Wednesday, June 11, 2008

The 20 Highest Yielding Dividend Aristocrats

In today’s low interest rate environment, retirees are having a hard time finding tax efficient income opportunities, worthy of their money, which would help them enjoy their post-working years. A great idea for income seeking investors is investing in stocks that pay good yields and have consistent dividend payments. With inflation averaging around 3 - 4% per year, your investment in dividend paying stocks would provide you with a source for income that keeps its purchasing power over time, which unlike fixed income securities can also provide you with capital gains. Unlike bond payments which are fixed, stock dividends could be raised and thus provide stockholders with a nice raise for owning the right companies.

A good starting point for income investors is the S&P Dividend Aristocrats list, which features companies that have increased their annual dividend payments every year for more than 25 consecutive years. I have selected the 20 highest yielding stocks in the index, along with their ticker, P/E ratio, dividend yield and dividend payout ratio.
























The portfolio consisting of the 20 highest yielding stocks in the Dividend Aristocrats index currently yields 5.31% ( As of May 23, 2008). This is far better than most bonds and most stocks. This portfolio is just for illustrative purposes only, however. Its performance could be better or worse than the S&P 500 benchmark.

You could access the spreadsheet from here.

Full Disclosure: I own GCI, CINF, GE, KMB and CLX.
Relevant Articles:

- The next bubble in the making.
- Dividend Champions Watchlist
- Dividend Growth Stocks Watchlist
- The case for dividend investing in retirement

3 comments:

  1. Dividend Growth Investor - Thanks for the information. I will tuck this list of 20 away and keep an eye on them for buying opportunities after doing some due diligence.

    ReplyDelete
  2. Good read. If you are going to chase yield, the Aristocrats list is the place to do it.

    Best Wishes,
    Dividends4Life

    ReplyDelete
  3. Thanks for stopping by passive faily income and D4L.

    I am not really trying to chase yield, I was just looking at the highest 20 yielding aristocrats. You should really check out the discussion on Seeking Alpha. It's so funny when people don't have anything else to do, but try offend others :-)

    ReplyDelete

Questions or comments? You can reach out to me at my website address name at gmail dot com.

Popular Posts