Wednesday, June 18, 2008

20 Highest-Yielding High Yield Dividend Aristocrats

In my previous post The 20 Highest Yielding Dividend Aristocrats I highlighted a sample list of the 20 highest yielding dividend aristocrats. Being fascinated with companies which have consistently increased their dividends for over 25 years, I wanted to examine a similar list, using the High-Yield Dividend Aristocrats this time. You could open it in google spreadsheets from here.

This stock list is just for illustrative purposes only, however, and not a recommendation to buy or sell. Its performance could be better or worse than the S&P 500 benchmark.
























The list, dominated by financial companies, yields a whopping 6.37% as of June 14,2008. On the cautionary note, some of the companies in this list seem likely to cut their payments. With the exception of certain income trusts, I would not consider entering a long-term position in a company whose dividend payout ratio is significantly over 50%.

On the contrary side, in a study performed by Jeremy Siegel, he found that better total return performance was directly correlated with higher dividend yields. The highest yielding 100 stocks in the S&P 500, produced an annualized return of 14.27% versus an annualized return of 11.18% for the S&P 500 Index, which resulted in three times the wealth accumulation of the index. (1957-2002, S&P 500). So far this year certain higher yielding stocks in the S&P 500 have underperformed the market.

How do you think this list would perform untill the end of 2008?

Full Disclosure: I own GE, GCI, CINF, WL.

Relevant Articles:

- Current Aging of the Dividend Aristocrats
- Long term returns of S&P high-yield aristocrats
- Dividend Conspiracies
- The friendliest states for dividend investors

4 comments:

  1. My timing on that one is so perfect :Right after I posted this list, i read how FITB has cut its dividend. Last week, when I posted my first high-yield list, KEY cut its dividend as well.

    I am afraid to post a list about the highest yielding dividend achievers now.

    ReplyDelete
  2. Dear owner,

    Appreciated your best site and time.

    I have an investment and finance blog named Investment Internals at http://investinternals.blogspot.com

    Do you see any possibility for me to exchange a link between both sites.

    I would be grateful if you could give a reply ASAP. Please feel free to send the same if it is negative or positive.

    Best wishes to all your future endeavors.

    Sherin Devassy

    ReplyDelete
  3. Those dang financials! They are all very deceiving right now. However, they are all getting killed in the market right now as well so the yields will probably come back to normal fairly soon.

    ReplyDelete
  4. Please don't post anything about the stocks I own! :)

    Best Wishes,
    Dividends4Life

    ReplyDelete

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