Below is a screen I ran this morning on dividend stocks. This screen seeks to identify quality companies that have a history of good dividend growth and that also have an additional kicker: their shares are sporting above-average yields. All four are ranked A or better by Standard & Poor's Investor service. All four have grown their dividends at double digits over the last 5 years.
The Strategy for owning/investing in dividend stocks
Cash dividends are tangible. They can't be fabricated, or falsified, or manipulated. Over time, dividends are a true record of a company's performance. They can also represent a significant proportion of an investment's total return. Since 1926, dividends have accounted for almost 42% of the total return (capital appreciation plus reinvested dividends) of the S&P 500. The attraction of a safe, secure dividend, moreover, will help to support and cushion a stock when the market is going through bad times and is under downward pressure.
Company Name | Ticker Symbol | S&P Rank (earnings/div. rank) | Dividend Yield | Dividend Growth Rate(5 yr avg) | Trailing P/E | Current Ratio |
VF Corp | VFC | A | 3.4% | 17.81% | 14.9 | 2.3 |
Johnson & Johnson | JNJ | A+ | 3.24% | 11.45% | 13.4 | 1.8 |
Sysco Corp | SYY | A+ | 3.72% | 13.05% | 14.5 | 1.7 |
Emerson Elec Co | EMR | A | 3.47% | 10.53% | 15.6 | 1.5 |
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