In 2009, I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it. Here is some information on each of the constituent lists and some highlights on this year's changes:
Dividend Aristocrats: Companies in the S&P 500 that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. As the name denotes, these are the best of the best – the blue blood stocks, including names like:
- Abbott Laboratories (ABT) | Yield: 3.9%
- Coca-Cola Co (KO) | Yield: 2.9%
- Exxon Mobil (XOM)| Yield: 2.1%
- Johnson & Johnson (JNJ)| Yield: 3.5%
- McDonald’s Corp (MCD)| Yield: 3.2%
- 3M Co. (MMM)| Yield: 2.4%
- Procter & Gamble (PG)| Yield: 3.1%
- Wal-Mart Stores (WMT) | Yield: 2.8%
US Broad Dividend Achievers: Is comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. Notable names on this list include:
- Avon Products Inc. (AVP) | Yield: 3.4%
- ConocoPhillips (COP) | Yield: 3.3%
- Chevron Corporation (CVX) | Yield: 2.8%
- Nucor Corporation (NUE) | Yield: 3.0%
- Raven Industries, Inc. (RAVN) | Yield: 1.2%
The U.S. Dividend Champions: Is maintained by Dave Fish of MoneyPaper. The list is updated monthly and located at the The Drip Investing Resource Center. Like the Dividend Aristocrats above the Dividend Champions list looks for companies that have increased their dividend for at least 25 consecutive years. However, since S&P 500 membership is not a requirement, the list is larger than the Dividend Aristocrats list and also includes small-cap companies.
- Bowl America (BWL.A) | Yield: 5.0%
- Conn. Water Service (CTWS) | Yield: 3.8%
- Weyco Group Inc. (WEYS) | Yield: 2.6%
Membership in the Stock Ideas list declined in this edition, but it was significantly less than what was experience in the prior year. Overall the number of constituents fell to 198 in the 2011 Stock Ideas list from 218 stocks in the 2010 list. There were 319 stocks in 2009. There were 28 companies that fell off the list, including these prominent stocks:
- Eli Lilly & Co. (LLY)
- Paychex Inc. (PAYX)
- Progress Energy Inc. (PGN)
- SUPERVALU Inc. (SVU)
- Integrys Energy Group, Inc. (TEG)
The news wasn't all bad. Partially offsetting the 28 companies that fell off the list were 5 new companies joining the Dividend Stock Ideas List. Some of these aren't household names, not yet at least, but here are some names we will likely be seeing in the future:
- ConocoPhillips (COP) | Yield: 3.3%
- CARBO Ceramics Inc. (CRR) | Yield: 0.7%
- NextEra Energy, Inc. (NEE) | Yield: 4.0%
- Superior Uniform Group Inc. (SGC) | Yield: 4.7%
- Unisource Energy Corp. (UNS) | Yield: 4.6%
You can see the entire Dividend Stock Idea List here. Remember, not every stock listed here is a great dividend investment, but virtually all great dividend investments are on this list.
Full Disclosure: Long ABT, KO, JNJ, MCD, MMM, PG, WMT, CVX, NUE, LLY, TEG. See a list of all my income holdings here.
- Charlie Munger's 10 Rules for Investment Success
- Warren Buffett's Dividend Stocks
- Seven Important Reasons for Dividend Investing
- 20 Dividend Stocks With A 20% Yield In 20 Years
- Searching the World For The Best Dividend Stocks
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