As promised, I will continue with the dividend achievers list, this time around I will talk about strong dividend paying stocks in the largest market in the world, the U.S.
One great source of strong dividend companies in the US is PowerShares High Growth Rate Dividend Achievers (PHJ). Here is an excerpt from the Powershares site that describes PHJ:
The PowerShares High Growth Rate Dividend Achievers™ Portfolio (Fund) seeks to replicate, before fees and expenses, the High Growth Rate Dividend Achievers™ Index, which is designed to identify the 100 Dividend Achiever™ companies with the highest 10 year annual dividend growth rate. These companies have increased their annual dividend for ten or more consecutive fiscal years. The portfolio is rebalanced quarterly and reconstituted annually.
I always find it helpful to take a look at ETF/fund lists to get some stock ideas. If you are not comfortable buying individual stocks, why not buy the ETF/fund itself and own ALL of the strong dividend paying stocks for a low management fee?
|American International Group||AIG||0.95%|
|Bank of America||BAC||4.48%
|Wells Fargo & Co||WFC||3.25%|
|Johnson & Johnson||JNJ||2.42%|
|Automatic Data Processing||ADP||1.89%|
There are quite a few strong dividend payers in the US, but the ones listed above are the creme of the crop and have increased their payouts at least once / year for the past 10 years.What I regularly do is keep a watching the dividend payers for dips in their stock price.The stocks that I highlighted in bold are stocks that Warren Buffett holds in his portfolio. Perhaps something to look into further.
For Canadians, it is more efficient to hold U.S dividend payers INSIDE of your RRSP. Please see my article on dividend taxes here.
Hope you enjoyed the dividend series. Happy Investing!
Disclaimer: I own some of the stocks listed in this article. The stocks listed in this article are not stock recommendations, buy at your own risk.If you would like to read more articles like this, you can sign up for free my newsletter service below (we will not spam you).