Top Paying Dividend Companies: How to Set Up a Monthly Reinvestments Plans With the Best Companies.

Source
Source

Why Invest in the Stock Market. Isn't it too volitile?

I invest in Sharebuilder on a weekly to monthly basis. I have my own account and an account for two of my young nieces. I have done well in the past and find that investing in good sound quality companies with a low P/E ratio and and a return on equity (ROE) > 15% works best for me. I also look for wide moat stocks, that is stocks with lots of room to grow. I am often telling my husband when the nightly news talks about a huge drop in the market it is a great opportunity to buy.

As many of the baby boomers are facing retirement age they are becoming scarred with the stock market . The problem is that People that moved their money out of the stock market since 2008 into bonds and /or banks for interest have lost at least 2!/2 % income they could have made had they started in the market in safe dividend stocks and stayed put.

Some of my best investments have been companies like Apple, Target, McDonald's, Johnson and Johnson, Coke or KO, Pfizer, Proctor and Gambler, PG, Ge or General Electric, Ford or F. You may see a pattern here except for Apple. I love high yield investment companies. It is important to watch for companies that have been growing consistently over time and have also been growing there dividends regularly over time. Always reinvest your dividends and you will be surprised to see how quickly your money will grow. It is a lot like DRIP investing or Dividend reinvestment programs. These can be purchased through the individual company or through a low cost stock purchasing plan like share builder.

The economy has been down for so long I know many people are very discouraged, but I have to believe there is an end in sight. It may take getting the right people in the government first. In the meantime there are some good opportunities out there. Most economists see this as the only place to put your money and reap any growth. Otherwise it is like hiding you money under your mattress. Banks are not paying significant interest to warrant not investing in quality dividend paying companies. If the market falls you hold onto the stock and reap the benefits of the dividends. This is why you need to look to companies that have consistently held and/or increased their dividends over the past few years and there quite a few good ones out there.

How to Invest Like Warren Buffet

Top Dividend Stocks and ETF's

I like etf's because you get a mix of several stocks with a low fee. DVY is a great dividend income stock. Since 2009 it has consistently been on the rise.

HCN or Health Care REIT is the first real-estate investment trust to invest only in health care Properties.

CB Chub Insurance Company is doing so well that they collect more in income they than their fees and expenses.

ADP Automatic Data Processing is the largest human resources company

I also really like ETF's for investments. They offer many stocks managed or not managed for very low fees. Here is a list of some top rated ones.

  • PWE Is a 5 star morningstar etfs with pfe, csco, jpm, and orcl . It pays 1.91%FTA
  • FTA is a 4 star morningstar etf with fslr, vlo, nfx,kss paying 1.75%
  • FXO another 5 Star morningstar etf with fce/a, gpn exr paying 1.52%


Companies increasing Their Dividends

Here are 8 good companies increasing their dividends right now. Sysco corporation now has a dividend of 4% . It has raised its dividend for 10 consecutive years.. It deals with the food industry.

Another good dividend stock is national bankshares. National Bank shares or NKSH. It has raised its dividend times this year to 4%.

The Laclede Group LG has raised its dividend 9 consecutive times to 4%. It deals with the transportation retail distribution and sale of natural gas products.

The Williams CO (WMB) which deals with the gathering and distribution of natural gas within primarily the US. It has raised its dividend twice this year to 3.3%.

MDU Resources company (MDU) company also transmits natural gas . It raised it's dividend for 21 consecutive year to 3.3%.

Nike (NKE) has also raised it dividend for the 21st consecutive year to 1.6%

Union Pacific Railroad (UNP) has raised it's dividend for the 6th consecutive time this year to 4% It deals with rail transportation in North America. This has been a favorite or Warren Buffett.

New Jersey Resources (NJR) has it's dividend at 3.2% and finally Hanover Insurance Company has raised its dividend to 2.7%



High Rated High Dividend Stocks

  • Intel is being bought up by money tycoon Warren Buffet . It Is one of the only electronic firms to carry a dividend and although not that high yet it has grown 110% over the past few years according to The Street Authority. It has a ROE of 27.57% and is recommended as a buy according to The Street and a buy at 3 * for Standard and Poor.

According to a screen I pulled up for myself, Windstream (WS) looks promising at five stars and an ROE of 46.85%. It is also paying a dividend of 8.5%

Following is another example of results of a screen showing several good dividend stocks. These are among the highest rated 5 star stocks of Morningstar company.

  • Abbott (abt) dividend yield 3.47%
  • Alumina Ltd 5.00% div
  • Applied materials 2.86% div
  • ArceiorMittel SA 3.35% div
  • Avery Dennison Corp 3.52% div
  • BHP Billiton PLC 3.27% div
  • Banco Santander Brazil .SA Braz 3.14% div
  • Bank of New York Mellon 2.49% div
  • Charles Schwab 2.06% div




The Top Ten Best Paying Dividend Stocks

AT&T This famous utility stock has a dividend of 5.80%

Verizon(VZ) carries a dividend of 5.30%

Pfizer(PFE) has a dividend of 4.20%

GE has a dividend of 3.7 %

DuPont DD has a dividend of 4.40%

Johnson and Johnson carries a dividend of 3.60%

KFT carries a nice dividend of 3.30%

Proctor and Gamble has a dividend of 3.30%

Merck pays 5.6% and Int pays 3.5%

If you do some research or not you will realize just how safe these companies are. AT&T and VZ are not going anywhere. As long as we communicate by phone, and we will they will continue to grow. It used to be only adults carried Cell phones. Have you noticed how many teenagers and younger are carry and iPhone by Apple or A Droid by Verizon and that doesn't even take into account the usage minutes, apps and internet access people are purchasing through these companies.

Pfizer is a major household name. Since it bought out Wyeth it has become the biggest research from for medical products. Almost every household is dependent on one or more of it's medical products . You can either buy the stock directly from prizer or go through a discount investing website such as Scottrade or Sharebuilder.

We all know how much Johnson and Johnson has been and still is trusted by parents for it's quality infant products. It's Aveeno products are top sellers in the beauty and skin department and it has recently come out with the simple "OneTouch® Ping Glucose Management system.

All 10 of these stock have DRIP plans or rather dividend reinvestment plans with the companies. You can set up a monthly purchase plan and reinvest the dividends for compounding interest and watch your money grow at a much greater amount.

One of my all time favorites is CVX or Chevron an oil stock that pays a dividend of 3.60% and has a P/E of 7.17%. Another way to purchase many of these individual stocks at one time is with the ETF or Exchange Traded Fund of DVY. This is the Dow Jones Select Dividend Fund it has a low fee and contains many top dividend stocks. To name a few McDonald's ,Chevron, Lorillard, Lockheed Martin and Kimberly Clark to name a few. I believe for now this is a safe way to play defensive if the market were to go into another free fall. Here is a link for more information about DVY.

One think to keep in mind is Obama's 2013 Budget Proposal which will include a significant hike in the tax rate for dividends. This is something to be cognizant of. Here is a link concerning his proposal

Any one of these stocks would also make a great graduation or baby gift and allow the parent to watch it grow adding more stock on each birthday. Eventually the child will have a nice inheritance from your for education or to get of to a good start in life. I have done this for two of my nieces.


High Dividend Investments to Check Out

According to Carla Pasternak, The street Authority's high yield investor at& t and VZ are both paying at least 6 % yields

Of high yielding banks she likes commercial national financial (CNAF) paying at least 5% yield and is also has a low risk.

Of her 10% high yield investments a few of her favorites are Zions Bank (ZB-PC), Legacy Reserves (LGPY), and MV Oil Trust (MVO)These are classified as REIT's and BDC's'

Another recommended investment is UIL Utility a highly regulated electric company paying 5.1%

I also like B&G foods (BGS) paying 3.9% yield.

Her 5% securities include Magellan Midland (MMP) and Enterprise Products (EPD)

Kimberly Clark


And finally a highly recommended utility company paying 5.1% is UIL Holdings.

A High Yielding Company That Is Hated

There is also PM or Philip Morris . It is one of the least popular stocks because of what it sells, cigarettes that have killed so many people. It still continues to grow and increase it's dividends.


Why It Is Still Good to Invest in Dividend Blue Chips When Their Prices Drop and Dividends Go Up!!!

Many say it is a bad time to invest but as prices drop consider the above list simply highlights well established companies that have enormous competitive advantages, strong balance sheets and most pay a fairly decent dividend. Many are also historically undervalued as well which bodes well for long-term investors.

Update on Top Dividend Paying Stocks

I think by now most of us get the idea that it is better to purchase a stock paying a dividend than not. Back a year ago the dividend investor made 1.5 % in the down market while the non dividend portfolio lost somewhere around 7.5%.

It is time for me to update you with some of the best dividend paying stocks for 2012. We should always remember it is not just the dividend we are looking for but one paying dividends from a high quality company with great financial numbers.

  • HJ Heines Co HNZ
  • Verizon VZ
  • Waste Management WM
  • Duke Energy DUK
  • Johnson and Johnson JNJ
  • Kimberly-Clark KMB
  • Mattel MAT
  • Reynolds American RAI
  • Bristol-myers-sqibb BMY
  • Pfizer PFE

Five Great Investing Alternatives for 2012

Us Treasuries, corporate bonds, CD's and savings accounts are paying so little that the investor must get into the market to see some return on his investment. Here are 5 more divined stocks recommended by a top investment agent for 2012.

MCD Mc Donald's paying 2.7%

PFE Pfizer paying 4.40%

VZ Verizon Paying 5.40%

DVY or Ow Jones Select Dividend Index Fund Paying 3.5% Although there is a small fee with this fund some of the insecurity is taken out as it is made up of 100 of the top dividend paying companies. These include Chevron, McDonald's, and Caterpillar.

Finally CLCT is a dividend paying gold stock which actually holds other collectables but primarily gold. It is paying 7.5%.


New upgrade of Safe stocks for Volatile market

MCD paying 3.3%

TNH paying 10.1%

AGNC paying 20.8%

HNZ Paying 3.8%

PVR paying 7.5%

MSFT paying 2.7%

KMP paying 6.3%

UL paying 3.8%

KO paying 3.0%

ATO paying 4.6%

Stocks recommended by top analyst at Investor Place.com

More Great Dividend Stock for 2015

like dividend stocks and always reinvest. When you look at a dividend stock you want to make sure that the dividend rate has been maintained or increased for over 25 years. The PE is hopefully below 20. A dividend yield above 2.50%. Dividend payout ratio below 60%. Finally 10 annual dividend growth rate above 6%.

The updated dividend investor portfolio is;


Position Average Purchase Price Initial Purchase Date Percentage Gain/Loss Excluding Dividends
CVX 108.06 12/6/2012 1.16%
MCD 96.54 1/3/2014 -2.28%
ORI 16.22 4/4/2014 -9.19%
MCY 50.75 9/5/2014 18.27%
TMP 44.46 8/6/2014 19.52%
CTBI 36.55 5/5/2014 -10.53%
XOM 89.01 4/5/2013 3.76%
HP 90.57 10/6/2014 -25.94%
T 32.34 3/6/2014 6.80%
AFL 58.63 1/9/2015 4.01%

I really like Jason the dividend mantra blogger . He has great articles and i have learned so much from him He has been growing his dividend portfolio for quite a few years. His goal is to live of the income during retirement. Here is a quick list of his most recent portfolio

Company Ticker Shares Cost Basis Market Value Weight Yield

Aflac Incorporated AFL 100 $3,891.36 $6,401.00 3.4% 2.44%

Armanino Foods of Dinstinction Inc. AMNF 800 $1,472.00 $1,752.00 0.9% 3.29%

Air Products & Chemicals, Inc. APD 20 $1,716.20 $3,025.60 1.6% 2.14%

Avista Corp. AVA 55 $1,373.19 $1,879.90 1% 3.86%

Baxter International Inc. BAX 60 $4,080.35 $4,110.00 2.2% 3.04%

BHP Billiton PLC (ADR) BBL 115 $5,712.65 $5,089.90 2.7% 5.6%

Bank of Nova Scotia BNS 40 $2,218.40 $2,009.20 1.1% 4.28%

BP PLC (ADR) BP 80 $3,400.20 $3,128.80 1.7% 6.14%

The Clorox Co. CLX 35 $3,076.35 $3,863.65 2% 2.68%

ConocoPhillips COP 55 $2,803.46 $3,586.00 1.9% 4.69%

Chevron Corporation CVX 40 $4,026.74 $4,199.20 2.2% 4.08%

Deere & Company DE 30 $2,606.80 $2,630.75 1.4% 2.74%

Walt Disney Co. DIS 15 $1,407.23 $1,573.35 0.8% 1.1%

Digital Realty Trust, Inc. DLR 65 $3,534.30 $4,287.40 2.3% 5.15%

Emerson Electric Co. EMR 60 $2,867.90 $3,397.20 1.8% 3.32%

General Dynamics Corporation GD 20 $1,271.40 $2,714.60 1.4% 2.03%

General Electric Company GE 170 $4,252.50 $4,217.70 2.2% 3.71%

Harris Corporation HRS 40 $1,430.60 $3,150.40 1.7% 2.39%

Int'l Business Machines Corp. IBM 15 $2,631.25 $2,407.50 1.3% 2.74%

Illinois Tool Works Inc. ITW 35 $1,640.80 $3,399.90 1.8% 2%

Johnson & Johnson JNJ 100 $6,478.24 $10,060.00 5.3% 2.78%

Kinder Morgan Inc. KMI 180 $6,370.80 $7,570.80 4% 4.28%

The Coca-Cola Co. KO 140 $4,878.90 $5,677.00 3% 3.26%

Lorillard Inc. LO 50 $1,918.73 $3,267.50 1.7% 4.04%

McDonald's Corporation MCD 60 $5,203.76 $5,846.40 3.1% 3.49%

Medtronic PLC MDT 37 $2,847.15 $2,885.63 1.5% 1.56%

Altria Group Inc. MO 80 $2,222.32 $4,001.60 2.1% 4.16%

National Oilwell Varco, Inc. NOV 65 $4,001.69 $3,239.45 1.7% 3.68%

Norfolk Southern Corp. NSC 70 $4,674.81 $7,204.40 3.8% 2.29%

Realty Income Corp. O 70 $2,932.54 $3,612.00 1.9% 4.41%

ONE Gas Inc. OGS 8 $179.15 $345.84 0.2% 2.78%

Omega Healthcare Investors Inc. OHI 60 $1,917.03 $2,434.20 1.3% 5.32%

ONEOK, Inc. OKE 55 $2,247.51 $2,653.20 1.4% 5.02%

PepsiCo, Inc. PEP 77 $4,899.15 $7,362.74 3.9% 2.74%

Procter & Gamble Co. PG 51 $3,220.12 $4,178.94 2.2% 3.14%

Philip Morris International Inc. PM 115 $7,927.55 $8,662.95 4.6% 5.31%

Phillips 66 PSX 27 $816.34 $2,122.20 1.1% 2.54%

Praxair, Inc. PX 10 $1,200.60 $1,207.40 0.6% 2.37%

Royal Dutch Shell PLC (ADR) RDS.B 25 $1,652.50 $1,567.50 0.8% 6%

Raytheon Company RTN 25 $1,286.00 $2,731.25 1.4% 2.45%

Southside Bancshares, Inc. SBSI 70 $1,296.20 $2,008.30 1.1% 3.21%

AT&T Inc. T 100 $3,102.50 $3,265.00 1.8% 5.76%

Toronto-Dominion Bank TD 36 $1,484.44 $1,542.60 0.8% 3.8%

Target Corporation TGT 70 $4,364.60 $5,744.90 3% 2.53%

Orchids Paper Products Co. TIS 60 $1,644.39 $1,617.60 0.9% 5.19%

T. Rowe Price Group Inc. TROW 20 $1,662.40 $1,619.60 0.9% 2.57%

Unilever PLC (ADR) UL 100 $4,037.80 $4,171.00 2.2% 3.53%

Visa Inc. V 20 $1,076.50 $1,308.20 0.7% 0.73%

Vodafone Group PLC (ADR) VOD 81 $4,069.51 $2,647.08 1.4% 5.51%

Verizon Communications Inc. VZ 39 $1,821.87 $1,896.57 1% 4.52%

Wells Fargo & Co. WFC 90 $3,303.10 $4,896.00 2.6% 2.57%

Wal-Mart Stores, Inc. WMT 38 $2,038.36 $3,125.50 1.7% 2.38%

ExxonMobil Corporation XOM 20 $1,727.00 $1,700.00 0.9% 3.25%


References

References

The Motley Fool

Sharebuilder

Scotttrade

http://www.dividendmantra.com/dividend-income/

http://www.dividendgrowthinvestor.com/2009/02/dividend-edge.html

http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=6608343&page=Concept%3ADividend_Investing&comments=0&format=html

http://dailytradealert.com/2015/04/09/these-stocks-could-compound-your-wealth-over-the-long-term/

Today I am long on XOM, KO, JNJ, MMM, CVX, PFE, PG, WM, MCD, ABT, GE, SLV, AND VZ.

Some Ideas I Will Look into and Caution on Your Side

I wlll also be checking out CPL, DEM, SDT,INTL, GOOG, SLW and MSFT for my own interest.

PLEASE REMEMBER THESE ARE ALL IDEAS AND NOT FOR JUST COPYING FOR YOUR INVESTING. LOOK INTO THE COMPANIES YOU ARE INTERESTED IN IN MORE DEPTH.


FOR MORE UPDATED INFORMATION PLEASE GO TO THIS LINK

Safe Dividend Stocks and ETF's to Retire On!

More by this Author


Comments 12 comments

nancynurse profile image

nancynurse 3 years ago from Southeast USA Author

Thanks I appreciate your input!


nancynurse profile image

nancynurse 3 years ago from Southeast USA Author

Thanks hope you get a chance to read the new information for 2013!


nancynurse profile image

nancynurse 4 years ago from Southeast USA Author

I hope you do well . The market has been very up and down these past few months. Good luck and thanks so much for commenting.


Stacie L profile image

Stacie L 4 years ago

These are good ideas..I started investing in a few and will investigate more.


nancynurse profile image

nancynurse 4 years ago from Southeast USA Author

I know you feel as if you are playing but you are also learning a great deal. Thanks so much for reading and commenting.


Johnnyd44 profile image

Johnnyd44 4 years ago from Florida

nancynurse,

I really enjoyed this piece. The information is helpful since I am playing (I guess I shouldn't use that word when it comes to our future retirement) with my wife's IRA she started with a rollover when she left the company she worked for. I am investing in individual stocks and am trying to get as much information as I can so I don't make any huge mistakes.

Thanks again for providing. I already own GE and have been looking at Abbott before reading your Hub. I will look at the others you pointed out.

Johnny


nancynurse profile image

nancynurse 5 years ago from Southeast USA Author

Yes it is true there is turmoil in the market but for the long term those stocks with strong balance sheets and increasing dividends and esp undervalued can do very well for the long term investor.


nancynurse profile image

nancynurse 5 years ago from Southeast USA Author

Thanks GClark for your comments . I have been using sharebuilder for about 10 years now and have done very well. I so appreciate your following.


claptona profile image

claptona 5 years ago from Earth

Hi Nancy,

Good Hub, good ideas for all people who invest.

Unfortunately, I am reading more people in the investment world saying to stay out of the market.

It is rigged against the small investor.

The second reason has to do with business and clients accounts. MF Global used clients monies (illegal) and now the customers can't get their money.

The combination of lack of trust with those in the "investment" world and the closed door edge given to hedge funds, banks and insurance companies, one has to do exceptionally well in order to come out ahead.

The market has changed quite dramatically in the last 4 years.

It is actually worse than going to Vegas. Vegas you know the odds are against you, while on Wall Street it has been sold as a "free market". This has turned out to be quite untrue over the last 4 years.

Myself, I am out now.

Gold and silver coins, in hand, is my bet.

JMHO from the articles I am reading.

Cheers


GClark profile image

GClark 5 years ago from United States

Excellent Hub! Well-written with lots of great information and advice. Sharebuilder is good because you can buy portions of various stocks. Thanks for sharing. GClark


nancynurse profile image

nancynurse 5 years ago from Southeast USA Author

Thanks so much for your feedback


Millionaire Tips profile image

Millionaire Tips 5 years ago from USA

This is great specific information on how to choose companies, along with your recommendations.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working