Five Of My Favorite "Dividend Champions"
Friday, January 11, 2013
Printer-Friendly | PDF Version | Whitelist Us  | Also visit StreetAuthority

Five Of My Favorite "Dividend Champions"

-- By Paul Tracy

By investing in these "Dividend Champions" at the right time, you can get quick gains and lock in a higher yield than other investors. (Full Story Below)

Also in Today's Issue...

10 Simple Ways to Earn Extra Retirement Income This Year
For an instant boost to your income, look no further. One of our picks is yielding 14.5% right now, and it's handed investors 72% total returns since 2008. Learn more about this stock - and 9 others - in this special report.
Pay Your Mortgage With Options?
Or, you could pay your car payment, take a trip to visit the grandkids or go on a long overdue vacation. It's possible thanks to the income generating power of options. And best of all, options are actually much safer than you've been led to believe - if you know what less than 1 in 4 investors know about using options to generate income. For a proven way to increase income in retirement, click here.

Five Of My Favorite "Dividend Champions"

This is the most foolproof way I can think of to earn 1,000% returns and yields above 50%.

It may sound impossible, but this will be a reality for many forward thinking investors.

The numbers will be different for every investor, depending on when they recognized this opportunity. Those who saw it earliest will make the most money.

I'll explain everything you need to know shortly. But before we go any further, you need to understand one very critical point...

To take advantage of this opportunity you have to change the way you look at your portfolio.

As it stands, many investors will ignore what I'm going to share with you... and I know exactly why.

You see, as with any great goal, this one will take time to reach.

Try to think of a great achievement that only took a few weeks or months to accomplish -- they are few and far between. It took decades to put a man on the moon. It took decades to develop a vaccine for polio. It took four years to construct the Golden Gate Bridge... and five years to build the Hoover Dam.

These accomplishments weren't done in a few weeks or a few months. The biggest goals -- the ones that can truly change the path of your life -- take years, if not decades, to accomplish.

And nowhere is this more applicable than with investing.

Do you think Warren Buffett became one of the world's richest men in the span of a couple of years? Of course not. Buffett bought his first stock about 70 years ago.

The world's greatest businesses weren't built in just a few months, either. Starbucks (Nasdaq: SBUX) didn't build 18,000 stores overnight. The company is more than 40 years old. Intel (Nasdaq: INTC), synonymous with personal computers, has actually been around since 1968 -- well before the personal computer.

And just like Buffett... or the world's greatest businesses... your greatest wealth-building will come from years or decades of work -- not days, weeks, or months.

Even today, long-term thinking doesn't come naturally. That's why so many people have trouble saving for retirement...

But the best way to maximize your returns is to be patient and invest in businesses that have a track record of raising dividends. There are dozens of stocks out there that have tremendous track records of growing their dividend payments.

There are so many, in fact, that it's difficult to tell you about all of them.

The best are known as "Dividend Champions." This term, coined by investment researcher David Fish, refers to stocks that have raised dividends for 25 consecutive years or more.

If you want to own dominant companies that deliver consistent long-term returns and are committed to raising their dividend payments, then there's no better place to start than with the list of "Dividend Champions." (You can see the full list of "Dividend Champions" here.)

Take Colgate-Palmolive (NYSE: CL), for example. In the past 20 years it has raised its dividend 835%. If you had bought it back then, not only would you be sitting on a 50% dividend yield (based on cost), but you would have a total return of 1,162%.

And it's a similar story with my four other "Dividend Champions. There's only one problem...

Right now the stock market is expensive. It sits near its highest point in five years. Every day more investors are figuring out that investing in dominant companies that return billions of dollars to investors is a great way to make money.

But you don't want to overpay. Instead, if you know what to look for you can keep on eye on your favorites and buy them at the right time.

If and when some of these investments hit my "Buy Under" prices, it's time to consider adding them to your portfolio.

A Few of My Favorite Dividend Champions

Security Yield Years of Dividend Increases Annual Div. Growth
(Last 10 Years)
Price Buy
Under
Colgate-Palmolive (CL) 2.3% 49 +13% $107.09 $95
Kimberly-Clark (KMB) 3.5% 40 +10% $85.10 $72
McDonald's (MCD) 3.4% 36 +29% $91.73 $83
AT&T (T) 5.3% 29 +5% $34.27 $30
Johnson & Johnson (JNJ) 3.4% 50 +11% $72.35 $66

Of course, just because a company has a history of raising dividends and returning money to investors, that doesn't guarantee future results.

That said, this list is a great starting point for further research. I plan to continue watching these stocks, and if one or more fall below my "Buy Under" prices, then I'll consider buying them.
 

All the best,

Paul Tracy
StreetAuthority Co-founder, Chief Investment Strategist -- Top 10 Stocks

P.S. -- Have you heard of the Dividend Vault? In short, we predict 13 companies are going to account for more than 10% of all dividends paid by major U.S. corporations this year. One has enough cash on hand to pay a 45% dividend yield. Another, with billions in share buybacks and an ever-increasing dividend, I call the "most shareholder friendly company on earth." To get the names and ticker symbols of these two companies, click here now.  

Disclosure:  Editor Paul Tracy owns shares of SBUX, INTC, CL. StreetAuthority owns INTC, SBUX and T in one or more "real-money" portfolios. In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio. Members of our staff are restricted from buying or selling any securities for two weeks after being featured in our advisories or on our website, as monitored by our compliance officer.


Income Notes

Ford Motor Co. (NYSE: F) announced Thursday that it was raising its dividend 100%, from $0.05 to $0.10. That helped lead to establishing a new 52-week high.

--  Research Staff


10 Best Retirement Income Stocks Now

Some pay quarterly. Others pay monthly. All offer you a safer, more stable, and reliable source of high income even if the market goes down.

Get the full details and stock symbols here.


Breaking News

How To Generate Instant Income In The "Dividend Decade"

With some predicting that all of the market's gains in the next 10 years will come from dividends, investors absolutely must know about this little-known way for investors to generate income from the best companies in the world...

Read On...


This Scares Me More Than The Fiscal Cliff Ever Did

While politicians and investors alike were losing sleep worrying over the fiscal cliff, it never scared me much. But something else nobody is talking about is much scarier to me...

Read On...


The Most Hated Company on Earth Is Making Investors Rich

One of the most-hated companies on earth is up 95% in the past three years... and it has plenty of room to keep going.

Read On...


 


 

Home | Issue Archives | About Us | Meet the Staff | Subscribe
Premium Content
Research Reports | Media Coverage | Testimonials | Advertise

Dividend Opportunities is a publication by StreetAuthority, LLC, 4601 Spicewood Springs Rd, Building 3, Suite 100, Austin TX 78759 or www.StreetAuthority.com. You are receiving this newsletter because you visited us at StreetAuthority.com and registered to receive our complimentary investing newsletter -- Dividend Opportunities. If you feel you have received this issue in error, please follow the instructions below to unsubscribe or contact us by visiting our web site.

DISCLAIMER: StreetAuthority, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing StreetAuthority materials and web sites, you agree to our Terms and Conditions of Use, available here, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our web site.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in this report should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions.
StreetAuthority receives no compensation of any kind from any companies that may be mentioned in our newsletters or on our web site. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities discussed in this report or on our web site.

To Unsubscribe
You may choose to stop receiving our Dividend Opportunities newsletter at any time.
Unsubscribe here.

Subscribe for FREE

Subscribe to Dividend Opportunities today and you'll receive a FREE newsletter three times a week, plus a FREE in-depth research report that identifies some of today's highest-yielding securities.

There's absolutely nothing to purchase, we'll keep your email address private, and you can cancel at any time. You truly have nothing to lose, so take advantage of this no-hassle, risk-free offer today!

Click here to subscribe now.