Dividend stocks are great because they earn money throughout their holding period in the form of dividends. We are beginning a new year, so now is the time to evaluate the investment portfolio and restructure it to include some dividend stocks. If you already hold dividend stocks, read below to find those predicted to have the highest yields this year.
The stocks mentioned are all Dividend Aristocrats, meaning they have over 25 straight years of dividend increases. Each has a minimum yield of three percent and all are considered the highest yielding of their group. With one of the highest NYSE yields, Pitney Bowes represents the highest yielding stock on the list. Its annual dividend should increase by two cents early this year.
Kimberely Clark was founded 138 years ago and has paid dividends annually since 1935. Scott, Kleenex, Cottonelle, and Kotex are among its famous brand names. Though earnings have increased only modestly during the past ten years, the company has managed to extend its duration of higher dividend offerings. The stock currently has a dividend yield over four percent.
Johnson & Johnson is one of the world’s largest healthcare companies, with consumer, pharmaceutical and medical devices and diagnostics divisions. This is one of only a few companies with a credit rating of AAA and its dividend yield is 3.5 percent. Homecare products company Clorox is another high-yielding dividend stock, with a yield of over three percent.
Value investors will find the lack of participation in the 2010 market recovery by these companies attractive. Dividend yields are good and price/earnings ratios are moderate. Each of these companies operates worldwide and expects eastern Asia and other developing areas to contribute to much of its earnings growth. Throughout the financial crisis, these companies managed to increase their dividends and should continue to do so in 2011.
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Dividend investing is the only way I invest, and here's why: dividend stocks create a secure, passive income, and are less risky than non-dividend investing.
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