Below is a screen I ran this morning on dividend stocks. This screen seeks to identify quality companies that have a history of good dividend growth and that also have an additional kicker: their shares are sporting above-average yields. All four are ranked A or better by Standard & Poor’s Investor service. All four have grown their dividends at double digits over the last 5 years.
The Strategy for owning/investing in dividend stocks
Cash dividends are tangible. They can’t be fabricated, or falsified, or manipulated. Over time, dividends are a true record of a company’s performance. They can also represent a significant proportion of an investment’s total return. Since 1926, dividends have accounted for almost 42% of the total return (capital appreciation plus reinvested dividends) of the S&P 500. The attraction of a safe, secure dividend, moreover, will help to support and cushion a stock when the market is going through bad times and is under downward pressure.
| Company Name |
Ticker Symbol |
S&P Rank (earnings/div. rank) |
Dividend Yield |
Dividend Growth Rate(5 yr avg) |
Trailing P/E |
Current Ratio |
| VF Corp |
VFC |
A |
3.4% |
17.81% |
14.9 |
2.3 |
| Johnson & Johnson |
JNJ |
A+ |
3.24% |
11.45% |
13.4 |
1.8 |
| Sysco Corp |
SYY |
A+ |
3.72% |
13.05% |
14.5 |
1.7 |
| Emerson Elec Co |
EMR |
A |
3.47% |
10.53 |
15.6 |
1.5 |