A Fools Playbook: The 7 Biggest, Baddest Dividend Stocks Out There
At the Daily Tape we look for opportunities in the market this includes short term plays as well as those that produce the best dividends for your money. We follow the best traders and investment commentary out there for one main reason, to make us the most money possible and to offer this information to our readers.
Thanks to Fool commentary we want to share with you the best dividend stocks out there.
Don’t be fooled into thinking dividend stocks are just for those nearing retirement, though. For fans of growth stocks, a study by Robert Arnott and Clifford Asness actually links higher dividend payouts to higher earnings growth. Further, Wharton professor Jeremy Siegel has studied the dividend situation and concludes: “Through the years, diversified portfolios of stocks that pay dividends have not only beaten those that don’t, but have also handily outperformed the S&P 500.”
So what are the biggest payers?
For those looking for some of these dividend plays, Standard & Poor’s helps us out. Each year, they construct a list called the Dividend Aristocrats. These are “large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years.”
Yes, you read that right. 25 years.
Only a few dozen companies make the list. Here are the seven with the highest dividend yields.
| Company | Industry | Market Cap | Payout Ratio | P/E (trailing) | Dividend Yield |
|---|---|---|---|---|---|
| CenturyLink (NYSE: CTL) | Telecom | $10.7 billion | 85% | 12.9 | 8.12% |
| Pitney Bowes (NYSE: PBI) | Mail processing equipment | $5.1 billion | 75% | 12.4 | 5.93% |
| Cincinnati Financial(Nasdaq: CINF) | Property casualty insurance | $4.5 billion | 55% | 9.8 | 5.64% |
| Integrys Energy Group(NYSE: TEG) | Utility | $3.8 billion | 127% | 24.2 | 5.54% |
| Eli Lilly (NYSE: LLY) | Pharmaceuticals | $41.1 billion | 49% | 8.9 | 5.43% |
| Consolidated Edison(NYSE: ED) | Utility | $13.3 billion | 66% | 14.4 | 5.05% |
| Leggett & Platt (NYSE:LEG) | Home furnishing components | $3.0 billion | 83% | 17.3 | 4.86% |
