The Case for Dividend Paying Stocks

By on February 20, 2010

Jason Kelly has written a long post on the benefits of of building a portfolio of dividend payers (source below). Kelly also promotes a book published by Dave Van Knapp, “The Top 40 Dividend Stocks For 2010.” One of the nice benefits of consistently growing dividend payers is that the income from dividends rises yearly as opposed to a bond whose payout is fixed.

SMA Comment: The current market environment has made investing based on dividends very enticing since some of the best dividend payers with strong brand names and increasing annual payouts are trading at historically low valuations relative to the general market (i.e. Abbott Labs, AT&T, Coca Cola, Johnson & Johnson, McDonalds, Procter and Gamble, Pepsico, Verizon, and many others).

Source: Jason Kelly
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