Naughty or Nice Part II: 5 Delightfully Sinful Dividend Stocks

Stocks with social stigmas often also have bargain pricings

Aug 14, 2012, 9:01 am EDT | By Charles Sizemore, Editor, The Sizemore Investment Letter

Diageo

Dividend Yield: 2.5%

Diageo Moving down the list of all things naughty, we come to booze. And the single-best play in the world of spirits is British-based Diageo PLC (NYSE:DEO), the largest and most diversified seller of premium alcoholic beverages in the world.

Diageo’s brands include Johnnie Walker scotch, Smirnoff vodka, Baileys Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum, Jose Cuervo tequila and many, many others. The company has been a long-time favorite of the Sizemore Investment Letter for its exposure to emerging markets; Diageo already gets 40% of its revenues from emerging markets, and this number grows every year.

Diageo is a current constituent of the Mergent International Dividend Achievers Index, meaning the stock has a long history of raising its dividend. It currently yields a respectable 2.5%.