The World’s Best Dividend Portfolio Starts Here

22 of the best dividend income stocks provide steady investor cash

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The World’s Best Dividend Portfolio Starts Here

Creating income from a nest egg is a question that many baby boomers are spending countless nights figuring out. Many are relying on financial planners who are selling them annuities or some variation of the popular four percent rule.

For my retirement strategy I am relying on dividend growth stocks, which will provide dependable income, which increases over time and protects its purchasing power from inflation. I have a quantitative and qualitative process, which allows me to screen the hundreds of dividend growth stocks and narrow the list of candidates to 30 -40 individual companies.

Dividend growth investing is not some recent fad, as many market commentators would make you believe. Some of the richest families in the US, which have kept their wealth for several generations, seem to be living off dividends. If I were to start a dividend portfolio today, I would include the following stocks listed below.

Industrials

3M (NYSE:MMM) operates as a diversified technology company worldwide. The company has raised dividends for 54 years in a row, and has a ten year dividend growth rate of 6.60% per year. Currently, the stock is trading at 16.20 times earnings and yields 2.30%. (analysis)

United Technologies (NYSE:UTX) provides technology products and services to the building systems and aerospace industries worldwide.The company has raised dividends for 19 years in a row, and has a ten year dividend growth rate of 15.30% per year. Currently, the stock is trading at 15.90 times earnings and yields 2.40%. (analysis)

Information Technology

Automatic Data Processing (NYSE:ADP) and its subsidiaries provide business outsourcing solutions.The company has raised dividends for 38 years in a row, and has a ten year dividend growth rate of 13.10% per year. Currently, the stock is trading at 21.40 times earnings and yields 2.80%. (analysis)

Health Care

Johnson & Johnson (NYSE:JNJ), together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide.The company has raised dividends for 50 years in a row, and has a ten year dividend growth rate of 11.70% per year. Currently, the stock is trading at 15.30 times earnings and yields 3.30%. (analysis)

Financials

Aflac (NYSE:AFL), through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance.The company has raised dividends for 30 years in a row, and has a ten year dividend growth rate of 19.30% per year. Currently, the stock is trading at 8.30 times earnings and yields 2.60%. (analysis)

Realty Income (NYSE:O) engages in the acquisition and ownership of commercial retail real estate properties in the United States.The company has raised dividends for 19 years in a row, and has a ten year dividend growth rate of 4.20% per year. Currently, the stock yields 5%. (analysis)

Materials

Air Products and Chemicals (NYSE:APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide.The company has raised dividends for 30 years in a row, and has a ten year dividend growth rate of 11.80% per year. Currently, the stock is trading at 15.60 times earnings and yields 2.90%. (analysis)

Consumer Staples

Clorox (NYSE:CLX) manufactures and markets consumer and professional products worldwide.The company has raised dividends for 35 years in a row, and has a ten year dividend growth rate of 11.30% per year. Currently, the stock is trading at 18.90 times earnings and yields 3.20%. (analysis)

Coca-Cola (NYSE:KO), is a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.The company has raised dividends for 50 years in a row, and has a ten year dividend growth rate of 9.80% per year. Currently, the stock is trading at 20.30 times earnings and yields 2.70%. (analysis)

Kimberly-Clark (NYSE:KMB), together with its subsidiaries, engages in manufacturing and marketing health care products worldwide.The company has raised dividends for 40 years in a row, and has a ten year dividend growth rate of 9.50% per year. Currently, the stock is trading at 20.60 times earnings and yields 3.30%. (analysis)

PepsiCo (NYSE:PEP) engages in the manufacture and sale of snacks, carbonated and non-carbonated beverages, dairy products, and other foods worldwide.The company has raised dividends for 40 years in a row, and has a ten year dividend growth rate of 13.60% per year. Currently, the stock is trading at 19.40 times earnings and yields 2.90%. (analysis)

Procter & Gamble (NYSE:PG), together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods.The company has raised dividends for 56 years in a row, and has a ten year dividend growth rate of 10.80% per year. Currently, the stock is trading at 17.30 times earnings and yields 3%. (analysis)

Wal-Mart (NYSE:WMT) operates retail stores in various formats worldwide.The company has raised dividends for 38 years in a row, and has a ten year dividend growth rate of 18.10% per year. Currently, the stock is trading at 14.70 times earnings and yields 2.20%. (analysis)

Colgate-Palmolive (NYSE:CL), together with its subsidiaries, manufactures and markets consumer products worldwide.The company has raised dividends for 49 years in a row, and has a ten year dividend growth rate of 13% per year. Currently, the stock is trading at 21.40 times earnings and yields 2.30%. (analysis)

Walgreen (NYSE:WAG), together with its subsidiaries, operates a network of drugstores in the United States.The company has raised dividends for 37 years in a row, and has a ten year dividend growth rate of 21.20% per year. Currently, the stock is trading at 18.70 times earnings and yields 2.70%. (analysis)


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/the-worlds-best-dividend-portfolio-mmm-utx-adp-jnj-afl-o/.

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