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The World’s Best Dividend Portfolio Starts Here

22 of the best dividend income stocks provide steady investor cash

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Energy

ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, natural gas, natural gas liquids, liquefied natural gas and bitumen on a worldwide basis.The company has raised dividends for 12 years in a row, and has a ten year dividend growth rate of 15.10% per year. Currently, the stock is trading at 8.60 times earnings and yields 4.60%. (analysis)

Enterprise Products Partners L.P. (NYSE:EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the United States and internationally.The partnership has raised distributions for 15 years in a row, and has a ten year dividend growth rate of 6.70% per year. Currently, the partnership yields 4.80%. (analysis)

Chevron (NYSE:CVX), through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide.The company has raised dividends for 25 years in a row, and has a ten year dividend growth rate of 9.60% per year. Currently, the stock is trading at 8.60 times earnings and yields 3.10%. (analysis)

Consumer Discretionary

McDonald’’s (NYSE:MCD) franchises and operates McDonald’s restaurants in the global restaurant industry.The company has raised dividends for 36 years in a row, and has a ten year dividend growth rate of 28.40% per year. Currently, the stock is trading at 17.70 times earnings and yields 3.20%. (analysis)

YUM! Brands (NYSE:YUM), together with its subsidiaries, operates quick service restaurants in the United States and internationally.The company has raised dividends for 9 years in a row, and has a five year dividend growth rate of 17.80% per year. Currently, the stock is trading at 18.80 times earnings and yields 2.20%. (analysis)

Utilities

Dominion Resources (NYSE:D), together with its subsidiaries, engages in producing and transporting energy in the United States.The company has raised dividends for 10 years in a row, and has a ten year dividend growth rate of 5% per year. Currently, the stock is trading at 17.50 times earnings and yields 4.10%.

Piedmont Natural Gas (NYSE:PNY), an energy services company, engages in the distribution of natural gas to residential, commercial, industrial, and power generation customers in portions of North Carolina, South Carolina, and Tennessee.The company has raised dividends for 34 years in a row, and has a ten year dividend growth rate of 4.10% per year. Currently, the stock is trading at 19.40 times earnings and yields 3.80%. (analysis)

While diversification is important, I would advise against purchasing inferior stocks from sectors which are not exhibiting the strong fundamentals for long term dividend growth. In addition, diversification over time in the form of dollar cost averaging is important as well. While several of the companies listed above do not meet my entry criteria now, almost all companies met them at some point over the past year.

As a result, I have no exposure to the telecommunications sector. In addition, this portfolio is underweight in materials, information technology and industrials. The portfolio is overweight in consumer staples names however, which are defensive in nature. Since consumer use these companies’ products irrespective of whether the economy is expanding or contracting, these companies are well suited to be an overweight core of this portfolio.

Full Disclosure: Long all stocks mentioned, except for PNY


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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