2011 Dividend Growth Challenge

By: ispeculatornew
Date posted: 01.04.2011 (8:00 am) | Write a Comment  (0 Comments)

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Last week, I received a simple question about a stock that had a 3% growth rate on its 3% dividend yield. I was asked if many stocks filled that criteria. So I did some research and found quite a few so I decided to take things one step further. How many stocks if any would you expect to have a 4% dividend yield, a 4% dividend growth over both 1 year and 5 years? The answer? 8!! Not bad right?

I would certainly expect a stock that pays a 4% dividend and is able to increase it by 4% every year would be a solid addition to a passive income portfolio

You have probably never heard about at least half of these names and actually 3 of them are electricity providers. One of the names is also part of my 4 2011 stock picks.

Here are the 8 names:

Dominion Resources Inc/VA (D): Company that evolves in the Electric-Integrated sector

Entergy Corp (ETR): Company that evolves in the Electric-Integrated sector

Kimberly-Clark Corp (KMB): Company that evolves in the Consumer Products-Misc sector

Lockheed Martin Corp (LMT): Company that evolves in the Aerospace/Defense sector

Microchip Technology Inc (MCHP): Company that evolves in the Electronic Compo-Semicon sector

Reynolds American Inc (RAI) : Company that evolves in the Tobacco sector

Southern Co (SO): Company that evolves in the Electric-Integrated sector

Ventas Inc (VTR): Company that evolves in the REITS-Health Care sector

[table “220” not found /]

Many of these stocks certainly look very attractive and while I would probably exclude the 3 names that have a payout ratio over 100%, the 5 other names, on the surface look like solid dividend payers. You can take a look at the charts for each of them here:

Disclosure: No positions on these names

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