When I worked for Wall Street investment banks, friends
would frequently ask me for stock tips, thinking I might have inside
information they could trade on. I didn’t.
For my investments, I actually stayed with broad Index funds, because I
had to report my holding regularly to an internal review committee to make sure I wasn’t investing based on
insider information.
Later I learned to focus on companies with a history of
growing dividends. At least ten years of growing dividends was good (dividend
champions). 25 years would be better (dividend aristocrats). But the most
select list is that small set of quality stocks from companies that have paid a
growing dividend for at least 50 years or longer, the Dividend Kings.
And for me, they must have a dividend reinvestment plan or
DRIP that allows for a small monthly investment. That minimum investment could
be as little as $10 a month, so anyone can get started.
Each of the stocks highlighted below fit the bill to make it
easy to get started using their dividend reinvestment plan.
Start with the Dividend Kings, short list of stocks (of only
31 stocks) and you will be selecting from quality companies that will pay you a
growing income.
There is no easier way to pick out a winning stock to hold
for the long term than the limited number of stocks on the list of dividend
kings.
What is a Dividend King? Dividend kings are a select list of
stocks with 50 or more consecutive years of dividend increases, making this a
rather exclusive list of companies worth investigating. This list was Initially
created in 2010 by the guy who runs the Dividend Growth Investor website and
newsletter. You can also find a complete list with up-to-date analysis of each
stock in the list at SureDividend.com.
Dividend Kings include both mega corporations and smaller
lesser-known companies. For dividend payout longevity and a stream of
increasing dividend income, it would be hard to find a better place to start.
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