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
| Ticker | Name | Price | Dividend Yield | Return MTD | Payout Ratio | Dividend 1Y growth | Dividend 5 year growth |
|---|---|---|---|---|---|---|---|
| D | Dominion Resources Inc/VA | 42.72 | 4.61 | 2.87 | 80.67 | 4.57 | 6.43 |
| ETR | Entergy Corp | 70.83 | 4.69 | -0.58 | 46.86 | 8 | 8.45 |
| KMB | Kimberly-Clark Corp | 63.04 | 4.19 | 2.94 | 53.01 | 10 | 7.96 |
| LMT | Lockheed Martin Corp | 69.91 | 4.29 | 2.75 | 30.03 | 12.82 | 20.25 |
| MCHP | Microchip Technology Inc | 34.21 | 4.03 | 2.78 | 115 | 26.38 | 30.68 |
| RAI | Reynolds American Inc | 32.62 | 6.01 | 7.03 | 104.99 | 6.67 | 11.87 |
| SO | Southern Co | 38.23 | 4.76 | 1.35 | 83.32 | 4.04 | 4.09 |
| VTR | Ventas Inc | 52.48 | 4.08 | 3.48 | 161.44 | 4.39 | 8.25 |
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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