Comments on: Philip Fisher: Warren Buffett’s lesser-known mentor

By: Andrew Peck

Andrew Peck — Sat, 14 Mar 2009 15:24:30 +0000

http://www.thesunsfinancialdiary.com/investing/where-to-find-dividends-a-comparison-of-dividend-paying-etfs-and-stocks/

How to Invest in Dividend-Paying Stocks?
Since long-term qualified dividends are taxed at a much lower rate (at most 15%) than short-term capital gains and interest, it makes sense to add them to our portfolio, even outside the tax deferred accounts.

To invest in companies that pay dividends, we can choose either to buy individual stocks, or purchase a mutual fund or ETF that invest in dividend-paying companies.

ETF’s: Top 10 holdings among the widely held Div ETF’s show lots of overlap. For example, Vanguard High Dividend Yield Index ETF (VYM) and PowerShares Dividend Achievers (PFM) have 8 in common.

Build your own div/gen portfolio:

* Use stocks that are mostly used in the dividend-paying ETFs
* Use stocks that have the highest dividend yield
* Use stocks that pay the most dividends in dollar amount

And the three lists are:

10 mostly used dividend-paying stocks

1. Altria Group (MO) — $3.44 (5.00%)
2. Bank of America (BAC) — $2.24 (4.40%)
3. Pfizer (PFE) — $1.16 (4.30%)
4. Verizon Communications (VZ) — $1.62 (4.00%)
5. Citigroup (C) — $2.16 (4.00%)
6. AT&T (T) — $1.42 (3.60%)
7. Chevron (CVX) — $2.32 (3.00%)
8. General Electric (GE) — $1.12 (3.00%)
9. JPMorgan Chase (JPM) — $1.52 (2.90%)
10. Exxon Mobil (XOM) — $1.40 (1.70%)

10 highest yield dividend-paying stocks

1. MCG Capital (MCGC) — $1.76 (10.00%)
2. Thornburg Mortgage (TMA) — $2.72 (10.00%)
3. Vector group (VGR) — $1.60 (8.70%)
4. Allied Capital (ALD) — $2.56 (8.60%)
5. American Capital Strategi (ACAS) — $3.56 (7.50%)
6. Lexington Corporate Properties Trust (LXP) — $1.50 (7.10%)
7. American Financial Realty Trust (AFR) — $0.76 (7.00%)
8. Istar Financial (SFI) — $3.30 (7.00%)
9. Southern Copper (PCU) — $6.00 (7.00%)
10. Corus Bankshares Inc. — $1.00 (6.10%)

10 highest payout dividend-paying stocks

1. Southern Copper (PCU) — $6.00 (7.00%)
2. American Capital Strategi (ACAS) — $3.56 (7.50%)
3. Altria Group, Inc. (MO) — $3.44 (5.00%)
4. Istar Financial (SFI) — $3.30 (7.00%)
5. Thornburg Mortgage (TMA) — $2.72 (10.00%)
6. Integrys Energy Group (TGE) — $2.64 (4.40%)
7. Comerica (CMA) — $2.56 (4.10%)
8. PNC Financial Services Group (PNC) — $2.52 (3.30%)
9. Embarq (EQ) — $2.50 (3.90%)
10. Progress Energy (PGN) — $2.44 (4.70%)

Demian – According to your Ben Graham value sniffing decoder ring, which of these are also sound & oversold?

That’s a list I’d buy and hold

By: Demian

Demian — Sat, 14 Mar 2009 12:57:29 +0000

Thanks Andrew! I also saw a bunch of the above listed in a stock screen I ran last week (looking at strong fundamentals), and on valuecruncher.com. P&G, McDonalds, 3M, Coke, Pepsi and McGraw Hill, among others. I haven’t done a deep dive into their numbers yet, but perhaps it’s a good time to look at a few of these.

By: Andrew Peck

Andrew Peck — Sat, 14 Mar 2009 03:55:33 +0000

http://dividendsvalue.com/1924/the-best-dividend-stocks-in-the-world/

The following is an aggregate list of 45 U.S. stocks which meet the criteria to be dividend “aristocrats” “achievers” & “champions”

I. S&P 500 Dividend Aristocrats – s&p500 stocks that have increased dividends every year for at least 25 consecutive years. (dividendsvalue.com)

II. US Broad Dividend Achievers™ Index – comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. In addition, Indxis requires that a stock’s average daily cash volume exceed $500,000 per day in the November and December prior to the annual reconstitution date on the last trading date in January. The Index is calculated using a modified market capitalization weighting methodology
(indxis.com)

III. The U.S. Dividend Champions – increased their dividend for at least 25 consecutive years, but, as explained below, the definition was broadened to include additional companies that had paid higher dividends without having increased the quarterly payout in every calendar year. DRIP also decided to follow companies that had increased their dividend for 20-24 straight years, since they are likely to join the 25-year “Champions” soon. (DRIPinvesting.org)

3M Company MMM [Aristocrat] [Achiever] [Champion]
Abbott Laboratories ABT [Aristocrat] [Achiever] [Champion]
AFLAC Inc. AFL [Aristocrat] [Achiever] [Champion]
Air ProductsChemicals APD[Aristocrat] [Achiever] [Champion]
ArcherDanielsMidland ADM [Aristocrat] [Achiever] [Champion]
Automatic Data Processing ADP[Aristocrat][Achiever] [Champion]
BB&T Corporation BBT [Aristocrat] [Achiever] [Champion]
Becton Dickinson and Co. BDX[Aristocrat] [Achiever] [Champion]
Bemis Inc. BMS [Aristocrat] [Achiever] [Champion]
C.R. Bard Inc. BCR [Aristocrat] [Achiever] [Champion]
CenturyTel Inc. CTL [Aristocrat] [Achiever] [Champion]
Chubb Corp. CB [Aristocrat] [Achiever] [Champion]
Cincinnati Financial CINF[Aristocrat] [Achiever] [Champion]
Clorox Company CLX [Aristocrat] [Achiever] [Champion]
Coca Cola Co. KO [Aristocrat] [Achiever] [Champion]
Consolidated Edison ED [Aristocrat] [Achiever] [Champion]
Dover Corp. DOV [Aristocrat] [Achiever] [Champion]
Emerson Electric EMR [Aristocrat] [Achiever] [Champion]
Exxon Mobil Corp. XOM [Aristocrat] [Achiever] [Champion]
Family Dollar Stores FDO [Aristocrat] [Achiever] [Champion]
W. W. Grainger Inc.GWW [Aristocrat] [Achiever] [Champion]
Integrys Energy Group TEG[Aristocrat] [Achiever] [Champion]
Johnson & Johnson JNJ [Aristocrat] [Achiever] [Champion]
Johnson Controls Inc. JCI[Aristocrat] [Achiever] [Champion]
Kimberly Clark Corp. KMB [Aristocrat] [Achiever] [Champion]
Leggett & Platt Inc. LEG [Aristocrat] [Achiever] [Champion]
Eli Lilly & Co. LLY [Aristocrat] [Achiever] [Champion]
Lowe’s Cos. Inc. LOW [Aristocrat] [Achiever] [Champion]
McDonald’s Corp. MCD [Aristocrat] [Achiever] [Champion]
McGraw Hill Cos. Inc. MHP[Aristocrat] [Achiever] [Champion]
PepsiCo Inc. PEP [Aristocrat] [Achiever] [Champion]
Pitney Bowes Inc. PBI [Aristocrat] [Achiever] [Champion]
PPG Industries Inc. PPG [Aristocrat] [Achiever] [Champion]
Procter & Gamble Co. PG [Aristocrat] [Achiever] [Champion]
Questar Corp.. STR [Aristocrat] [Achiever] [Champion]
Rohm & Haas ROH [Aristocrat] [Achiever] [Champion]
Sherwin Williams Co. SHW [Aristocrat] [Achiever] [Champion]
Sigma Aldrich SIAL [Aristocrat] [Achiever] [Champion]
Stanley Works SWK [Aristocrat] [Achiever] [Champion]
State Street Corp. STT [Aristocrat] [Achiever] [Champion]
Supervalu Inc. SVU [Aristocrat] [Achiever] [Champion]
Target Corp. TGT [Aristocrat] [Achiever] [Champion]
V.F. Corp. VFC [Aristocrat] [Achiever] [Champion]
Wal Mart Stores Inc. WMT [Aristocrat] [Achiever] [Champion]
Walgreen Co. WAG [Aristocrat] [Achiever] [Champion]