Monday, June 29, 2015

5 Dividend Stocks To Beat The Wall Street Giants

Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge. Throw in some illegal insider trading from big names in the industry and it leaves you wondering what chance does a small individual investor have?

Not much of a chance if you let the Wall Street players define the rules. However, you might just slay the giant if you define the rules. Benjamin Graham is quoted as saying "the stock market resembles a huge laundry in which institutions take in large blocks of each other's washing ... without rhyme or reason."

When it comes to investing, patience is a lost art. Investors are free to choose their holding period. Instead of trying to make trying to make a few cents on hundreds of trades, I prefer to buy and hold quality blue chip dividend growth stocks. Consider the following stocks:

3M Co. (MMM) provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 57 consecutive years. Yield: 2.6%

PepsiCo, Inc. (PEP) is a major international producer of branded beverage and snack food products. The company has paid a cash dividend to shareholders every year since 1952 and has increased its dividend payments for 42 consecutive years. Yield: 3.0%

Johnson & Johnson (JNJ) is a leader in the pharmaceutical, medical device and consumer products industries. The company has paid a cash dividend to shareholders every year since 1944 and has increased its dividend payments for 53 consecutive years. Yield: 3.1%

Emerson Electric Co. (EMR) designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial and consumer markets around the world. The company has paid a cash dividend to shareholders every year since 1947 and has increased its dividend payments for 59 consecutive years. Yield: 3.2%

Exxon Mobil Corp. (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. The company has paid a cash dividend to shareholders every year since 1882 and has increased its dividend payments for 33 consecutive years. Yield: 3.4%

If your goal is to build an ever-increasing revenue stream from income investments, the above seven dividend stocks will give your income a boost over time. The key is to wait for the right entry point and let time take care of the rest.

Full Disclosure: Long MMM, PEP, JNJ, EMR, XOM in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

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2 comments:

  1. Great list of dividend stocks. I bought JNJ recently as well. What do you think of CVX? They also have a great history of paying and raising dividends.

    BTW, you have a small typo on your last paragraph, "the above seven dividend stocks will give your income a boost over time." I think you mean "five". :)

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  2. Great List. I would also list CVX, UNP and AAPL. The first two have been beaten down unfairly and the third one's only limit is the sky.

    Respectfully,
    Dennis McCain
    dennismccain.weebly.com

    ReplyDelete

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