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11/8/11

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Sec e Yo

e Wi h 11 Rock-Solid Di idend S ock

Face it, ou want it all. You want to have our cake and eat it too. You want the reliable income and stabilit that dividend-pa ing stocks provide, but ou also want to beat the market. Sound like a pipe dream? It's not. According to Ned Davis Research, between 1972 and 2010, dividend-pa ing stocks returned 8.6% versus just 1.4% for companies that didn't pa a dividend. That's an astonishing outperformance that means the difference between turning a $100,000 portfolio into $2.4 million versus just $174,000. And for those worried about the storm clouds in toda 's global economic picture, Ned Davis also showed that during periods of market decline between 1970 and 2000, dividend pa ers outperformed their sting counterparts b 1.5% per month.

Here's wh the trounce the market so impressivel


For one, since dividends are paid in cash, when ou invest in a dividend-pa ing stock ou can be more confident that the compan ou're investing in actuall makes cold, hard cash. That ma sound simplistic, but man companies report accounting profits without actuall banking an cash. In addition, the beaut of man dividend stocks is the long-term dependabilit of the companies backing them. This allows investors to take advantage of compounding returns over long periods of time. Long-time dividend investors are surel on board with Albert Einstein, who supposedl called compound interest "the most powerful force in the universe."

Back b popular demand


Last ear, we offered readers the opportunit to download a dividend-focused special report that delivered a 13-stock dividend portfolio. That report was downloaded b almost half a million investors across the globe! Due to the overwhelming popularit of that report, we decided to revisit the wonderful world of dividends to bring ou a new, read -to-trounce-the-market dividend-stock portfolio. In this report ou'll find 11 dividend stocks that will not onl let ou sleep like a bab , but can also help put our portfolio on the path to market-beating returns. While ou certainl don't have to bu all 11 of these to get the most out of the power of dividends, these have been specificall chosen from a range of industries and a range of dividend strategies so that, taken as a group, the create a complete dividend portfolio. Click below to get started with five of the dividend world's biggest rock stars.
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5 All-A o nd Di idend Rock S a

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11/8/11

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5 All-A o nd Di idend Rock S a


N [NYSE: PG] I S&P ." I Y , ? .B 25a d . , "D -- " A ' ." T .N , 25 R . S ' &P ' .T ' -S , P oc e & Gamble

Mee he a i oc a
A I A T T F " ," .T , , D .A ' . 10-Yea A e age Ann al Di idend Go h 7.1% A , 500 , D A S&P 500 . . , 42 , . .

Compan

ine

Di idend Yield

E onMobil [NYSE: XOM] John on & John on [NYSE: JNJ] Pep iCo [NYSE: PEP] P oc e & Gamble [NYSE: PG] B

2.6%

D 3.6% 13%

3.3%

13%

3.3%

10.9%
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11/8/11

Fool.com: A Motley Fool Special Report

Wal-Ma [NYSE: WMT]

Lo -p ice e ail kingpin

2.8%

16.3%

Source: Capital IQ, a Standard & Poor's compan .

E onMobil ell p od c -- oil and na al ga -- ha a e commodi ie . Fo he mo pa , he c de oil ha E on p ll o of he g o nd i he ame a he oil ha , a , Che on [NYSE: CVX] doe . So ha make E on o g ea ? I ' he hee cale ha he compan ha , b i ' al o a long hi o of i e capi al alloca ion and in e men in echnolog o keep i a he fo ef on of he ind . And beca e he compan con in e o p i mone o o k in place he e i can ea n high e n , he e ho ld be mo e good ime ahead fo in e o . Man heal hca e companie ha foc on pa en ed d g face g a e p oblem beca e he ' e a ing do n he ba el of big pa en e pi a ion . No o a J&J. The compan ha a highl di e ified b ine ha pan con me b and like T lenol all he a o p od c ha geon el on in he ope a ing oom. A highl inno a i e compan , decade of cce ha e p o en J&J' me le in a ing a he fo ef on of he heal hca e ind . Abo e, Pep iCo a e p po el li ed a a "snacks and be e age gian ." Beca e he compan ha Pep i in i name, i ' ea o fo ge ha i al o ho e he ma i e F i o-La nack di i ion. Heck, i ma al o be ea o fo ge ha he Ga o ade empi e i PepsiCo's Ga o ade empi e. S e, Coca-Cola [NYSE: KO] i a fan a ic compan , b i 'd be a big mi ake o o e look he migh and a ing po e of Pep iCo. Gille e, Tide, Pampe , O al-B, M . Clean, C e , Co e Gi l, Tampa , Old Spice. If o kno he e b and , hen o kno P oc e & Gamble. Since 1837, P&G ha been c ea ing p od c ha con me an o e. And e again. And e again. And e... Ok, o ge he pic e. Toda , he compan i ill inno a ing and ol ing ne p oblem , e en hile i con in e o ca h in on i blockb e b and in de eloped ma ke and b ing hem o ne c ome in de eloping ma ke . Finall , hen i come o p ice, Wal-Ma can' be bea . When o con ide ha compe i i e ad an age i all abo a compan ' abili o b ing mo e al e o i c ome han compe i o , o eali e ha a big deal hi i . Wal-Ma ill con in e o domina e he e ail land cape impl beca e i c ome a e con i en l able o e ch hei dolla f he in Wal-Ma ' o e .

Yo

po folio,

a ing...
op he e. Yo a abo e, b

In c ea ing o di idend po folio, o co ld go i h he fi e ock abo e and migh be a bi nde -di e ified, b o o ldn' be in bad hape.

Click belo o e eal o "di idend di a ." The ' e mo e empe amen al han he can deli e in a big a .

2 High-Yield Dividends Divas You Can Bu


When o ' e go a compan ha can con i www.fool.com/newsletters/18/sfr/34/PrintAll.htm?email=montague.boyd@u en l g o i di idend b do ble-digi pe cen age
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When o ' e go a compan ha can con i en l g o i di idend b do ble-digi pe cen age e e ea -- a mo of he fi e companie o j ead abo ha e -- a 2% di idend can go a long a . B he e a e ome companie o he e ho e ock ha e ield ha make ha 2% pa o look like a joke. Some ha e ield h ee, fi e, o e en 10 ime ha o can c en l ge f om a 10ea T ea bond. Befo e o ge oo e ci ed abo he e ma i e ield , i ' impo an o nde and ha a h ge di idend i no a f ee l nch. The di idend ield i igh o in he ligh of da he e e e one can ee i , o if i e e o ob io ha he ield a a eal, in e o o ld flock o he ock and he ield o ld fall. In ead, he ock ha ha e he bigge ield a e of en ock ha in e o a e looking a a kance. In e o ma belie e he e a e i k o he b ine e behind he ock ha ma make i diffic l fo hem o keep p hei di idend .

Some, not all


While he c o d ma be on a ge i h hei pe imi ic a mp ion in ome ca e , in o he he be o el mi aken and mi ing o on ome eall g ea di idend . No ha o di idend po folio ha a olid ba e of fi e ock p i h o high- ield di a ha co ld pice p o e n . a Di idend A i oc a , le ' ja i

AT&T [NYSE: T]
A 6% di idend ield f om a compan like AT&T? Yo ' e go o be kidding... To be e, AT&T' ep a ion ha aken ome ding hank o c ome complain abo cell e ice, b he compan ha con in ed cce f ll adding ne i ele c ome . I ' no igno ing he p oblem ei he a i ' been making ignifican in e men in imp o ing i ne o k. Mean hile, a ma phone become an e e -mo e-po e f l h b fo con me o comm nica e, hop, and o he i e in e ac , e ice p o ide like AT&T ill a in demand a p o ide of he i ele high a ha he da a a el o e . And le ' no fo ge ha i ele compan ' 2010 e en e. Tho b oadband and o he da a e h o gh offe ing like AT&T Ui n' AT&T' onl b ine . In fac , i a onl 43% of he gh i eline phone e ice ma be a lo l -d ing b ine , ice a en' , and AT&T i b ilding onge c ome ela ion hip e e, hich offe b ndled digi al TV, in e ne , and oice e ice .

C en l , ha fa 6% di idend come f om AT&T pa ing o le han half of i ea ning . In o he o d , ake ha con e a i e pa o a io along i h he able b ine , and i e look like Ma Bell' di idend i a good b .

New York Communit Bancorp [NYSE: NYB]


If o ha n' bank gi e an di idend g o h, o ma an o look el e he e -- Ne Yo k Comm ni Banco p ai ed i di idend ince 2005. Ho e e , i h in e o ne o abo he econom and in pa ic la , M . Ma ke ha knocked NYCB' ock do n o a le el he e i $1 di idend o a e io 8.4% ield. ha e o e a ide mone ba ed on ho m ch of
4/10

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11/8/11

Fool.com: A Motley Fool Special Report

T , B -

NYCB. F -

, .T , . .I . , N Y NYCB' C , ' , L V NYCB

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Seven down...
Y C .N . . -" "

2 Di idend Up-and-Come
T . T , ,

Yo Don' Wan o Mi
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Better than Goldman


A GS] .B - ' . . I' G ' , Morgan Stanle [NYSE: MS], G . . .I . A G www.fool.com/newsletters/18/sfr/34/PrintAll.htm?email=montague.boyd@u , '
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Goldman Sachs [NYSE: . I' G ' -

Greenhill & Co. [NYSE: GHL] ( ) JPMorgan Chase [NYSE: JPM]. B W ?B I U.S. .T , ,G G no

11/8/11

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A .T T [NYSE: AIG] W [NYSE: BRK-B] T

G ,G , AXA P Citigroup [NYSE: C], ' , ' AT&T' F ' .A ' G ' , .T E

' V.F. Corp [NYSE: VFC] $2 $1.7 U.S. T AIG T-M USA, Berkshire Hathawa [NYSE: BRK-A] . , ' .

Not a minor pla er


W , . M , . E Owens & Minor [NYSE: OMI]. O 1,600 , 4,400 F 2010, 1997 , 2010, 178%. A ?O . .F 11.2%. B 2000 &M 2005. M C &M .T 220,000 .I 98% , , , , .T , , ,

Almost there!
A , T , G M . F .B , Motle Fool Stock Advisor . , , .B ' ' D . .B , -

T T

2 Dividend Stocks to Bu Right Now


M F D T G
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