Dividends4Life: 4 Consistently High Paying Dividend Stocks With Growth Potential

The trade off between growth and dividends makes it difficult to find stocks with both a high payout ratio and solid growth prospects. The more a company pays out in dividends, the less it has to reinvest in growth. Management must be very efficient with its capital allocation policies to have both a high dividend payout ratio and solid growth prospects. There is less room for error. Finding businesses that consistently pay steady or rising dividends and have safe operations is difficult. Strong competitive advantages in the business world are rare. There are only around 180 stocks that have paid steady or increasing dividends for 25+ years.

Businesses with long dividend histories have proven the stability of their operations: AT&T stock currently offers investors a 5.2% dividend yield. This is more than double the S&P 500’s current 2.4% dividend yield. Verizon (VZ) is the leader in the United States wireless industry. Verizon controls 34% of the wireless market in the U.S. -AT&T (NYSE:T) controls another 31%. Philip Morris (PM) is the largest tobacco company in the world based on its $139 billion market cap. Philip Morris has 28.7% global cigarette market share (excluding the United States & China). Caterpillar (NYSE:CAT) is the global leader in earth moving equipment manufacturing.

Source: Guru Focus

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