Dividends4Life: A 5-Stock Starter Portfolio For Dividend Growth

The term “blue chip” stock is almost a century old, with an origin dating back just prior to 1929’s crash, and related to the highest priced poker chip. Though I don’t think you hear the phrase today as much as you did several decades ago, investors interested in a solid, conservative stock portfolio are still likely to hone in on the market’s blue chips. Although not necessarily a prerequisite, blue chips of today typically pay a dividend. In many, perhaps even most cases, a blue chip dividend will grow on an annual basis. Companies that pay a dependably higher dividend are oftentimes referred to as dividend growth stocks. Dividend growth, in simpler terms, is a more nouveau term for blue chip stock investing in my opinion.

Strategically speaking, some investors may want to own a mix of both strong companies with traditionally inflated valuations, some out of favor names, as well as lesser known names with longer runways for market cap and multiple expansion (small caps). Here is a 5-stock starter portfolio with a mix of names: Cisco Systems, Inc (CSCO), Aircastle Limited (NYSE:AYR), Pfizer Inc. (NYSE:PFE), STORE Capital (NYSE:STOR) and Honeywell International Inc. (NYSE:HON).

Source: Seeking Alpha

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