Best Ideas 2013: Buy Dividend Stocks

Sam Stovall, chief equity strategist S&P Capital IQ. Buy S&P high-yield dividend aristocrats ETF (SDY). Seen by many as a stock market historian, Sam Stovall has a thing for exchange-traded funds. In a world of record-low interest rates and continuous uncertainty, S&P Capital IQ’s chief equity strategist chooses safe, yet juicy dividend stocks. “The aristocrats consist mainly of large cap stocks all of which that have increased their dividends annually for the last 20 years,” explained Stovall.

Despite dividend stocks being a crowded traded these days, Stovall believe investors should pay for quality: the aristocrats feature stocks with controlled price-to-earnings ratios, safe payout ratios, and a yield between 3% and 3.25%. “It’s a good way to play equities without going too far out the risk curve.”

Source: Forbes

Related Articles:
- Warning Signs of an Imminent Dividend Cut
- 7 Higher-Yielding Consumer Stocks To Build Your Yield
- 2 High-Yield Investments To Increase Income While Waiting On Dividend Growth
- 6 Healthcare Dividend Stocks For A Healthy Portfolio
- 11 Low-Debt, Higher-Yielding Dividend Stocks