Consider this: If you bought shares of Johnson & Johnson fifteen years ago, you would have been buying a stock offering a $0.72 dividend annually, per share. At the time, that equated to about a 1.3% yield. But today, the stock offers up $3.20 annually in dividends. In other words, if you had held this stalwart through the years, you'd be getting a nice 5.6% yield today on your cost basis.
Dividend stocks are the cornerstones of a well-constructed retirement portfolio. But when you pay for shares, you're buying more than the current yield -- you're buying the potential for greater and greater payouts over time. The three stocks I'm discussing today have the same potential (as JNJ) for dividend growth: Lowe's (NYSE:LOW) is the part of the duopoly in America's home improvement industry, with a 17% market share. Clearly, business has been good in the home improvement industry, because the second stock on our list today is paint specialist Sherwin-Williams (NYSE:SHW). Cardinal Health (NYSE:CAH) has slowly become something of a healthcare conglomerate.
Source: Motley Fool
Related Articles:
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
- 7 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
April has time and again proved to be favorable for stocks. But this time around, April has arrived during midterm election, which usually s...
0 comments
Post a Comment
Post a Comment