As we see it, dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplant low risk, low yielding Treasury and fixed-income alternatives. Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend growth. Many stocks increase dividends over time, helping to offset the effects of inflation.
Farmers & Merchants Bancorp Inc. (FMAO) is currently shelling out a dividend of $0.21 per share, with a dividend yield of 3.02%. This compares to the Banks - Northeast industry's yield of 2.34% and the S&P 500's yield of 1.8%. The company's annualized dividend growth in the past year was 16.67%. Independence Realty Trust (IRT) is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.52% compared to the REIT and Equity Trust - Residential industry's yield of 3.57% and the S&P 500's yield. The annualized dividend growth of the company was 16.67% over the past year. Currently paying a dividend of $0.33 per share, Unum (UNM) has a dividend yield of 3.13%. This is compared to the Insurance - Accident and Health industry's yield of 2.52% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 10%.
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