5 Rock-Solid Dividend Stocks

Posted by The Motley Fool Stock Advisor Special Report

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Bonds and other traditional sources of interest income are still important assets for yield-seeking investors to hold. However, today’s investment environment—a combination of low interest rates, slow growth in developed economies and heightened market volatility—means that investors have to look to a variety of sources to build robust, sustainable income portfolios. Yields from dividend-paying stocks on the whole are attractive, even more so when compared to government bonds. Investing in a high-quality name with strong fundamentals can increase the likelihood that a given investor will continue to be paid dividends. As such here is a list of high quality US divident stocks that the author believes are of extremely High Quality. – Money Talks

5 All-Around Dividend Rock Stars

Not every band is of Rolling Stones caliber, and not every dividend stock is of Procter & Gamble [NYSE: PG] caliber.

 

In fact, there is a special group of dividend stocks that Standard & Poor’s keeps track of that it calls the “Dividend Aristocrats.” These dividend payers don’t just pay a dividend. They’re not just any old company that’s had a few dividend increases. No, these dividend maestros have — as S&P puts it — “followed a policy of increasing dividends every year for at least 25 consecutive years.”

 

Impressed?

 

You should be. Because when a company has a 25-plus year streak of paying and raising its dividend, you better believe investors are feasting on impressive compounding returns.

 

Meet the aristocrats

 

As you might expect, the Dividend Aristocrats are an elite group.

 

In fact, of the 500 companies in the S&P 500 index, only 54 of them currently qualify for the title. And while most of the companies on that list could make solid investments, there are some that stand out above the rest of the pack.

 

The five stocks below are some of the greatest businesses in existence.

 

They each have what we Fools like to call a “moat,” that is, a competitive advantage that allows them to consistently earn above-average returns. Their inclusion on the Dividend Aristocrat list shows their consistent dedication to returning cash to investors. And while it’s tough to find businesses of this quality at bargain-basement prices, all trade at attractive valuations.

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…to read the entire Dividend Report go HERE