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Welcome to Dividend Stocks Research
Your premier site for Rankings and
Reviews of the best dividends stocks
around. For more info on dividend stocks
please visit our website
DividendStocksResearch.com
Hi, My name is Aaron and I‘m with
Dividend Stocks Research, today were
reviewing our recently published article…
High Dividend Stocks Revealed
Here on the beach in Southern California I
love to watch the tide.
All thebizarre forces at play, gravitational
forces triggered by the moon, the sun,
and the earth’s rotation... much more
refreshing and inspiring than a stock
chart.
But even with their predictability, the tides
are as mysterious as the stock market,
and if the mysteries of the stock market
don’t keep us humble, nothing will.
It’s like John Bogle, founder of Vanguard
Funds, says...
“Who knows what will do best? I don't
even know anybody who knows anybody
who does.“
So we get up each day and give it our best
shot.
We study the work of investors who
achieve success, guys like Burton Malkiel.
In 1973, the Princeton Economics
Professor wrote a wonderful book called
“A Random Walk Down Wall Street.”
Profesor Malkiel is living proof that Ivy
League economics professors aren’t all a
bunch of stuffed shirts. He once wrote...
“If you bought $1,000 worth of Nortel
stock one year ago, it would now be worth
$49. If you bought $1,000 worth of
Budweiser (the beer, not the stock) one
year ago,
drank all the beer, and traded in the cans
for the nickel deposit, you would have
$79. My advice to you…start drinking
heavily.”
So when we head off in search of the best
dividend stocksfor high yield, we check
our egos at the door. We try to discipline
ourselves to stick to the rules we figure
will keep us out of trouble.
I’ve got a collection of these rules,
including a handful of dividend investing
secrets that work well when it comes to
protecting your money.
High Dividend Stocks For The Careful
Investor
You should search for high dividend
stocks with extreme care.
There’s so much that can go wrong,
especially with the dividend stocks where
a company is under stress to pay the
dividend.
This is why you always want to watch the
dividend payout ratio. The lower, the
better.
High dividend stocks usually haul the
dangerous baggage of high dividend
payout ratios.
So when you look at the highest dividend
paying stocks, and you find one with a
dividend payout ratio of less than 30 or
40%, you’ve got the green light to look at
the stock more carefully.
It’s easy to come up with a list of the
highest yield dividend stocks. It’s tougher
to find carve out the stocks with decent
dividend payout ratios.
Let me show you how easy it is to find
the highest yielding stocks.
Just do a Google search and you’ll have
all kinds of dividend stocks. Most of them
will bring
Professor Malkiel’s advice to mind.
Here’s a prime example.
Meet The High Dividend Stock that Pays
An 86.5% Yield
Earlier this summer I was checking out
North Atlantic Drilling Limited $NADL. It
was paying a 66.2% yield.
These days, the yield is 86.5%.
Tomorrow? Who knows if $NADL will
even be around.
North Atlantic Drilling was trading at $9.65
a year ago. Now it’s at $1.05.
No wonder the yield is so high.
One of three things willhappen. North
Atlantic Drilling cuts the dividend, the
stock price edges back up which pulls the
yield back down, or the company goes out
of business.
Like any of those possibilities? Any other
scenarios you can think of? Well, the
stock might continue to trade around a
dollar and your yield might still be secure,
but who knows how long this could last?
Dividend stocks like North Atlantic Drilling
pump your portfolio full of risks you don’t
have to take.
And here’s another risk you don’t have to
take.
Avoid High Dividend Stocks That Don’t
Have A History
Track records matter. A company that
manages to pay a dividend through good
times and bad deserves our respect.
No wonder investors love the S&P 500
Dividend Aristocrats, the stocks that have
been paying growing dividends for at
least 25 years.
But they can be expensive for dividend
investors.
The other day I checked to see which
Aristocrats are trading near their highs for
the past year.
AT&T $T, Cincinnati Financial $CINF,
Kimberly-Clark $KMB, and Pepsico
$PEP.... they’re all riding high right now.
They all pay a dividend of more than 2.5%.
And they all have a history... Cincinnati
Financial has been paying growing
dividends since Eisenhower was in the
White House.
Kimberly Clark has been paying dividends
since Nixon was in the White House.
But here’s the thing.
The beauty of compounding turns low
yield or modest yield into high yield.
Albert Einstein called compounding, “The
most powerful force in the universe.”
This compounding gives you two ways to
get the high yield you’re looking for.
First, you have the payments of the
dividends piling up. Reinvest those
dividends, you have more shares of your
stock, and that’s the first way you profit
from compounding.
But don’t forget you actually have two
compounding factors at work.
The second one is the growth of the
dividend itself.
The dividend growth rate for S&P 500
stocks in 2014 was 12.64%.
Granted, 2014 was a very good year. In
2001 and in 2010 we saw negative growth
rates for dividend payments. But over the
long haul you’ll get good growth... about
5%.
(Keep in mind that 5% is not adjusted for
inflation.)
So when you pick up a dividend stock
that’s paying a low yield, the yield on day
one isn’t the yield you’re paid for as long
as you own the stock.
With dividend growth and your reinvested
dividends, it grows at a good clip.
And you also make money from the
growth in your share price.
That’s why you actually wind up with a
high yield when you don’t go looking for
it.
The High Dividend Stock Nightmare
There’s a reason why companies like
North Atlantic Drilling Limited pay
unbelievable yields.
They’re in trouble.
Look at how the North Atlantic Drilling
stock has been doing...
Sure... an 86.5% yield is great. As long as
it’s paid.
And as long as the stock you bought to
get that yield doesn’t lose 90% of its value
in a year.
Want More from
Dividend Stocks Research?
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dividend stocks?
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High Dividend Stocks For The Careful Investor

  • 1.
  • 2. Welcome to Dividend Stocks Research Your premier site for Rankings and Reviews of the best dividends stocks around. For more info on dividend stocks please visit our website DividendStocksResearch.com
  • 3. Hi, My name is Aaron and I‘m with Dividend Stocks Research, today were reviewing our recently published article…
  • 5. Here on the beach in Southern California I love to watch the tide. All thebizarre forces at play, gravitational forces triggered by the moon, the sun, and the earth’s rotation... much more refreshing and inspiring than a stock chart.
  • 6. But even with their predictability, the tides are as mysterious as the stock market, and if the mysteries of the stock market don’t keep us humble, nothing will. It’s like John Bogle, founder of Vanguard Funds, says...
  • 7. “Who knows what will do best? I don't even know anybody who knows anybody who does.“ So we get up each day and give it our best shot.
  • 8. We study the work of investors who achieve success, guys like Burton Malkiel. In 1973, the Princeton Economics Professor wrote a wonderful book called “A Random Walk Down Wall Street.”
  • 9. Profesor Malkiel is living proof that Ivy League economics professors aren’t all a bunch of stuffed shirts. He once wrote...
  • 10. “If you bought $1,000 worth of Nortel stock one year ago, it would now be worth $49. If you bought $1,000 worth of Budweiser (the beer, not the stock) one year ago,
  • 11. drank all the beer, and traded in the cans for the nickel deposit, you would have $79. My advice to you…start drinking heavily.”
  • 12. So when we head off in search of the best dividend stocksfor high yield, we check our egos at the door. We try to discipline ourselves to stick to the rules we figure will keep us out of trouble.
  • 13. I’ve got a collection of these rules, including a handful of dividend investing secrets that work well when it comes to protecting your money.
  • 14. High Dividend Stocks For The Careful Investor
  • 15. You should search for high dividend stocks with extreme care. There’s so much that can go wrong, especially with the dividend stocks where a company is under stress to pay the dividend.
  • 16. This is why you always want to watch the dividend payout ratio. The lower, the better. High dividend stocks usually haul the dangerous baggage of high dividend payout ratios.
  • 17. So when you look at the highest dividend paying stocks, and you find one with a dividend payout ratio of less than 30 or 40%, you’ve got the green light to look at the stock more carefully.
  • 18. It’s easy to come up with a list of the highest yield dividend stocks. It’s tougher to find carve out the stocks with decent dividend payout ratios. Let me show you how easy it is to find the highest yielding stocks.
  • 19. Just do a Google search and you’ll have all kinds of dividend stocks. Most of them will bring Professor Malkiel’s advice to mind. Here’s a prime example.
  • 20. Meet The High Dividend Stock that Pays An 86.5% Yield
  • 21. Earlier this summer I was checking out North Atlantic Drilling Limited $NADL. It was paying a 66.2% yield. These days, the yield is 86.5%. Tomorrow? Who knows if $NADL will even be around.
  • 22. North Atlantic Drilling was trading at $9.65 a year ago. Now it’s at $1.05. No wonder the yield is so high.
  • 23. One of three things willhappen. North Atlantic Drilling cuts the dividend, the stock price edges back up which pulls the yield back down, or the company goes out of business.
  • 24. Like any of those possibilities? Any other scenarios you can think of? Well, the stock might continue to trade around a dollar and your yield might still be secure, but who knows how long this could last?
  • 25. Dividend stocks like North Atlantic Drilling pump your portfolio full of risks you don’t have to take. And here’s another risk you don’t have to take.
  • 26. Avoid High Dividend Stocks That Don’t Have A History
  • 27. Track records matter. A company that manages to pay a dividend through good times and bad deserves our respect. No wonder investors love the S&P 500 Dividend Aristocrats, the stocks that have been paying growing dividends for at least 25 years.
  • 28. But they can be expensive for dividend investors. The other day I checked to see which Aristocrats are trading near their highs for the past year.
  • 29. AT&T $T, Cincinnati Financial $CINF, Kimberly-Clark $KMB, and Pepsico $PEP.... they’re all riding high right now. They all pay a dividend of more than 2.5%.
  • 30. And they all have a history... Cincinnati Financial has been paying growing dividends since Eisenhower was in the White House. Kimberly Clark has been paying dividends since Nixon was in the White House. But here’s the thing.
  • 31. The beauty of compounding turns low yield or modest yield into high yield. Albert Einstein called compounding, “The most powerful force in the universe.” This compounding gives you two ways to get the high yield you’re looking for.
  • 32. First, you have the payments of the dividends piling up. Reinvest those dividends, you have more shares of your stock, and that’s the first way you profit from compounding.
  • 33. But don’t forget you actually have two compounding factors at work. The second one is the growth of the dividend itself.
  • 34. The dividend growth rate for S&P 500 stocks in 2014 was 12.64%.
  • 35. Granted, 2014 was a very good year. In 2001 and in 2010 we saw negative growth rates for dividend payments. But over the long haul you’ll get good growth... about 5%. (Keep in mind that 5% is not adjusted for inflation.)
  • 36. So when you pick up a dividend stock that’s paying a low yield, the yield on day one isn’t the yield you’re paid for as long as you own the stock.
  • 37. With dividend growth and your reinvested dividends, it grows at a good clip. And you also make money from the growth in your share price. That’s why you actually wind up with a high yield when you don’t go looking for it.
  • 38. The High Dividend Stock Nightmare
  • 39. There’s a reason why companies like North Atlantic Drilling Limited pay unbelievable yields. They’re in trouble. Look at how the North Atlantic Drilling stock has been doing...
  • 40.
  • 41. Sure... an 86.5% yield is great. As long as it’s paid. And as long as the stock you bought to get that yield doesn’t lose 90% of its value in a year.
  • 42. Want More from Dividend Stocks Research? Follow us on Social Media
  • 43. Want more FREE information on dividend stocks? DividendStocksResearch.com Get Your FREE Report Now
  • 44. What You MUST Do to Never Run Out of MONEY in Retirement! CLICK HERE READ THIS FREE REPORT!