5 Dynamic Dividend Stocks

Quiz time, sports fans: What do the New York Yankees of the '50s and the Chicago Bulls and Dallas Cowboys of the '90s have in common? (And how exactly can this help you with your portfolio?)

It wasn't just that they had some of the best individual players of the time -- Yogi Berra, Michael Jordan, and Emmitt Smith, respectively -- although that certainly helped. And it wasn't just that they were able to bring home world championship trophies on a regular basis. It was simply that their organizations and performances were consistently excellent.

Consistent excellence is rare anywhere, but imagine seeing it in your portfolio. Impossible? No way! Because that's what carefully chosen dividend-paying stocks can offer.

Build the next investing dynasty
Finding these long-haul outperformers can help you build your fortune, as studies from investing gurus such as Jeremy Siegel have shown time and time again. Finding them for you is precisely what we do at our Motley Fool Income Investor service.

William Wrigley (NYSE: WWY  ) , for example, is up 54% since July 2006, and it currently is rewarding investors with a 1.7% yield. Then there's ONEOK (NYSE: OKE  ) , which has returned 83% since December 2005 on top of a current 3% yield. And while both companies happen to be Income Investor recommendations, you don't need to be a subscriber to get these great gains.

Identify new talent
With that last thought in mind, I'd like to introduce you to our new community intelligence database, Motley Fool CAPS. There, savvy investors help one another identify stocks that can create consistent and substantial growth for any type of investor. That means whether you're a Buffett-esque value investor or a chart-watching technical trader you are welcome to strut your stuff. And, just as in professional sports, the cream inevitably rises to (and stays at) the top.

So what are the best dividend-paying stocks around, according to CAPS? Here are a few dividend picks with high CAPS ratings:

Company

Yield

Coca-Cola (NYSE:KO)

2.3%

Grupo Aeroportuario del Pacifico (NYSE:PAC)

2.3%

Autoliv (NYSE:ALV)

2.4%

Tsakos Energy Navigation (NYSE:TNP)

4.5%

Euroseas (NASDAQ:ESEA)

5.0%

Source: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and CAPS as of Oct. 18, 2007.

I encourage you to join CAPS to learn more about why investors are so bullish on these companies, and perhaps to add your own thoughts. I'll get you started with some thoughts about one company here that may be worth checking out: Grupo Aeroportuario.

Manning the toll booth
If you're a fan of toll booth type businesses like famed investor Warren Buffett is, it's very possible that Motley Fool Hidden Gems pick Grupo Aeroportuario (GAP) is right up your alley. GAP is a group of formerly state-owned airports in Mexico that makes its way by charging passengers and airlines for the privilege of using the facilities, as well as by renting space to restaurants and retailers that want to set up shop in the airports.

The primary driver of GAP's results is passenger traffic, so it's important to know which cities it operates in. While it operates the airports in Guadalajara and Tijuana -- which respectively have the third- and fifth-largest passenger traffic in Mexico -- what is more notable to me is its operations in Puerto Vallarta and Los Cabos. These are both up-and-coming tourist destinations in the heavily visited Mexico, and while they don't yet have the same passenger volume as Cancun (second only to Mexico City in passenger traffic), they probably have more room for growth.

On CAPS, the stock has a fan base 392 Fools, with just 12 players expecting the stock to underperform the market. One of the top players in CAPS, robertvince, likes the tourism angle on GAP and said, "Cheap prices, abundant labor and a willingness to please will make Mexico a top destination for years to come."

You can check out who has been bullish on GAP, as well as chime in with your own thoughts by heading over to CAPS. You may also want to check out a few of the other top-rated dividend payers above while you're there.

And looping back around to conclude my (very) extended sports metaphor, allow me to suggest that dividend stocks will help you turn your portfolio into the dependable New York Yankees, rather than the flash-in-the-pan Florida Marlins. And if you hate the Yankees, it's probably because they're so darn good, so darn often.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 538842, ~/Articles/ArticleHandler.aspx, 9/20/2014 1:59:53 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement