The CAPS Screen: 10 Dividend Dynamos

Recs

14

Dividend investing is a tried-and-true strategy for building long-term wealth. A company that maintains a stable and healthy dividend is one that will continue to pay you over time regardless of how the market zigs and zags. After all, most of the stock market's gains in recent decades have come from dividends.

With this in mind, I used our new CAPS screening tool to look for companies that pay a strong dividend. Below are 10 companies with dividend yields of 4%. They also have:

  • Market caps greater than $1 billion.
  • Five-star ratings, the highest possible, from our CAPS community.

Remember, in the first year for which we have data, five-star companies outperformed with an average return of nearly 28%.

Company

Share Price

Sector

Market Cap

Allied Irish Banks (NYSE: AIB)

$42.90

Financial

$18.9 billion

Altria Group (NYSE: MO)

$21.70

Consumer Goods

$45.8 billion

Apollo Investment (Nasdaq: AINV)

$16.55

Financial

$2.0 billion

CPFL Energia

$71.64

Utilities

$11.5 billion

Diana Shipping (NYSE: DSX)

$30.84

Services

$2.3 billion

Eni SpA

$76.94

Utilities

$56.3 billion

Health Care REIT

$50.19

Financial

$4.3 billion

iShares Dow Jones Select Dividend Index (NYSE: DVY)

$60.09

Financial

$5.9 billion*

Penn West Energy (NYSE: PWE)

$30.71

Financial

$11.5 billion

Southern Copper (NYSE: PCU)

$121.25

Basic Materials

$35.7 billion

Data from Motley Fool CAPS and Yahoo! Finance as of April 25. *Net assets.

Remember, this screen is only a starting point in the research process. When selecting dividend-payers, Fools know it's important to make sure a company has sufficient free cash flow to sustain and grow its dividends for years to come.

Come and join us on Motley Fool CAPS to dig into these companies further. Let our 100,000-strong (and counting) CAPS community help you make better stock selections.

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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.

  • Report this Comment On September 11, 2009, at 12:01 PM, FOOLSBILLY wrote:

    on 9/11/2009. i love to look at the articles from a year or so back. it keeps the newest articles in perspective!!! imagine if you had bought aib or pcu !!!

  • Report this Comment On October 07, 2009, at 2:59 PM, michlav1 wrote:

    Well, the articles says it's only a starting point and one must do their own due diligence. It's only a screen after all.

    And, if you follow the Fool's philosophy, you shouldn't be comparing it for 5 years, 3 years at the earliest.

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Related Tickers

11/30/2009 4:02 PM
PWE $17.57 Down -0.18 -1.01%
Penn West Energy T… CAPS Rating: *****
DVY $42.88 Up +0.11 +0.26%
iShares Dow Jones… CAPS Rating: *****
AIB $4.76 Down -0.14 -2.86%
Allied Irish Banks… CAPS Rating: ****
AINV $9.62 Up +0.25 +2.67%
Apollo Investment… CAPS Rating: ****
MO $18.81 Down -0.19 -1.00%
Altria Group, Inc. CAPS Rating: ****
DSX $15.55 Down -0.41 -2.57%
Diana Shipping, In… CAPS Rating: *****
PCU $34.84 Up +0.22 +0.64%
Southern Copper Co… CAPS Rating: ****

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Term Of The Hour

Dividend discount model: The dividend discount model is a means of estimating (not calculating) the value of company based on its dividend payouts, assuming certain increases to the dividend and growth in the company.

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