The CAPS Screen: 10 Dividend Dynamos

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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Allied Irish Banks, plc. (ADR)

AIB Down! $24.04 -1.62 (-6.31%) 4:01 PM
CAPS Rating:
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41 Underperforms
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