Quiz time, sports fans: What did the Edmonton Oilers of the '80s and the Chicago Bulls and Dallas Cowboys of the '90s have in common? (And exactly how can this help me with my portfolio?)
It wasn't just that they had the best individual players of the time -- Gretzky, Jordan, and 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? Nope. Because that's what carefully chosen dividend-paying stocks can offer.
Be 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.
Bank of America
Identify new talent
With that last thought in mind, I'd like to introduce you to our brand-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. In fact, thousands of strategies, plays, and hunches are allowed to vie for supremacy. And, just like 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 five-star ratings:
Company |
Yield |
---|---|
Grupo
Aeroportuario del Pacifico |
3.1% |
Turkcell
Iletisim Hizmetleri |
3% |
American Electric Power |
3.8% |
Biovail |
3.2% |
Aluminum Corp. of China |
5.15%* |
Stake your claim
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 to the system. I'll get you started with a little bit about one company here that I believe merits extra attention. Aluminum Corp. of China is the third largest aluminum company in the world, and the single largest in China itself. Its dividend yield is appealing in and of itself, but the company also seems well-positioned to take advantage of the massive construction boom that will occur within the rapidly growing economy. I encourage you to continue looking at this company, as well as others offered to you in CAPS.
The great thing about being a dividend investor is that your portfolio won't be shocked by the market's most volatile stocks. Instead, it will aim to outperform the market on the back of dependable, consistent cash flows.
So, to conclude this extended sports metaphor, 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 like I do, it's probably because they're so darn good, so darn often.
Fool contributor Nick Kapur is not a professional athlete, but wishes he were just so he could continue to refer to himself in the third person. He also owns none of the shares mentioned above. Grupo Aeroportuario is a Motley Fool Hidden Gems selection. The Fool has an ironclad disclosure policy.