Investors who need income from their portfolios can find stocks that will both have their share price rise and pay them reliable dividends that will grow over time. Since 2003, the Motley Fool Income Investor service has delivered winning investment ideas to its subscribers, and over that time span, the picks that the newsletter's analyst team has made have outpaced the performance of the S&P 500 stock market index. Below, we'll show you how you can get access to this award-winning service at a discounted price. But first, let's take a closer look at the secret behind Income Investor's market-beating returns and how the service hopes to keep delivering winning picks well into the future.
Finding the best dividend stocks in the market
Motley Fool Income Investor gives its subscribers one stock each and every month that its analysts believe offers the best combination of an attractive share price with the ability to maintain and increase their dividends over time. The Income Investor team uses proprietary valuation methods to find dividend stocks that are undervalued by the broader market community, and it also looks for companies that have a sustainable competitive advantage over rivals in their respective industry.
One of the biggest advantages of Motley Fool Income Investor is that subscribers benefit from many different ways of identifying top dividend stocks. Rather than simply focusing on metrics like dividend yield, Income Investor digs into the fundamentals of a company to see if it has the staying power to keep paying lucrative dividends and grow over the long run.
The secret of Income Investor's success
In particular, Motley Fool Income Investor follows several core guidelines in selecting its recommendations. All recommendations pay a dividend, but they also must have the potential to produce capital gains through share-price appreciation as well. A great management team is a key signal for future success, and the service focuses on mid-cap and large-cap stocks with the financial wherewithal to survive difficult economic times. Finally, recommendations must show a winning business model that can stand up to competition and emerge victorious.
A look at the top picks from the service can give you some insight into how its process takes shape. Several of the best-performing picks from Income Investor are from the energy sector, with Magellan Midstream Partners (NYSE: MMP), ONEOK (NYSE: OKE), and Enterprise Products Partners (NYSE: EPD) having given investors returns of 400% to 775% since their original recommendations. Even with the downturn in the energy sector, all three of these companies have proven their staying power and continue to make lucrative income distributions to their investors.
Motley Fool Income Investor also holds plenty of well-known consumer stocks that have found ways to grow and pay rising dividends. Companies like PepsiCo (NYSE: PEP) and Unilever (NYSE: UL) are just a couple of examples of stocks that have outperformed the broader market while rewarding shareholders with above-average dividend yields over the long run.
How you can use Income Investor to set up your own winning dividend stock portfolio
For new investors, Motley Fool Income Investor makes things easy. Once you subscribe, you'll get immediate access to our list of Buy First Stocks, which are the picks that the service recommends using as a foundation for your dividend stock portfolio. You'll also get their newest recommendations, along with assessments of stocks that are worth holding onto but aren't the best candidates for new money.
Best of all, right now, you can sign up for Motley Fool Income Investor at a special introductory rate. Rather than paying our usual price, take advantage of this offer and pay a significant discount to list price. You'll then get a new stock recommendation every month, along with all the resources that Income Investor offers its subscribers.
Investors who want more income from their portfolios can't afford to wait for the overall market's dividend yields to rise. One reason we've put such an attractive price on this offer for Motley Fool Income Investor is to eliminate excuses for putting off jumping on board. Click here to join the Motley Fool Income Investor community today and get your portfolio working harder to generate the income you need.
The Motley Fool owns shares of and recommends ONEOK and PepsiCo. The Motley Fool recommends Enterprise Products Partners, Magellan Midstream Partners, and Unilever. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.