Passive Income Opportunities – Part 4 – Investments In Top Dividend Paying Stocks

Stock and mutual fund dividends rank high as passive income sources. Passive income comes into play automatically as soon as you stake claim to securities that pay dividends. Adding another feather is that the dividends have appreciation potential that ensures inflation is kept in check. This link shows the list of dividend aristocrats (25 consecutive years of increased cash payments) from the S&P 500 index. Below is a list that shows the historical compounded annual growth rate (CAGR) of dividends of the companies in the S&P 500-dividend aristocrat index over the 10 years through EOY 2011:



SymbolCompanyDividend CAGR
MMM3M Co6.1
ABTAbbott Laboratories9.18
MOAltria Group6.49
BUDAnheuser-Busch Cos9.76
ADMArcher-Daniels-Midland10.84
ADPAutomatic Data Proc13.25
AVYAvery Dennison Corp6.66
BACBank of America12.91
BCRBard (C.R.)5.24
BBTBB&T Corp10.15
BDXBecton Dickinson12.95
CTLCenturyTel Inc4.69
CBChubb Corp7.18
CINFCincinnati Financial11.09
CLXClorox Co9.6
KOCoca-Cola Co9.28
CMAComerica Inc8.36
EDConsolidated Edison1.00
DOVDover Corp7.73
EMREmerson Electric5.93
FDOFamily Dollar Stores11.14
FITBFifth Third Bancorp15.69
FHNFirst Horizon Natl10.55
GCIGannett Co7.73
GEGenl Electric10.84
GWWGrainger (W.W.)10
JNJJohnson & Johnson14.2
JCIJohnson Controls11.12
KEYKeyCorp5.68
KMBKimberly-Clark8.24
LEGLeggett & Platt9.9
LLYLilly (Eli)7.83
LOWLowe's Cos27.77
MTBM&T Bank24.22
MCDMcDonald's Corp19.74
MHPMcGraw-Hill Companies8.58
NUENucor Corp37.64
PEPPepsiCo Inc11.61
PFEPfizer Inc16.44
PPGPPG Indus4.34
PGProcter & Gamble10.73
PGRProgressive Corp5.82
STRQuestar Corp4.51
RFRegions Financial8.31
ROHRohm & Haas8.3
SHWSherwin-Williams12.16
SIALSigma-Aldrich13.11
SLMSLM Corp18.27
SWKStanley Works4.48
STTState Street Corp13.87
SVUSupervalu Inc2.72
SNVSynovus Financial13.07
TGTTarget Corp12.02
USBU.S. Bancorp12.56
VFCVF Corp10.65
WMTWal-Mart Stores22
WAGWalgreen Co11.74
WWYWrigley (Wm) Jr5.33


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Last Updated: 01/2015.





2 comments :

  1. First, thanks for the elaborate article on a topic I believe is key to financial freedom. However, money derived from stocks and bonds is not passive but portfolio income by the IRS standards, and thereby does not qualify for the perks allowed to passive income generators, such as capital gain tax avoidance, taxable income deductions, and the like. Your readers should be advised that it is passive income by the IRS standards that is the true key to financial freedom. That is different from income that merely arrives passively, such as is the case with a pension plan, 401 k, and other paper assett portfolios.

    ReplyDelete
  2. Hi Jamiel:

    This is very true - thanks for the Insight!

    Regards,

    ReplyDelete