Dividend stocks are a great investment. The dividend is proof that a company is actually making money. I look for companies that have regularly raised their dividend over an extended period of time. Dividend.com is a useful site that shows historical dividend payouts.
The value of a company is the present value of its future dividends. If a company goes bankrupt without ever paying a dividend, the return to investors is zero. Here’s a few of my favorite dividend paying stocks:
- Procter & Gamble (PG)
- Johnson & Johnson (JNJ)
- General Mills (GIS)
- Heinz (HNZ)
- AT&T (T)