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THE TOP 40 DIVIDEND STOCKS FOR 2009 is the definitive guide for dividend
investing. It presents a straightforward, sensible methodology for picking great
dividend stocks and managing your portfolio. The “Top 40” are the best dividend
stocks available right now. You can start building your portfolio immediately, or re-tool
a portfolio you already have.
Would you like to have your own "perpetual cash stream" of increasing dividends?
THE TOP 40 DIVIDEND STOCKS FOR 2009 presents an exclusive list and
exhaustive analysis of the 40 highest-rated dividend stocks for 2009, as well as an
investment guide on how to build and maintain a dividend stock portfolio.
Dividends are stocks’ secret weapon. Dividends enable both superior long-term
growth and immediate income. The secret to achieving these seemingly opposed goals
lies in how you deploy the dividends. Because dividend stocks serve either goal so
well, they may be the best investment anyone can own.
**********
Keep reading to find out…
1. Why Dividend Stocks are Good for Long-Term Growth
2. Why Dividend Stocks are Good for Income
3. Whether Dividend Stocks Are Safe
4. What Are The 40 Best Dividend Stocks for 2009?
5. Why Is the Investment Guide Important?
6. Features, Benefits, and Distinctions from Competitors
**********
1. Why Dividend Stocks are Good for Long-Term Growth
From a long-term perspective, the most profitable stocks are dividend stocks.
The stocks with the best total returns are not the headline-grabbing high-growth, high-
priced, “latest great thing” issues. They are not technology stocks. The champions in
the best-total-returns game are dividend-paying stocks.
Look at this fascinating graph from Ned Davis Research:
Notice three things:
First, the total return from dividend-paying stocks far exceeds the return from
non-dividend-paying stocks, with the gap widening steadily over time.
Second, even during the high-flying bull market of 1982-2000, when so much total return
came from price increases, dividend stocks outperformed non-dividend stocks
handily.
And third, when the dot-com bubble crashed in 2000 through 2002, the dividend-
paying stocks held their own, compared to the steep losses of the non-dividend
payers. And that was no fluke: Look at the crash of 1974—see how much better the
dividend payers held up then, too.
Studies show that dividends have accounted for nearly half—or more—of the total return
of the stock market over very long terms. That may surprise you, considering how little
publicity dividends get. There is no widely reported dividend index that gets the attention
bestowed every day on the Dow, the S&P 500, and the NASDAQ.
But all of those indexes reflect price changes only. Thus, they give a very incomplete
picture of "how stocks are doing." No wonder dividends pass under so many investors'
radar. The fact is, hundreds of billions of dollars are distributed every year by
dividend-paying companies--about as much money as in some of the government's
highly publicized stimulus and spending programs.
Common perceptions are that dividend stocks are--
--slow-growing and boring;
--an indication that a company cannot think of anything better to do with the money; and
--good only for retirees needing income.
Don't believe them. These notions are all incorrect. Dividend-paying stocks are
attractive as a core investment for anybody, of any age.
Are you in the “wealth accumulation” stage of your life? That would be basically
everybody short of retirement. Beyond your immediate financial needs—day-to-day
pocket money, groceries, gasoline, mortgage and car payments, and raising your kids—
your predominant investment goal is to accumulate enough to retire.
"What's the number?" That’s the big question everyone wants to answer: How much will
you need for a comfortable retirement?
Whatever your number is, dividend stocks will help you get there. Look again at the
graph above. Dividend stocks will help you accumulate far more money than any
other stock investment, possibly more than any type of investment, period.
Dividend stocks offer the best total return. Remember, total return is the real target,
not merely price appreciation. Total return = price appreciation + dividends. The key
to long-term growth is to re-invest those dividends. See the difference in the following
illustration, also from Ned Davis Research:
Why the big difference between the two bars in the chart? Re-investing dividends
brings the miracle of compounding into play. You create a virtuous circle: Re-invest
dividends >> More shares owned >> More dividends to re-invest >> etc.
And it gets even better if the dividends themselves are increasing. As we will explain
later, the only dividend stocks to buy are those with a strong history of raising
their dividends.
**********
2. Why Dividend Stocks Are Good for Income
Maybe you are already retired. The benefit of dividend stocks is pretty obvious: It
becomes income. You do not have to sell the stock to get the dividend. It is simply
sent to you or credited to your account. You can withdraw it without touching your
principal.
You can do anything you like with your dividends. Those dollars are not "trapped" inside
the stock's share price. The dividends are distributed directly to you.
If you are a retiree, you can spend the dollars as month-to-month income. This is
where you reap the benefits of your intelligent wealth-building during the accumulation
years.
My surveys show that many retirees want to have both income and a growing nest egg.
Dividends make this possible. You can re-invest some and spend the rest. And, of
course, because dividend stocks are stocks, chances are good that they will generate
price appreciation over time, even without re-investing the dividends. I know that with the
bear market of 2007-2009, this may be hard to remember. But the bear market will end
(they always have), and stock prices will begin to appreciate again.
Here’s probably the best benefit of dividend stocks as an income source. Unlike your
pension, fixed annuity, CD, or bond, your dividend income will grow each year.
That’s because the best dividend stocks are the ones that raise their dividends
regularly. Those are the only kind to buy and the only ones that appear in the Top 40 list.
No bond increases its payout each year, and neither does your local bank.
When you retire, you want to have plenty to live on, and you also want to keep
your nest egg safe. These two goals--income and safety--become paramount.
Financial planners call this stage "harvesting." If you are retired, you must figure that
you may be in this stage 30 years or more—as long or longer than you were in the
workforce accumulating your nest egg. Besides looking after your own needs and not
outliving your money, you may wish to help your kids buy their first house, be generous
with your grandchildren, or perhaps leave a legacy. That's why income and safety
become so important: Income to live on, safety to keep the golden goose alive.
**********
3. Are Dividend Stocks Safe?
Relative safety is the third benefit of dividend stocks. The champions of the safety
game are dividend-paying stocks.
There are three aspects to investment risk: (1) actual loss of accumulated wealth; (2)
risk to the dividends; and (3) loss of purchasing power—inflation.
Well-selected dividend stocks are low-risk on all three scales.
First, risk of actual loss. Remember what we saw in the graph earlier: Dividend-
paying companies held up much better than non-dividend-payers during hard times in
the stock market. Despite the fierce bear market of 2007-2009, they are holding up
better now. This is not surprising. The best dividend-paying companies are usually
mature, solid, well established, and reliable. Many are wondrous cash machines, in
perpetually successful businesses. They pull in enough money every year to pay a
healthy dividend and still have enough left to grow the business too. They suffer less
during bear markets. In fact, many strengthen their competitive positions during
recessions as their less solid competitors get destroyed.
Of course, all stocks are vulnerable to market risk. Historically, dividend-paying stocks
have been less vulnerable than others. Besides, Sensible Dividend Investors (as I call
them) become less concerned with the market value of their securities, because they
have secured the right, as part owners of the companies they buy, to receive the
dividend payouts. That's the target. The fact that the price of those securities on the
open market keeps fluctuating becomes less important, so long as the dividends keep
coming.
Second, risk to the dividend. The best dividend companies cut their dividends
seldom and raise them often. Their dividend practices tend to persist, being tantamount
to company policy. They will go to great lengths not to deviate from the dividend
pattern they have established. They know that their shareholders expect it. Stocks
with a history of increasing their dividends and the financial wherewithal to keep doing it,
are the only kind you will find on the Top 40 list.
And finally, risk to purchasing power. This is the hidden risk, the thief that robs us
all: inflation. You don’t get a monthly bill in your mailbox for inflation. But it is hidden in
the background, driving up your cost of living. And this is where dividend stocks really
shine.
Well-chosen dividend stocks can be as safe as bonds. In fact, over long time periods,
they are safer, because as their dividends grow, they keep ahead of inflation. Bonds—
often considered the safest investment—usually do not keep up with inflation.
There’s a reason that bonds are called “fixed income” investments—their yield never
rises and neither does their face value.
Do you think the prices of gas or groceries are fixed? Of course not. That's why bonds
can't keep pace. But dividend-paying stocks do keep up with inflation. The dividends
from well-chosen dividend stocks grow faster than inflation. Five percent, eight
percent, or 10 percent annual growth in dividends is not at all unusual. The average
annual dividend growth of 2009's Top 40 dividend stocks is more than 16%
over the past three years.
**********
4. What Are The 40 Best Dividend Stocks for 2009?
Let me give you a few insights into the Top 40 Dividend Stocks themselves.
The list contains stocks from 11 different sectors and several foreign countries,
reflecting our global economy.
The Top 40 were selected by first running an initial universe of over 700 stocks through
several screens like those above.
Then, I used my Easy-Rate™ scoring system to identify the best dividend
stocks. Part I of the system looks at the company's quality. I looked at its "Story," its
earnings and earnings growth, revenue and revenue growth, ROE (return on equity),
debt, and dividend history. The system assigns points based on the company's
performance. Total points under this system make it easy to see if a company is an
excellent one or an also-ran.
Part II of the system scores the stock’s valuation as Excellent, Good+, Good, etc. The
entire system is methodical, understandable, and emotionless.
The best-scoring stocks made the Top 40. They are presented in four tables for
easy reference: (1) alphabetically, (2) by company quality score, (3) by total score, and
(4) by current dividend yield.
You may be surprised by some of the stocks not on the list. A sampling from that group:
In order to achieve the growth and income benefits described earlier, you need
to buy stocks with good dividend growth rates. The Easy-Rate system puts great
emphasis on growth, so a natural result is that the Top 40 list is dominated by stocks
with a history of consistent annual dividend increases. It is those growing dividends
that allow you to accelerate total nest-egg growth (if you are re-investing dividends) or
receive a growing yearly income (if you are harvesting).
My multi-faceted approach always leads to the elimination of many of the highest-
yielding stocks. (Such stocks are easy to find; Standard and Poor’s updates a list of
them weekly…with stocks yielding 16%, 19%, or more. Or you can run a screen on any
screener to find all the stocks yielding, say, 14% or more.) The problem with most of
the highest-yielding stocks is that their yields are not sustainable. They are
based on things like current unique economic cycles, bubbles in energy prices, extreme
price drops in the stocks themselves, and other impermanent conditions. You’d have to
trade in and out of such stocks to make them work. That goes against one of the goals
of Sensible Dividend Investing, which is that stock turnover should be relatively
infrequent.
Here is a small sample of the companies that made the grade to land in The Top 40:
The book includes completed Easy-Rate Scoresheets for each of the 40 winners, one
page per stock. This list of the best dividend stocks is available nowhere else.
**********
5. Why Is the Investment Guide Important?
The text included with the Top 40 list includes a complete how-to-do-it guide. It
presents dividend investing in logical steps that build a stairway to understanding and
action.
Dividend investing is not about flash and show. It’s about substance and getting the job
done. The text has been expanded this year to over 70 pages: Building the case for
dividend stocks, describing the Easy-Rate approach, and explaining how to start and
manage a dividend-stock portfolio using the Top 40 list as your starting point.
The text follows the mission of SensibleStocks.com: To help self-directed individual
investors with fact-based, practical, actionable information that they can use to profit in
the stock market.
I write for the individual investor. The levels of comprehensiveness and quality are
high, but everything is in plain English and presented in a pleasing format. The
methodology is totally transparent, and there is nothing that is not fact-based or that you
cannot verify yourself.
The text is non-hyperbolic, educational, and accessible. There are no “Secrets of the
Wall Street Gurus,” “Six Things Wall Street Doesn’t Want You to Know,” or “How to Get
Gains of 1716.8% in Six Months.” Those approaches appeal to some people, but not to
me, and I don’t think to you.
I am excited about dividend investing. Using this e-book as my guide, I have converted a
significant portion of my own personal portfolio over to dividend stocks, in addition to the
Dividend Portfolio tracked elsewhere on this Web site.
As stated earlier, I think that dividend-paying stocks are an ideal investment for most
individual investors—about the only exception being someone who is looking for fast
hyper-growth. That is unlikely with dividend stocks. Of course, neither is fast hyper-loss.
Owning dividend stocks is exciting, rewarding, and fun. Jump in the pool, the
water’s fine.
**********
6. Features, Benefits, and Distinctions from Competitors
Here are the most important features and benefits of The Top 40 Dividend Stocks for
2009:
How to Buy
1. Click any of the “Buy Now” buttons below located on this page. The price is $39...
less than a buck a stock, plus you get the complete text, Investment Guide, and filled-out
Easy-Rate Scoresheets for each stock.
2. Payment is securely handled through PayPal. You do not need a PayPal account—
they accept major credit cards in the usual fashion.
3. After payment is confirmed, you will be directed to a “Thank You” page. There you
will find a clear link to the document you have purchased. You will also receive a
confirmation email, and that too will contain the link to the document.
4. Use the link to access the pdf document (e-book). Access is instantaneous.
Download the document to your own computer. While the material is copyrighted, there
are no annoying restrictions on printing or any other use of the e-book you have
purchased. You own it.
It’s as easy as that. Within a few minutes, you will have your own copy of THE TOP 40
DIVIDEND STOCKS FOR 2009: Diviend Investing for the Long Haul.
Best Wishes for Your Investing Success,
Dave Van Knapp
PS: I am really excited about dividend investing. After creating the original special study
last year, I revamped my approach to the Dividend Portfolio tracked on this Web site.
The portfolio is now run exclusively according to the methodology presented in THE
TOP 40 DIVIDEND STOCKS e-books.
Not only that, I have converted a good portion of my own personal nest egg to dividend
investing. I am convinced that for the average individual investor, this is the best form of
investing for the long haul. And you know what? I sleep better at night because of it.
PPS: In creating this special study, I started with my book, SENSIBLE STOCK
INVESTING: How to Pick, Value, and Manage Stocks. (See cover image and links
to the right.)
I re-calibrated that book’s Easy-Rate™ scoring system to emphasize dividend
factors and make the best dividend stocks “pop out.” I tweaked and played with the new
scoring system until I was sure that it would truly identify the best dividend stocks. I have
added a couple more improvements to 2009's system.
Then I collected names of potential candidates. I scoured innumerable sources. When I
was done, I had more than 700 stocks as candidates.
Third, I subjected all of them to several important tests. Have they been paying their
dividends uninterruptedly and raising them regularly? Have their total returns kept pace
with the market? Do they have a decent yield right now? There were five tests like these,
and they reduced the 700 candidates to about 130 finalists.
Finally, I used the Easy-Rate system to score all of the finalists. I ranked them according
to their scores. I selected 33 stocks on scoring alone. Then I added a few “editor’s
choices.” That gave me the Top 40 list.
Notice that I did not just concentrate on current yield, as so many dividend
investors mistakenly do. Many of the highest yielding stocks have hidden
pitfalls and are literally “too good to be true.” Their dividends are not safe.
Instead, I kept my eye on the ball: total returns and safety. Thus, factors like
consistency, reliability, and dividend growth played a large role in determining the Top
40 list.
This Special Study is not sold in bookstores. It’s easy to order online. Just click on the
button to the right. You will get THE TOP 40 DIVIDEND STOCKS FOR 2009:
Dividend Investing for the Long Haul in minutes. Downloading the report to your
computer is instantaneous once payment is completed.
investing. It presents a straightforward, sensible methodology for picking great
dividend stocks and managing your portfolio. The “Top 40” are the best dividend
stocks available right now. You can start building your portfolio immediately, or re-tool
a portfolio you already have.
Would you like to have your own "perpetual cash stream" of increasing dividends?
THE TOP 40 DIVIDEND STOCKS FOR 2009 presents an exclusive list and
exhaustive analysis of the 40 highest-rated dividend stocks for 2009, as well as an
investment guide on how to build and maintain a dividend stock portfolio.
Dividends are stocks’ secret weapon. Dividends enable both superior long-term
growth and immediate income. The secret to achieving these seemingly opposed goals
lies in how you deploy the dividends. Because dividend stocks serve either goal so
well, they may be the best investment anyone can own.
**********
Keep reading to find out…
1. Why Dividend Stocks are Good for Long-Term Growth
2. Why Dividend Stocks are Good for Income
3. Whether Dividend Stocks Are Safe
4. What Are The 40 Best Dividend Stocks for 2009?
5. Why Is the Investment Guide Important?
6. Features, Benefits, and Distinctions from Competitors
**********
1. Why Dividend Stocks are Good for Long-Term Growth
From a long-term perspective, the most profitable stocks are dividend stocks.
The stocks with the best total returns are not the headline-grabbing high-growth, high-
priced, “latest great thing” issues. They are not technology stocks. The champions in
the best-total-returns game are dividend-paying stocks.
Look at this fascinating graph from Ned Davis Research:
Notice three things:
First, the total return from dividend-paying stocks far exceeds the return from
non-dividend-paying stocks, with the gap widening steadily over time.
Second, even during the high-flying bull market of 1982-2000, when so much total return
came from price increases, dividend stocks outperformed non-dividend stocks
handily.
And third, when the dot-com bubble crashed in 2000 through 2002, the dividend-
paying stocks held their own, compared to the steep losses of the non-dividend
payers. And that was no fluke: Look at the crash of 1974—see how much better the
dividend payers held up then, too.
Studies show that dividends have accounted for nearly half—or more—of the total return
of the stock market over very long terms. That may surprise you, considering how little
publicity dividends get. There is no widely reported dividend index that gets the attention
bestowed every day on the Dow, the S&P 500, and the NASDAQ.
But all of those indexes reflect price changes only. Thus, they give a very incomplete
picture of "how stocks are doing." No wonder dividends pass under so many investors'
radar. The fact is, hundreds of billions of dollars are distributed every year by
dividend-paying companies--about as much money as in some of the government's
highly publicized stimulus and spending programs.
Common perceptions are that dividend stocks are--
--slow-growing and boring;
--an indication that a company cannot think of anything better to do with the money; and
--good only for retirees needing income.
Don't believe them. These notions are all incorrect. Dividend-paying stocks are
attractive as a core investment for anybody, of any age.
Are you in the “wealth accumulation” stage of your life? That would be basically
everybody short of retirement. Beyond your immediate financial needs—day-to-day
pocket money, groceries, gasoline, mortgage and car payments, and raising your kids—
your predominant investment goal is to accumulate enough to retire.
"What's the number?" That’s the big question everyone wants to answer: How much will
you need for a comfortable retirement?
Whatever your number is, dividend stocks will help you get there. Look again at the
graph above. Dividend stocks will help you accumulate far more money than any
other stock investment, possibly more than any type of investment, period.
Dividend stocks offer the best total return. Remember, total return is the real target,
not merely price appreciation. Total return = price appreciation + dividends. The key
to long-term growth is to re-invest those dividends. See the difference in the following
illustration, also from Ned Davis Research:
Why the big difference between the two bars in the chart? Re-investing dividends
brings the miracle of compounding into play. You create a virtuous circle: Re-invest
dividends >> More shares owned >> More dividends to re-invest >> etc.
And it gets even better if the dividends themselves are increasing. As we will explain
later, the only dividend stocks to buy are those with a strong history of raising
their dividends.
**********
2. Why Dividend Stocks Are Good for Income
Maybe you are already retired. The benefit of dividend stocks is pretty obvious: It
becomes income. You do not have to sell the stock to get the dividend. It is simply
sent to you or credited to your account. You can withdraw it without touching your
principal.
You can do anything you like with your dividends. Those dollars are not "trapped" inside
the stock's share price. The dividends are distributed directly to you.
If you are a retiree, you can spend the dollars as month-to-month income. This is
where you reap the benefits of your intelligent wealth-building during the accumulation
years.
My surveys show that many retirees want to have both income and a growing nest egg.
Dividends make this possible. You can re-invest some and spend the rest. And, of
course, because dividend stocks are stocks, chances are good that they will generate
price appreciation over time, even without re-investing the dividends. I know that with the
bear market of 2007-2009, this may be hard to remember. But the bear market will end
(they always have), and stock prices will begin to appreciate again.
Here’s probably the best benefit of dividend stocks as an income source. Unlike your
pension, fixed annuity, CD, or bond, your dividend income will grow each year.
That’s because the best dividend stocks are the ones that raise their dividends
regularly. Those are the only kind to buy and the only ones that appear in the Top 40 list.
No bond increases its payout each year, and neither does your local bank.
When you retire, you want to have plenty to live on, and you also want to keep
your nest egg safe. These two goals--income and safety--become paramount.
Financial planners call this stage "harvesting." If you are retired, you must figure that
you may be in this stage 30 years or more—as long or longer than you were in the
workforce accumulating your nest egg. Besides looking after your own needs and not
outliving your money, you may wish to help your kids buy their first house, be generous
with your grandchildren, or perhaps leave a legacy. That's why income and safety
become so important: Income to live on, safety to keep the golden goose alive.
**********
3. Are Dividend Stocks Safe?
Relative safety is the third benefit of dividend stocks. The champions of the safety
game are dividend-paying stocks.
There are three aspects to investment risk: (1) actual loss of accumulated wealth; (2)
risk to the dividends; and (3) loss of purchasing power—inflation.
Well-selected dividend stocks are low-risk on all three scales.
First, risk of actual loss. Remember what we saw in the graph earlier: Dividend-
paying companies held up much better than non-dividend-payers during hard times in
the stock market. Despite the fierce bear market of 2007-2009, they are holding up
better now. This is not surprising. The best dividend-paying companies are usually
mature, solid, well established, and reliable. Many are wondrous cash machines, in
perpetually successful businesses. They pull in enough money every year to pay a
healthy dividend and still have enough left to grow the business too. They suffer less
during bear markets. In fact, many strengthen their competitive positions during
recessions as their less solid competitors get destroyed.
Of course, all stocks are vulnerable to market risk. Historically, dividend-paying stocks
have been less vulnerable than others. Besides, Sensible Dividend Investors (as I call
them) become less concerned with the market value of their securities, because they
have secured the right, as part owners of the companies they buy, to receive the
dividend payouts. That's the target. The fact that the price of those securities on the
open market keeps fluctuating becomes less important, so long as the dividends keep
coming.
Second, risk to the dividend. The best dividend companies cut their dividends
seldom and raise them often. Their dividend practices tend to persist, being tantamount
to company policy. They will go to great lengths not to deviate from the dividend
pattern they have established. They know that their shareholders expect it. Stocks
with a history of increasing their dividends and the financial wherewithal to keep doing it,
are the only kind you will find on the Top 40 list.
And finally, risk to purchasing power. This is the hidden risk, the thief that robs us
all: inflation. You don’t get a monthly bill in your mailbox for inflation. But it is hidden in
the background, driving up your cost of living. And this is where dividend stocks really
shine.
Well-chosen dividend stocks can be as safe as bonds. In fact, over long time periods,
they are safer, because as their dividends grow, they keep ahead of inflation. Bonds—
often considered the safest investment—usually do not keep up with inflation.
There’s a reason that bonds are called “fixed income” investments—their yield never
rises and neither does their face value.
Do you think the prices of gas or groceries are fixed? Of course not. That's why bonds
can't keep pace. But dividend-paying stocks do keep up with inflation. The dividends
from well-chosen dividend stocks grow faster than inflation. Five percent, eight
percent, or 10 percent annual growth in dividends is not at all unusual. The average
annual dividend growth of 2009's Top 40 dividend stocks is more than 16%
over the past three years.
**********
4. What Are The 40 Best Dividend Stocks for 2009?
Let me give you a few insights into the Top 40 Dividend Stocks themselves.
- Any company that cut its dividend in the past 5 years is not on the list. Also
missing are companies that have announced cuts to take effect in 2009 (such as
GE). - All companies on the list have their dividend in each of the past 5 years.
- Twenty of the companies have raised their dividend for 20 or more years
consecutively. - The average currrent dividend of the 40 companies is 5.2%. They range from a
low of 3.0% to a high of 9.9%. - Every company (except three) has raised its dividend at least 5% on average
over the past three years. (I made exceptions for three companies that have raised
their dividends for at least 20 years in a row--I allowed their 3-year average rate of
dividend growth to be 4% in exchange for the demonstrated reliability of their
dividend growth.)
The list contains stocks from 11 different sectors and several foreign countries,
reflecting our global economy.
The Top 40 were selected by first running an initial universe of over 700 stocks through
several screens like those above.
Then, I used my Easy-Rate™ scoring system to identify the best dividend
stocks. Part I of the system looks at the company's quality. I looked at its "Story," its
earnings and earnings growth, revenue and revenue growth, ROE (return on equity),
debt, and dividend history. The system assigns points based on the company's
performance. Total points under this system make it easy to see if a company is an
excellent one or an also-ran.
Part II of the system scores the stock’s valuation as Excellent, Good+, Good, etc. The
entire system is methodical, understandable, and emotionless.
The best-scoring stocks made the Top 40. They are presented in four tables for
easy reference: (1) alphabetically, (2) by company quality score, (3) by total score, and
(4) by current dividend yield.
You may be surprised by some of the stocks not on the list. A sampling from that group:
- Most banks--The current turmoil in the banking system simply makes their future
too hard to predict. A dividend investor wants to have a high degree of safety and
the ability to hold stocks for a long time while their dividends grow. Many banks
have cut their dividends in the late 2008-early 2009 or have "dividends in peril."
Too much depends on government intervention to have much confidence in the
entire sector. - British Petroleum (failed 5-year minimum return test, and has announced it
expects to freeze its dividend in 2009) - Caterpillar (also failed 5-year return test, and its dividend must be considered in
peril with the extreme slowdown in construction and demand for heavy equipment) - Clorox (outpointed by other companies)
- Most REITs (they have been battered by the recession and their dividends are in
peril) - Newspapers (a dying industry)
- GE (its financing division, once a source of strength, fell into the same trap as
many other banks; GE has announced a dividend cut later in 2009, breaking a
streak of 32 years of consecutive annual increases) - IBM (a great company, but its yield is too low)
- Kimberly Clark (outpointed by other companies)
- Pfizer (failed 3-out-of-5-years positive returns test)
- Unilever (failed 5-year minimum return test)
In order to achieve the growth and income benefits described earlier, you need
to buy stocks with good dividend growth rates. The Easy-Rate system puts great
emphasis on growth, so a natural result is that the Top 40 list is dominated by stocks
with a history of consistent annual dividend increases. It is those growing dividends
that allow you to accelerate total nest-egg growth (if you are re-investing dividends) or
receive a growing yearly income (if you are harvesting).
My multi-faceted approach always leads to the elimination of many of the highest-
yielding stocks. (Such stocks are easy to find; Standard and Poor’s updates a list of
them weekly…with stocks yielding 16%, 19%, or more. Or you can run a screen on any
screener to find all the stocks yielding, say, 14% or more.) The problem with most of
the highest-yielding stocks is that their yields are not sustainable. They are
based on things like current unique economic cycles, bubbles in energy prices, extreme
price drops in the stocks themselves, and other impermanent conditions. You’d have to
trade in and out of such stocks to make them work. That goes against one of the goals
of Sensible Dividend Investing, which is that stock turnover should be relatively
infrequent.
Here is a small sample of the companies that made the grade to land in The Top 40:
- One REIT (one of only two on this year's list) calls itself "The Monthly Dividend
Company," and it delivers. In many years, every one of its 12 dividends represents
an increase over the last one. - Two well-known, household names in the healthcare sector supply products you
use every day. - Several consumer-products companies supply products and brands that are
probably throughout your home right now. - One famous company may have served you a hamburger (or coffee) within the
past week. - Returning from last year: You drink their soda every day. Oh, you drink the other
soda? That one’s on the list too. Both are great companies that have been
increasing their dividends for decades.
The book includes completed Easy-Rate Scoresheets for each of the 40 winners, one
page per stock. This list of the best dividend stocks is available nowhere else.
**********
5. Why Is the Investment Guide Important?
The text included with the Top 40 list includes a complete how-to-do-it guide. It
presents dividend investing in logical steps that build a stairway to understanding and
action.
Dividend investing is not about flash and show. It’s about substance and getting the job
done. The text has been expanded this year to over 70 pages: Building the case for
dividend stocks, describing the Easy-Rate approach, and explaining how to start and
manage a dividend-stock portfolio using the Top 40 list as your starting point.
The text follows the mission of SensibleStocks.com: To help self-directed individual
investors with fact-based, practical, actionable information that they can use to profit in
the stock market.
I write for the individual investor. The levels of comprehensiveness and quality are
high, but everything is in plain English and presented in a pleasing format. The
methodology is totally transparent, and there is nothing that is not fact-based or that you
cannot verify yourself.
The text is non-hyperbolic, educational, and accessible. There are no “Secrets of the
Wall Street Gurus,” “Six Things Wall Street Doesn’t Want You to Know,” or “How to Get
Gains of 1716.8% in Six Months.” Those approaches appeal to some people, but not to
me, and I don’t think to you.
I am excited about dividend investing. Using this e-book as my guide, I have converted a
significant portion of my own personal portfolio over to dividend stocks, in addition to the
Dividend Portfolio tracked elsewhere on this Web site.
As stated earlier, I think that dividend-paying stocks are an ideal investment for most
individual investors—about the only exception being someone who is looking for fast
hyper-growth. That is unlikely with dividend stocks. Of course, neither is fast hyper-loss.
Owning dividend stocks is exciting, rewarding, and fun. Jump in the pool, the
water’s fine.
**********
6. Features, Benefits, and Distinctions from Competitors
Here are the most important features and benefits of The Top 40 Dividend Stocks for
2009:
- Top 40 List: A list of the Top 40 Dividend Stocks for 2008. Use it as your
Shopping List to build or improve your dividend stock portfolio. These stocks
were selected based on an exclusive, proven approach for picking winning
dividend stocks.
- Completed Easy-Rate™ Scoresheets: One concise sheet per stock, 40 in all,
filled out according to the unique point system devised for this special study.
Saves you the work of looking up data and evaluating stocks yourself. The hard
work has been done for you.
- Clickable links: Each Scoresheet has a clickable link to the company’s Web site.
No cumbersome entering URLs into your browser.
- Candid discussion of the pros and cons of dividend stocks. Dividend
stocks are not for everyone. They will not satisfy someone looking for hyper-growth
in a short period of time. They are not for rapid-fire or very active traders. The text
contains a lucid and comprehensive discussion of the pros and cons of dividend-
paying stocks, and how to identify the best of them.
- Explains how to build, manage, and maintain, a dividend stock portfolio.
Thoroughly covers when to buy, hold, and sell.
- Real-money portfolio: The Dividend Portfolio maintained on this site is run by
the precepts in the 2008 and 2009 editions of this special study. It illustrates how it
all works. The Dividend Portfolio is not a hypothetical “model.” It is real, and the
money is my own. Therefore, I take this very seriously.
- Up to date: The Special Study bypasses the lengthy delays of regular book
publishing. By comparison, an often-seen “Best Stocks of 200x” book is
published each year with information that is almost a year old by the time the book
is available.
- Clear, succinct text: About 70 pages of text are included—30 more than last
year. The text is a friendly, comprehensive, and intelligent discussion about all
aspects of dividend investing. It includes a complete step-by-step guide to
creating and maintaining a portfolio of dividend-paying stocks. The book is written
in an accessible, conversational style. The text is augmented with illustrations,
tables, summaries, and other aids to understanding.
- No separate pamphlets: The text is fully integrated. It flows logically. It contains
complete information that is easily comprehensible. There are no cumbersome
“bonus reports” that are really just come-ons to make it seem like you are
getting a great deal. That’s just a marketing ploy—and it’s also lazy, forcing you
to weave information from each pamphlet into the complete picture. I've already
painted the complete picture for you.
- List of omitted stocks: These are stocks you might normally expect to find in a
list of the best dividend stocks, but which did not make the grade here. It
contains eye-opening facts that show you why these companies did not make the
Top 40.
- Focus on consistency of dividends: My point system rewards companies
that pay dividends regularly. Minimum requirements are that the company must
have paid dividends for at least 5 years running. In fact, every stock on the list has
paid a dividend for many more years than that. These are well-established
companies.
- Focus on rising dividends: The point system also rewards companies that
regularly increase their dividends. Every company on the Top 40 list has
raised its dividends for at least 5 years in a row. To keep up with inflation and
generate the best total returns, you need to know which companies raise their
dividends regularly. .
How to Buy
1. Click any of the “Buy Now” buttons below located on this page. The price is $39...
less than a buck a stock, plus you get the complete text, Investment Guide, and filled-out
Easy-Rate Scoresheets for each stock.
2. Payment is securely handled through PayPal. You do not need a PayPal account—
they accept major credit cards in the usual fashion.
3. After payment is confirmed, you will be directed to a “Thank You” page. There you
will find a clear link to the document you have purchased. You will also receive a
confirmation email, and that too will contain the link to the document.
4. Use the link to access the pdf document (e-book). Access is instantaneous.
Download the document to your own computer. While the material is copyrighted, there
are no annoying restrictions on printing or any other use of the e-book you have
purchased. You own it.
It’s as easy as that. Within a few minutes, you will have your own copy of THE TOP 40
DIVIDEND STOCKS FOR 2009: Diviend Investing for the Long Haul.
Best Wishes for Your Investing Success,
Dave Van Knapp
PS: I am really excited about dividend investing. After creating the original special study
last year, I revamped my approach to the Dividend Portfolio tracked on this Web site.
The portfolio is now run exclusively according to the methodology presented in THE
TOP 40 DIVIDEND STOCKS e-books.
Not only that, I have converted a good portion of my own personal nest egg to dividend
investing. I am convinced that for the average individual investor, this is the best form of
investing for the long haul. And you know what? I sleep better at night because of it.
PPS: In creating this special study, I started with my book, SENSIBLE STOCK
INVESTING: How to Pick, Value, and Manage Stocks. (See cover image and links
to the right.)
I re-calibrated that book’s Easy-Rate™ scoring system to emphasize dividend
factors and make the best dividend stocks “pop out.” I tweaked and played with the new
scoring system until I was sure that it would truly identify the best dividend stocks. I have
added a couple more improvements to 2009's system.
Then I collected names of potential candidates. I scoured innumerable sources. When I
was done, I had more than 700 stocks as candidates.
Third, I subjected all of them to several important tests. Have they been paying their
dividends uninterruptedly and raising them regularly? Have their total returns kept pace
with the market? Do they have a decent yield right now? There were five tests like these,
and they reduced the 700 candidates to about 130 finalists.
Finally, I used the Easy-Rate system to score all of the finalists. I ranked them according
to their scores. I selected 33 stocks on scoring alone. Then I added a few “editor’s
choices.” That gave me the Top 40 list.
Notice that I did not just concentrate on current yield, as so many dividend
investors mistakenly do. Many of the highest yielding stocks have hidden
pitfalls and are literally “too good to be true.” Their dividends are not safe.
Instead, I kept my eye on the ball: total returns and safety. Thus, factors like
consistency, reliability, and dividend growth played a large role in determining the Top
40 list.
This Special Study is not sold in bookstores. It’s easy to order online. Just click on the
button to the right. You will get THE TOP 40 DIVIDEND STOCKS FOR 2009:
Dividend Investing for the Long Haul in minutes. Downloading the report to your
computer is instantaneous once payment is completed.
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| Dave Van Knapp Author of SENSIBLE STOCK INVESTING: How to Pick, Value, and Manage Stocks and THE TOP 40 DIVIDEND STOCKS FOR 2009: Dividend Investing for the Long Haul (This is the second annual Top 40 Dividend Stocks book that Dave has published.) About Dave Van Knapp Reviews of THE TOP 40 DIVIDEND STOCKS |
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| Would You Like to Grow Wealth Long-Term OR Harvest Income Immediately with The Best Dividend Stocks? |
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