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Tuesday, May 28, 2013

7 Select High-Yield S&P 500 Dividend Stocks

The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 1957 and is the second most recognized index in the U.S. behind only the Dow Jones Industrial Average. Stocks included in the S&P 500 are large publicly companies that trade on either the New York Stock Exchange or the NASDAQ.

Most of the stocks are U.S. based companies. However, there are a few companies with headquarters incorporated outside of the U.S. For many investors, the S&P 500 represents the U.S. stock market and this index is used as a benchmark for many portfolios.

Not all stocks in the index pay dividends, but many of the best known dividend growth stocks are part of the index. The dividend Aristocrats is a subset of the S&P 500 and is limited to stocks that have increased their dividend for 25 or more years.

This week week, I screened my dividend growth stocks database for stocks that are members of the S&P 500, have a yield of 4% or more and have increased their dividend for 10 or more consecutive years. The results are presented below:

Consolidated Edison, Inc. (ED) is an electric and gas utility holding company the serves parts of New York, New Jersey and Pennsylvania. ED is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers™ Index and a Dividend Champion. The company has paid a cash dividend to shareholders every year since 1885 and has increased its dividend payments for 40 consecutive years. Yield: 4.2%

AGL Resources Inc. (GAS) is an energy services holding company that provides natural gas to about 4.5 million customers, mostly in Illinois and Georgia, and operates several non-utility businesses. GAS is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index.The company has paid a cash dividend to shareholders every year since 1939 and has increased its dividend payments for 11 consecutive years. Yield: 4.4%

Southern Company (SO) is an Atlanta-based energy holding company and is one of the largest producers of electricity in the U.S. SO is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 12 consecutive years. Yield: 4.5%

PP&L Corporation (PPL) is a holding company for electric utilities in Pennsylvania and Kentucky also owns utilities in the U.K. PPL is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. The company has paid a cash dividend to shareholders every year since 1946 and has increased its dividend payments for 12 consecutive years. Yield: 4.8%

People's United Financial Inc. (PBCT) provides a full range of banking and financial service products to individuals, corporations and municipal customers in the U.S. Northeast. PBCT is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. The company has paid a cash dividend to shareholders every year since 1993 and has increased its dividend payments for 16 consecutive years. Yield: 4.7%

Lockheed Martin Corp. (LMT), the world's largest military weapons manufacturer, is also a significant supplier to NASA and other non-defense government agencies. LMT receives about 93% of its revenues from global defense sales. LMT is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. The company has paid a cash dividend to shareholders every year since 1995 and has increased its dividend payments for 11 consecutive years. Yield: 4.3%

AT&T Inc. (T) provides telephone and broadband service and holds full ownership of AT&T Mobility (formerly Cingular Wireless). T is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers™ Index and a Dividend Champion. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 30 consecutive years. Yield: 4.9%

As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 230+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long ED, PBCT, LMT, T in my Dividend Growth Portfolio and long SO in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

Related Articles
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- Asset Allocation For Income Investors
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks

(Photo: Steve Woods)

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