3 Dividend Stocks To Beat The Wall Street Giants

Driven by computers that cost more than the average person will earn in their lifetime the investment markets move at light speed. To keep pace hedge funds, mutual funds, institutional investors and multi-billion dollar money managers spend large sums of money on high-tech tools to give them an edge. Throw in some illegal insider trading from big names in the industry and it leaves you wondering what chance does a small individual investor have?

Not much of a chance if you let the Wall Street players define the rules. However, you might just slay the giant if you define the rules. Benjamin Graham is quoted as saying "the stock market resembles a huge laundry in which institutions take in large blocks of each other's washing ... without rhyme or reason."

When it comes to investing, patience is a lost art. Investors are free to choose their holding period. Instead of trying to make trying to make a few cents on hundreds of trades, I prefer to buy and hold quality blue chip dividend growth stocks. Consider the following stocks:

Wal-Mart Stores, Inc. (WMT) is the largest retailer in the world, operating a chain of over 10,000 discount department stores, wholesale clubs, supermarkets and supercenters. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 47 consecutive years. Yield: 1.7%

McDonald's Corp. (MCD) is the largest fast-food restaurant company in the world, with about 35,000 restaurants in 119 countries. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 44 consecutive years. Yield: 2.2%

Johnson & Johnson (JNJ) is a leader in the pharmaceutical, medical device, and consumer products industries. TThe company has paid a cash dividend to shareholders every year since 1944 and has increased its dividend payments for 60 consecutive years. Yield: 2.7%

If your goal is to build an ever-increasing revenue stream from income investments, the above dividend stocks will give your income a boost over time. The key is to wait for the right entry point and let time take care of the rest.

Full Disclosure: Long MCD, JNJ, WMT, in my Dividend Growth Stocks Portfolio. 

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