Wed. Oct. 13, 2010

12 Dividend Stocks Delivering The Secret To Success *

We all want to learn the secret to success. Many get-rich-now infomercials have preyed on this desire while making the sellers wealthy at the expense of the buyers. I have good news for you, there really is a secret to success, and what is even better news is that the secret is not hard to discover. It has been right there in front of you all this this time. Your parents likely taught it to you in the form of a fable. Let’s explore this secret to success a little more…

As a child most of heard (or watched) Aesop’s fable The Tortoise and the Hare. The story is about confident hare that brags about how fast he can run while poking fun at a slow-moving tortoise. The tortoise having tired of the hare’s fodder challenges him to a race. The hare jumps out to an early lead and decides to take a nap midway through the race. When he awakes, he finds that the tortoise made steady progress and beat him to the finish line.

Have you ever stopped to ponder just where are all these get-rich-now infomercial millionaires? I know several people who have purchased one or more of these get-rich-now kits, but I don’t know of anyone who actually got rich from purchasing the kit. Warren Buffett and Bill Gates didn’t build their fortunes with a get-rich-now kit. They worked hard built it steadily over time.

In much the same way, a disciplined approach to investing, such as dividend growth stocks, can be highly effective. Though it may seem boring to many, I find it exciting to see my income growing as the finish line approaches. Consider these slow and steady growers:

Current Dividend Yrs of
Company Yield Growth Growth
Wal-Mart Stores (WMT) 2.22% 11.01% 36
Pepsico, Inc. (PEP) 2.87% 6.48% 38
Sysco Corp. (SYY) 3.43% 6.52% 39
Federal Realty (FRT) 3.22% 1.53% 42
Colgate (CL) 2.71% 12.48% 47
Illinois Tool Works (ITW) 2.68% 4.84% 47
J&J (JNJ) 3.34% 8.42% 48
Coca-Cola (KO) 2.96% 7.32% 48
3M Company (MMM) 2.36% 2.47% 52
Emerson Electric (EMR) 2.51% 1.52% 53
Genuine Parts (GPC) 3.64% 2.50% 54
Procter & Gamble (PG) 3.12% 6.96% 54

There are really no shortcuts to long-term wealth. Many of those that win the lottery end up losing the money through mismanagement (or worse.) Dividend growth stocks may be slow, but they are also steady; and slow and steady wins the race.

Full Disclosure: Long WMT, PEP, SYY, CL, ITW, JNJ, KO, MMM, EMR, GPC, PG. See a list of all my income holdings here.

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(Photo: Photo Credit)

4 Responses to “12 Dividend Stocks Delivering The Secret To Success *”

  1. es5598 says:

    Great post.

    I often get tempted to gamble with my investments, even though I know that a consistent, disciplined, and above all patient approach wins out in the end.

    Thanks for the reminder!


    Have you done an analysis on NGP CAPITAL RESOURCES (NGPC)? I would be interested in seeing your analysis on this stock. Current price $9.74, Yield 7.15%, Div. .68, Beta 1.10, 52week $10.09/6.50, p/e 10.05, r/e 8.87.MSM Stock Scouter 10, Caps 5.

    I see dividends paid since 2005 with a range of .12 to .18 cents per share.

    Thank you,

  3. D4L says:

    JERRY ZIMMERMAN: I haven’t looked at NGPC. How many consecutive years has it increased its dividend?

    Best Wishes,

  4. Bill66 says:

    Patience? Discipline?

    You’re preaching to a society where many people constantly have a cell phone in their ear (unable to wait to make that important call until they get home, of course), where there are TVs in the corner of every restaurant (can’t miss a moment of that game or show, etc.) A society with the attention span of a gnat.

    And you have a market dominated by computers trading at the speed of light.

    Call me a grouch but don’t call me wrong. One way or another, we’re all HFT, it seems.