Dividends4Life: Stocks That Won’t Stop Paying You Cash

Dividend Growth Stocks News

Stocks That Won’t Stop Paying You Cash

Posted by D4L | Friday, July 30, 2010 | | 0 comments »

Are you 56 to 62 years old? If so, what I’m about to say will probably scare you. According to the Employee Benefit Research Institute, nearly half (47.2%) of you in that age bracket will not have enough money in retirement to pay for basic expenditures and health care costs. That doesn’t mean vacations abroad or fancy cars; I’m talking groceries, house maintenance, and routine medical checkups.

Most investors love dividends; after all, you get paid to hold a stock, so it’s just like having the attributes of a bond, but there’s also the potential for capital appreciation. Every year the S&P 500 comes out with what it calls the “Dividend Aristocrats.” Essentially, it’s the cream of the crop for dividend investors, and the requirements are more than stringent: 1.) Minimum market cap of $3 billion. 2.) Minimum average trading volume of $5 million to ensure liquidity. 3.) Company must have increased dividends every year for at least 25 years. And the S&P holds a tight leash. If you’re on the list, it’s for good reason, and if you even slightly stray from the path, it’s sayonara to you!

Source: Motley Fool

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