Dividend Stocks With Rising Yields for 2012

It seems that almost every investment manager is singing the praises of dividend-paying stocks for safety during tough economic times. But Rick Platte goes a step further and says investors ought to find companies that are increasing payouts. Platte, co-portfolio manager of the Ave Maria Rising Dividend Fund(AVEDX_), says rising income will help offset inflation in the coming year. The 10-year U.S. Treasury is yielding only 2%, while the latest reading on inflation is a seasonally unadjusted 3.5%, meaning investors are losing money on government bonds.

Picking dividend stocks "looks pretty darn attractive" on an absolute basis versus bonds, Platte says. With Europe and the U.S. failing to effectively manage a swelling debt crisis and a U.S. presidential election on tap, Platte says it'll be "more of the same old, same old." With slow growth in the cards, Platte heralds the benefits of having a diversified portfolio of companies committed to raising their dividends, such as 3M(MMM_) and Lowe's(LOW_).

Source: The Street

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