Dividend Stocks - Start with Lists

My search for potential investments includes looking at dividend paying companies.  Why?

• The theme has the potential to open new possibilities that, otherwise, I might not have considered.
• Dividend paying stocks offer the potential for steady income which is taxed in Canada at lower rates than interest bearing vehicles.  
• Dividend income can be regarded as being paid for waiting until such time as a stock may increase in value.  For the most part, I am a value investor and am patient and tolerant of short-term fluctuations in price. 
• The combination of dividend income and capital appreciation is potent, especially if one is fortunate to find a company with long-term economic prospects. 
• Many companies offer dividend reinvestment plans whereby dividends can be employed to add to one's position.  There are several benefits to this (Google "DRIPs")
• High dividend rates may indicate the economic fragility of an enterprise and constitute one signal for taking a position which anticipates a future decline in the stock's price. 

To appreciate the power of investing in dividend stocks, look at this account of an individual who has done well in achieving a position of economic well-being:

My Own Advisor

In my search, I  am consulting a variety of sources which focus on dividend paying stocks.  In addition to providing lists, the sites offer a variety of perspectives which may tweak your thinking. 

Sure Dividend

The downloadable Dividend Kings Spreadsheet List below contains the following for each stock in the index:

Dividend yield

Price-to-earnings ratio

Consecutive years of dividend increase

Along with other important investing metrics.

Dividend Kings

Offers commentary on selected companies, also a variety of perspectives such as fastest growing, worst performing companies.

Dividends Ranking

Offers a comprehensive listings which can be searched by country, sector, industry and listing.  There is also a useful commentary on investing in dividend stocks.


If you want to peak under the hood, you can always consult the portfolios of money managers.  Here are a few:

Richard Bernstein Global Advisors Global Dividend Kings

A unit investment trust that seeks total return through a combination of dividend income and capital appreciation. The stocks are selected for the trust by Richard Bernstein Advisors (RBA) using a comprehensive process.

The 10 Best Dividend Funds

Focus is on low cost funds offered by Vanguard and Fidelity.


A variety of screeners can be used to winnow down potential candidates for investment.  Here is one of them:

GlobeInvestor

A Few Observations

• There is no substitute for grunt work.  It provides you with a sense of the market space and over time, you develop a "view" which fits your investment style.  
• Ensure that the companies would make sound investments (whatever criteria you may use).   
• Consider the tax implications for dividend income e.g. dividend income can be sheltered in some investment vehicles.  (Wealth Daily Advice for a Canadian perspective.)