The Ultimate Cheat Sheet to Find the World’s Best Dividend Stocks

If paying real cash to shareholders repeatedly is the sign of a strong business, paying more and more cash each year is perhaps the strongest sign of all…

Stock prices may go up or down. But if you invest in a special type of dividend stock, the income streams only go in one direction: up. And they go up year after year, no matter what crisis the news is talking about this week.

So… How do you find these stocks?

Luckily, all it takes is the simple click of a mouse. Below, I’ll show you a simple dividend-investing shortcut that will help you find the world’s greatest dividend stocks…

Let’s get started…

Financial-services and research giant Standard and Poor’s (S&P) maintains an index of companies that have not only paid consistent dividends but have also increased their dividend payment each year for the past 25 years. They are called the “Dividend Aristocrats.”

For investors who reinvest dividends, the effect of growing dividends is even stronger. You are taking dividends to buy more shares of a company that is constantly paying bigger dividends… with which you can then buy even more shares.

As a result, the index outperforms the market handily…

All of the 52 Dividend Aristocrats are large and well-established members of the S&P 500, with average market caps of more than $60 billion. The index includes many names you may know from your daily life, like food company Hormel Foods (HRL), spice maker McCormick (MKC), and toolmaker Stanley Black & Decker (SWK).

You can gain quick exposure to all of the Dividend Aristocrats by purchasing the ProShares S&P 500 Dividend Aristocrats Fund (NOBL). The fund has low turnover, a relatively low expense ratio of around 0.35%, and currently yields about 1.5%.

If you’re looking for individual stock ideas, the list of Dividend Aristocrats is a great place to start. While S&P itself won’t give you the full list (it wants you to pay for it), the ProShares fund has to disclose all of its holdings. So you can find the current Dividend Aristocrats right here.

S&P also tracks a more aggressive index called the “High-Yield Dividend Aristocrats.” This list tracks stocks that have raised their dividends for at least 20 years, and it expands its pool to include smaller companies that are in the S&P 1500.

That means the average market cap drops to around $40 billion, with some as small as $2.3 billion. You can use the SPDR S&P Dividend Fund (SDY) to invest in these stocks with a 0.35% expense ratio. With smaller stocks in play, this fund is riskier than the traditional Dividend Aristocrat fund, but it pays a higher yield at 2%.

Collecting dividends should be a central feature of your investment philosophy. Understanding how they work and how to evaluate them is the first step to becoming a successful investor.

If you’re looking for a one-stop shop when it comes to dividend investing, the funds I mentioned above are a great place to start. And simply taking a look at their holdings is the ultimate “cheat sheet” for discovering the best dividend stocks in the world.

Here’s to our health, wealth, and a great retirement,

Dr. David Eifrig

Editor’s note: Dividend stocks are a great option for income investors. But Doc is even more bullish on another area of the market that sports yields of 8% or more. Learn more about this incredible, little-known opportunity by clicking here.

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About the Author: Daily Wealth

Dr. Steve Sjuggerud is the founder and editor of one of the largest financial newsletters in the world, True Wealth. Since inception in 2001, True Wealth readers have made money every year with safe, contrarian investment ideas.

Steve did his Ph.D. dissertation on international currencies, he’s traveled to dozens of countries looking at investment ideas, and he’s run mutual funds, hedge funds, and investment research departments.

Steve’s investment philosophy is simple: “You buy something of extraordinary value at a time when nobody else wants it. And you sell it at a time when people are willing to pay any price to get it.” It’s harder than it sounds, but Steve continues to be able to do just that for his readers.

Click here to read classic issues of True Wealth.

  • JohnDille

    MAYBE 30 PLUS YEARS OF RIGHT WINGERS OUT TO GET THE CLINTONS… BECAUSE THEY WERE NOT PART OF THE GOOD OLD BOY NETWORK DOWN IN ARKANSAS…. AND LATER… NOT PART OF THE GOOD OLD BOY SOUTHERNERS WHO HAVE RUN WASHINGTON DC FOR MOST OF ITS HISTORY… HAVE GENERATED A MASSIVE PILE OF RIGHT WING LIES AND LIBELS AND SLANDERS… ALL AIMED AT BILL… AND NOW HILLARY… CLINTON!!! ARE ANY OF THE MOUNTAINS OF ALLEGATIONS AGAINST THEM TRUE??? THERE IS PROBABLY SOME SMOKE IN THERE… BUT CLEARLY NO FIRE…. OTHERWISE THE CLINTONS WOULD HAVE BEEN IN PRISON FOR MOST OF THE LAST 40 YEARS OR SO! BECAUSE THE GOOD OLD BOY NETWORK HAVE BEEN TRYING… AND TRYING… AND TRYING… AND TRYING… TO PUT THEM BEHIND BARS… OR TO AT LEAST DRIVE THE CLINTONS OUT OF OFFICE…. BUT THEY HAVE NEVER SUCCEEDED… BECAUSE… OUTSIDE OF BILL LIKING YOUNG WOMEN MORE THAN HE SHOULD… THERE JUST ISN’T MUCH REAL HARD EVIDEINCE TO BACK UP ALL THE RIGHT WING LIES AND LIBELS AND SLANDERS!!! WHICH IS HARDLY SURPRISING… ALL THAT THE FAR RIGHT IS CAPABLE OF DOING IS… TO TRY TO BRING DOWN ANYONE WHO DISAGREES WITH THEIR FASCIST TACTICS AND RIGHT WING RACIST ATTITUDES AND PRACTICES IS… TO SPREAD LIES AND INNUENDOS AND RUMORS AND SLANDERS AND LIBELS! BECAUSE THEY KNOW THAT TENS OF MILLIONS OF AMERICA HATING RIGHT WINGERS WILL BUY INTO ALL THAT STEER MANURE!!! RIGHT WINGERS ARE STUPID AND CORRUPTED IN THAT SORT OF WAY!!!

  • berky

    no one needs to make up lies about her. she does that herself, openly.

  • JohnDille

    DANG!!! WHAT HAPPENED TO ALL THE RIGH WING LIARS AND BASHERS AND AMERICA HATERS??? THEY SEEM TO HAVE CRAWLED BACK UNDER THEIR ROCKS! DONALD TRUMPS DISASTROUS ATTEMPT TO DRUM UP BUSINESS BY RUNNING FOR PRESIDENT SEEMS TO HAVE EMBARRASED HIS SUPPOTERS INTO GOING INTO HIDING!! BUT… NO DOUBT,, THEY WILL BE BACK! THEY WILL FIND ALL KINDS OF ALLEGED FLAWS IN CLINTONS PRESIDENCY, AND WILL MANAGE TO MAKE UP ALL KINDS OF LIBELS AND LIES AND SLANDERS AND LIES ABOUT HER AND HER POLICIES!!! BECAUSE… HEY… THAT IS ALL THAT RIGHT WINGERS ARE CAPABLE OF DOING!!! THAT AND BASHING AMERICA AND ITS FINANCIAL MARKETS, OF COURSE!!!