1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dividends4Life
Dividends4Life
Articles (956) 

10 Big-Name Dividend Stocks Crushing the S&P 500

Most every investor has a benchmark they are trying to beat. For many investors, that benchmark is the S&P 500. It is easily followed and can be directly invested in via many different index funds such as SPDR S&P 500 (SPY) and Vanguard 500 Index Inv (VFINX).

After several years of out-performing the S&P 500, many dividend income oriented portfolios have under-performed in 2012. The old adage that trees don't grow to the sky certainty holds true. Obviously, that is not to say that all dividend growth stocks have under-performed.

If we look carefully we can find some gems that have performed quite well so far this year. Below are several multi-billion dollar dividend stocks that have out-performed the S&P 500 this year through August 31, 2012:

3M Co. (NYSE:MMM) is a diversified global company that provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives.

Mkt. Cap: $64b | Yield: 2.5% | Adjusted Return: 15.6%

Kimberly Clark Corp. (NYSE:KMB) is a global consumer products company's producing tissue, personal care and health care products. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex and Scott.

Mkt. Cap: $33b | Yield: 3.5% | Dividend Adjusted Return: 15.9%

Lockheed Martin Corp. (NYSE:LMT) is the world's largest military weapons manufacturer, is also a significant supplier to NASA and other non-defense government agencies. LMT receives about 93% of its revenues from global defense sales.

Mkt. Cap: $29b | Yield: 4.4% | Dividend Adjusted Return: 16.6%

Colgate-Palmolive Company (NYSE:CL) is a major consumer products company markets oral, personal and household care and pet nutrition products in more than 200 countries and territories.

Mkt. Cap: $50b | Yield: 2.3% | Dividend Adjusted Return: 17.2%

Raytheon Company (NYSE:RTN), the world's sixth largest military contractor, specializes in making high-tech missiles, advanced radar systems and sensors, defense electronics, and missile-defense systems.

Mkt. Cap: $19b | Yield: 3.5% | Dividend Adjusted Return: 19.0%

Abbott Laboratories (NYSE:ABT) is a diversified life science company that is planning to split into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals.

Mkt. Cap: $103b | Yield: 3.1% | Dividend Adjusted Return: 19.5%

Microsoft (NASDAQ:MSFT), the world's largest software company, develops PC software, including the Windows operating system and the Office application suite.

Mkt. Cap: $258b | Yield: 2.6% | Dividend Adjusted Return: 21.1%

Wal-Mart Stores, Inc. (NYSE:WMT) is the largest retailer in the world,Wal-Mart operates a chain of over 10,000 discount department stores, wholesale clubs, supermarkets and supercenters.

Mkt. Cap: $246b | Yield: 2.2% | Dividend Adjusted Return: 23.8%

AT&T Inc. (NYSE:T) provides telephone and broadband service and holds full ownership of AT&T Mobility (formerly Cingular Wireless).

Mkt. Cap: $211b | Yield: 4.8% | Dividend Adjusted Return: 26.2%

Illinois Tool Works Inc. (NYSE:ITW) is a diversified manufacturer operates a portfolio of 60 business units that serve industrial and consumer markets globally.

Mkt. Cap: $28b | Yield: 2.6% | Dividend Adjusted Return: 28.6%

Over the same period the S&P 500 (SPY) was up 13.6%. The returns were calculated using Yahoo's dividend adjusted stock price for December 31, 2011 as the starting point. Short-term performance is never the sole reason for long-term investors to buy. What goes up significantly usually comes back down. Case in point, McDonalds (NYSE:MCD) has routinely been one of my best performing dividend growth stocks; however, this year the stock is down 8.8%.

Full Disclosure: Long VFINX, MMM, KMB, LMT, CL, RTN, ABT, MSFT, WMT, T, ITW, MCD. See a list of all my dividend growth holdings here.

Related Articles

- Dividend Stock Bubble: Is It Even Possible?

- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend

- Holding Bonds Could Push Your Portfolio Into The High Risk Category

- Love People, Use Dividend Stocks

- The 2012 Dividend Achievers

About the author:

Dividends4Life
Visit Dividends4Life at:
http://www.dividend-growth-stocks.com/

Rating: 3.7/5 (10 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


pbarker46dividend stocks
daltechrao2
TFCDebt Free Div Payer
KetsinyongEV
gericomROE
gjjbrownGarrys
AlainTecran 4
rjainCA
thanut7US GROWTH
thanut7THAI GROWTH

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK