Dividend stocks are always the hot favourites among shareholders. Dividends not only provide a reasonable return on investment for the shareholders from time to time, but also provide the right signals to the stakeholders that the company is doing well in the market. There are so many stocks out there paying dividends on a regular basis. Which would you choose? The answer is simple. As an investor, you must not only look at the dividends that a particular stock is paying currently, but you must also see the growth rate of dividend of a particular company when compared to the last year or last two years and how consistently dividends were paid out. The three companies mentioned herewith, are examples of ones that have shown a reasonable increase in dividends or the ones that have been paying dividends for many years now.
Vector Group
Vector Group (VGR, Financial) is one of the leaders in the tobacco industry. For the last 20 years, this company has been paying out dividends to its shareholders with reasonable increases annually. One of the main reasons that worked in favour of Vector Group and made it one of the most reliable stocks in the market today, is its stake in the retail sector as well. Vector Group has a considerable stake in Douglas Elliman, the largest residential real estate brokerage firm in New York. The real estate industry has been performing excellently over the years, which has added value to Vector Group’s stocks. If, anytime during the future, Vector Group decides to sell off its stake in the real estate industry, it will have immense amounts of cash with it, to pay off its shareholders.
Vector Group’s dividend yield and dividend history have been rated as “Excellent” by trade experts. Currently the dividend per share of Vector Group is $1.60 per share and the dividend yield is 7.1%. This is the chart that shows the dividend history of Vector Group. Though the increases have not been so great, the very fact that the company has been paying out dividends for two decades now, makes it one of the most-respected stocks of 2015.
Kinder Morgan
If there is one company that assures you of a high dividend yield and prospects of high returns in the near future, it is Kinder Morgan (KMI, Financial), the fourth largest energy company in North America. Dips in oil prices notwithstanding, Kinder Morgan is a dividend stock that you can place your bet on, for 2015, because it bought all its subsidiaries recently, thereby increasing its dominance in the energy sector to a great extent. Network of natural gas pipelines with Kinder Morgan, is the largest in the U.S. and this explains why the company has been able to figure in this list of top dividend stocks of 2015. Since all subsidiaries are now grouped as one single entity, management has become easier, instilling more confidence in the minds of the investors.
The annual dividend of Kinder Morgan is $1.76 per share and it is expected to go up to $2 per share in 2015. The current dividend yield is 4.18%. It is just three years since the group has started to pay out dividends, but due to this massive growth rate, it has figured in the top 3 dividend stocks of 2015. Here is the chart showing the dividend history of Kinder Morgan for the last 3 years.
Apple
Last but not the least we have the technology giant, Apple (AAPL, Financial) on our list of the best dividend stocks of 2015. It is no surprise that Apple has managed to find its name here, though it has been paying dividends only for the last 3 years. Apple has a huge surplus of free cash flow lying in its books that promises shareholders of assured growth in the future. In the last two years alone, the growth rate of Apple’s dividends stood at an impressive 11.2%. Is there anything more that shareholders can ask for?
Added to this fact, Apple was involved in stock buyback options, adding value to its shareholders’ worth. Repurchases worth $67.9billion and pay-outs to shareholders in the form of dividends to the tune of $11.1 billion for 2014, has made Apple one of the most looked-forward to dividend stocks of 2015. Currently Apple offers a dividend per share of $1.88 and the dividend yield of the company is 1.67%. The following is the table showing the dividend pay-out of the company for the last 3 years.
Conclusion
Growth potential and consistency of payment are very important for a stock to be considered as a great dividend stock. Though the share prices of these companies are not that cheap, it is worth investing in them, because shareholders can be assured of their returns. All the three mentioned above, are way ahead of their peers, when it comes to dividend pay-outs. Their financial health is very positive indicating that they have a stable and successful future ahead. This makes them the darling of the investors.
