The Best Dividend Paying Stock Portfolio Brings You 8.71% Yearly Return

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Nov 08, 2012
Out there are so many stocks that investors can buy and many are very confused about the fundamentals and data overflow. They may ask themselves, "What dividend stocks should I buy?" You can follow so many stock buying approaches like the Dividend Aristocrats, or Dogs of the Dow Jones. You can follow ETFs or cover a simple index of dividend stocks to buy those that have outperformed the market. Not all of these strategies are of success. Today, I like to show you what kind of profit you could make by buying dividend stocks and holding them over a very long period. I selected a portfolio of 24 best dividend-paying stocks with a well-diversified product portfolio.

Over the past 10 years, stocks from the portfolio grew in average by 148.48% including dividends. This represents an annualized return of 8.71%. Not much but enough for beating inflation and increasing your private wealth.

Here is the link to the portfolio: Best Dividend Paying Stocks Portfolio.

Not all of the stocks have a buy or better recommendation for the time being. Only four companies of the best dividend-paying stock portfolio are currently recommended. These are the results of dividend stocks to buy:

Chevron Corporation (CVX) has a market capitalization of $207.73 billion. The company generates revenue of $253.706 billion and has a net income of $27.01 billion. The firm's EBITDA amounts to $60.55 billion. The EBITDA margin is 23.86% (operating margin18.78% and net profit margin 10.65%).

The total debt represents 4.85% of the company's assets and the total debt in relation to the equity amounts to 8.36%. Last fiscal year, a return on equity of 23.75% was realized. Twelve trailing months earnings per share reached a value of $12.19. Last fiscal year, the company paid $3.09 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.68, Price/Sales 0.83 and Price/Book ratio 1.75. Dividend Yield: 3.35%. The beta ratio is 0.80.

Johnson & Johnson (JNJ) has a market capitalization of $191.58 billion. The company generates revenue of $65.03 billion and has a net income of $9.67 billion. The firm's EBITDA amounts to $15.99 billion. The EBITDA margin is 24.59% (operating margin19.01% and net profit margin 14.87%).

The total debt represents 17.27% of the company's assets and the total debt in relation to the equity amounts to 34.39%. Last fiscal year, a return on equity of 17.02% was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $2.25 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 22.88, Price/Sales 2.98 and Price/Book ratio 3.36. Dividend Yield: 3.47%. The beta ratio is 0.55.

Northeast Utilities (NU) has a market capitalization of $12.00 billion. The company generates revenue of $4.47 billion and has a net income of $400.51 million. The firm's EBITDA amounts to $1.096 billion. The EBITDA margin is 24.55% (operating margin17.78% and net profit margin 8.97%).

The total debt represents 34.36% of the company's assets and the total debt in relation to the equity amounts to 130.20%. Last fiscal year, a return on equity of 10.09% was realized. Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, the company paid $1.10 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.14, Price/Sales 2.70 and Price/Book ratio 1.69. Dividend Yield: 3.58%. The beta ratio is 0.48.

Northwest Natural Gas (NWN) has a market capitalization of $1.15 billion. The company generates revenue of $848.80 million and has a net income of $63.90 million. The firm's EBITDA amounts to $214.85 million. The EBITDA margin is 25.31% (operating margin 17.06% and net profit margin 7.53%).

The total debt represents 29.98% of the company's assets and the total debt in relation to the equity amounts to 115.23%. Last fiscal year, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, the company paid $1.75 in the form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 19.00, Price/Sales 1.37 and Price/Book ratio 1.63. Dividend Yield: 4.19%. The beta ratio is 0.26.

Take a closer look at the current valuation of the best dividend paying stock portfolio. The average P/E is 19.12 and the dividend yield amounts to 4.26%.

Related stock ticker symbols:

MCY, WPC, T, UHT, VVC, CIZN, PWOD, VZ, O, COP, ED, WGL, NWN, AROW, LLY, PNY, ATO, NU, KMB, CLX, JNJ, CVX, ABT, CL

Best Buying Dividend Stock Strategy Researched by Dividend Yield - Stock, Capital, Investment.