It's clear that many investors clawed by the bear market have found the lure of a solid, regular dividend hard to resist. But wouldn't a steadily rising payout be even better?
LONG LOOK BACK. "Although there are no guarantees, companies that regularly increase dividends are a good bet to continue doing so and are ideal for long-term investors," note S&P's Joseph Lisanti and Joseph Tigue in their book The Dividend Rich Investor.
That's the idea behind this week's screen. We searched for stocks in the S&P 500 that have increased their dividends in each of the last 40 years. And while Lisanti and Tigue point out that stocks with low but increasing dividend yields are a better choice than those with high current dividend yields, these steady growers have an added kicker -- they each have a higher current yield than the S&P 500.
Our search yielded these six names:
Rising dividends, above-market payouts
S&P STARS Rank
3M Corp. (MMM
Emerson Electric (EMR
Johnson & Johnson (JNJ
Procter & Gamble (PG
Teco Energy (TE
Kaye is a portfolio services analyst for Standard & Poor's