Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.



The Royal Treatment Isn’t Good Enough

By Ari Charney on June 4, 2017

If it’s good to be an aristocrat, then surely it’s even better to be the king.

No, I’m not talking about the fat cats on Wall Street. As an income investor, you’re likely familiar with the S&P 500 Dividend Aristocrats. These are the elite companies that have boosted their payouts every year for at least 25 consecutive years.

Sounds great, right? Well, then let me introduce you to the Dividend Kings. These are companies that have boosted their payouts every year for at least 50 consecutive years. Now, that’s what I’m talking about!

If you’ve ever suffered a dividend cut and the associated collapse in share price, then you’re probably salivating at the prospect of investing in stocks with such royal pedigrees. After all, any company that’s managed to increase its payout through multiple booms and busts clearly understands the sanctity of the dividend.

Unfortunately, it’s not that simple. While a steadily rising dividend over such a long period is a powerful signal of a company’s fundamental strength, it’s not the only thing that matters.

Indeed, we want income and growth. Strong earnings growth drives strong dividend growth, which, in turn, drives strong share-price appreciation. Yep, we want it all.

There’s no question that the Dividend Aristocrats and Dividend Kings have delivered growing incomes to many investors over the long haul. But they don’t always measure up in terms of total return.

At Investing Daily’s Utility Forecaster, there are two Dividend Aristocrats listed among the utilities in our coverage universe:

AT&T Inc. (NYSE: T)
Consolidated Edison Inc. (NYSE: ED)

And we also track five Dividend Kings (note that unlike the Aristocrats, the Kings don’t have to be in the S&P 500 to wear the crown):

American States Water Co. (NYSE: AWR)
California Water Service Group. (NYSE: CWT)
Northwest Natural Gas Co.  (NYSE: NWN)
Vectren Corp. (NYSE: VVC)

But only one of these seven companies currently merits inclusion in our portfolios at present.

Over the trailing 10-year period, the two Dividend Aristocrats and five Dividend Kings generated total returns of 9.6% annually and 7.6% annually, respectively.

That’s pretty good, especially considering that the S&P 500 returned 6.9% annually over the same period.

But the Top 5 Picks in our Growth and Income Portfolios performed even better. The Income Portfolio’s Top Picks returned 11.9% annually, while the Growth Portfolio’s Top Picks returned 11.4% annually.

These differences in returns may not sound like all that much when expressed in annualized terms, but over the full period the narrowest gulf between the two sets of returns adds up to a significant 44 percentage points.  

To be sure, all four cohorts benefit, to a certain extent, from survivorship bias. But the comparison underscores the possibility of taking a good thing and making it even better.

The Dividend Arrivistes

Most utilities, even those that have yet to become Aristocrats, have offered steady dividend growth for many, many years.

That opens up the possibility of redefining what it means to be royalty. After all, if a company has sustained a dividend with no cuts for decades, while generating steady annual dividend growth for eight to 10 years or even longer, then most income investors would probably consider that a pretty compelling investment.

When that stock also has other appealing fundamental factors, including strong projected earnings and dividend growth, along with manageable debt and payout ratios, then it becomes even more compelling.

And if the stock has all those characteristics and also trades at a reasonable valuation relative to its peers, well then we would argue that’s more than enough to constitute royalty.

In preparation for the next issue of Investing Daily’s Utility Forecaster, we’ll be looking for the select few stocks that fulfill these demanding criteria. At the moment, there may only be one, or there may be several that qualify, but are too expensive right now.

Thankfully, share prices fluctuate, which means if these stocks have everything else going for them, then we’ll eventually have an opportunity to pick them up at a reasonable price.

You might also enjoy…


Boost Your Annual Income By As Much As $12,036

We’ve uncovered a unique income-boosting opportunity that allows you to collect up to $1,003 a month in extra government cash. 

This plan is available to everyone over the age of 18.

The amount you make isn’t dependent upon your marital status…

How much money you currently make…

Or even how much money you made in the past.

Best of all, because of the way Uncle Sam views the money that comes from this plan, your current—or future—Social Security benefits won’t be affected, either. 

There’s still time to get your name on the list for the next check run. 

I’ll show you how here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.