Post By Columnist Anthony Rivieccio
One of my Bronx Clients’ walked into my office the other day , very upset about Banks and their policy on Savings.
“Anthony, where can one save? I asked my Grandma and she told me to go to my local bank, so I went to my local bank and the interest rates on Savings Accounts & Certificate of Deposits totally sucks”.
My client is both right and wrong!
You can not expect to get good savings rates in today’s Banking institutions. For over 30 years, for many global reasons, interest rates have been cut. In some cases, by 80% .
On the other hand, Good Banking can be used very effectively, like with FREE Checking!.
But if you are looking for “old time” Savings Rates , that Grandma used to talk about, to try to achieve success in areas of College Savings or Retirement- it is time to look into the “New Time” world of investing:
Dividend Stocks!
Stocks provide “intrinsic value” and “a dividend or interest rate” payment. Dividend stocks provide both! While “intrinsic value” is never guaranteed, “dividend payments” are- by the health of the company- not The Government.
The largest aggregate dividend payers in the U.S. stock market would be large-cap companies.
They have the financial strength to pump out cash to shareholders on a regular basis.
By industry, two of the biggies are major oil companies, two are tech giants and two are the largest phone companies in the U.S. A healthcare company, a national bank, a consumer products company and an industrial conglomerate.
So, Here are the 10 biggest dividend payers according to S&P Dow Jones Indices.
If you’re considering these stocks for a dividend portfolio, note that seven of the 10 historically increase dividends in the first half of the calendar year.
All data as of Sept. 17, 2014. Dividend per share adjusted for stock splits.
10. Proctor & Gamble
Proctor & Gamble is a global consumer products company whose brands include Crest, Tide and Gillette.
Dividend Yield: 3.05%
Payment Date for Most Recent Increase: May 15, 2014
9. Wells Fargo
Wells Fargo went from a major regional bank to a national bank holding company with the 2008 acquisition of Wachovia.
Dividend Yield: 2.67%
Payment Date for Most Recent Increase: June 1, 2014
8. Johnson & Johnson
Johnson & Johnson, produces pharmaceuticals, medical devices and consumer products, operates in more than 60 countries worldwide.
Dividend Yield: 2.64%
Payment Date for Most Recent Increase: June 10, 2014
7. Chevron
Chevron is the world’s fourth largest oil company in terms of proven reserves.
Dividend Yield: 3.43%
Payment Date for Most Recent Increase: June 10, 2014
6. General Electric
General Electric is a major conglomerate and one of the original companies in the Dow Jones Industrial Average
Dividend Yield: 3.35%
Payment Date for Most Recent Increase: December 23, 2013
5. Verizon Communications
Verizon, the successor to two Baby Bells and GTE, is now the country’s leading mobile phone company.
Dividend Yield: 4.31%
Payment Date for Most Recent Increase: November 3, 20 14
4. Microsoft
Microsoft, is a major producer of computer software.
Dividend Yield: 2.41%
Payment Date for Most Recent Increase: December 11, 2014
3. AT&T
AT&T, one of the nation’s largest telecom companies, started life as Southwestern Bell in 1983 and grew through acquisitions.
Dividend Yield: 5.25%
Payment Date for Most Recent Increase: February 3, 2014
2. Apple
Apple, is the maker of iconic electronic devices including the iPhone and iPad.
Dividend Yield: 1.85%
Payment Date for Most Recent Increase: May 15, 2014
1. Exxon Mobil
Exxon Mobil is the world’s largest publicly traded international integrated oil and gas company.
Dividend Yield: 2.84%
Payment Date for Most Recent Increase: June 10, 2014
So, now you can tell Grandma that Banking , Today, vs 30 years ago, does not guarantee College or Retirement Growth- but to a large degree- Dividend stocks do!
Anthony Rivieccio is the founder & The CEO of The Financial Advisors Group, celebrating their 18th year as a fee only financial planning firm specializing in solving one’s financial problems. Anthony has been a recognized financial expert since 1986. He has been seen, heard or read by many national and local media outlets including: Klipingers Personal Finance Magazine, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet Channel 67 TV, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS1010 Radio, The Bronx News newspaper and this publication.
All opinions expressed by Editorialists & Columnists on this website and on the show are solely their own opinions and do not necessarily reflect the opinions of The Bronx Chronicle. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion.
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