Sunday, January 6, 2008

High quality dividend stocks.

Dividend stocks shouldn't miss in your portfolio for 2008. If you run stock screening for large cap (over $5 bil. market cap) with low P/Evaluation you get mostly financial companies. Dividend yields are tempting but I'd stay away. Those are with high probability for dividend payment cuts. Other sectors with juicy dividends are telecommunications, food & beverages and health care. Especially last one is good pick in current turmoil as health care is very defensive. List below contains large caps with low valuations and coming from "safe" sectors.
General Electric keeps steady growth exceeding 10%. General Mills is stock with very low volatility and could be seen as a safe pier.Kimberly Clark is spreading the wealth around to shareholders. 2007 buybacks hit $2.8 billion. And Anheuser-Bush raised prices to cover higher costs for commodities.

CompanyP/EDividend yield
GlaxoSmithKline (GSK)13.44.2
AstraZeneca (AZN)10.94.1
Telecom Italia (TI)164
General Electric (GE)16.83.4
General Mills (GIS)16.82.8
Merck (MRK)23.12.7
Kimberly Clark (KMB)16.93.1
Anheuser-Busch (BUD)18.92.5


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