Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

4 Consistently High Paying Dividend Stocks With Growth Potential

The ‘holy grail’ of dividend growth investing is to find businesses that offer:

– Growth potential

– High dividend yields

– Consistent and safe operations

This article takes a look at 4 businesses that have:

– High dividend yields above 4%

– Above average total return potential

– Consistent operations backed by a long dividend history.

This combination is difficult to find in today’s low interest rate environment. Low interest rates increase the share prices of high dividend stocks, reducing their yields.

10 Year Treasury RateSource:

You can see the effect of rising interest rates on the S&P 500’s dividend yield.

S&P Dividend Yield

The trade off between growth and dividends makes it difficult to find stocks with both a high payout ratio and solid growth prospects.  The more a company pays out in dividends, the less it has to reinvest in growth.

Management must be very efficient with its capital allocation policies to have both a high dividend payout ratio and solid growth prospects. There is less room for error.

Finding businesses that consistently pay steady or rising dividends and have safe operations is difficult. Strong competitive advantages in the business world are rare. There are only around 180 stocks that have paid steady or increasing dividends for 25+ years.

Businesses with long dividend histories have proven the stability of their operations.

High Dividend Stocks

Consistent High Yield Stock #1: AT&T Inc. (NYSE:T)

AT&T stock currently offers investors a 5.2% dividend yield. This is more than double the S&P 500’s current 2.4% dividend yield.

AT&T has paid increasing dividends for 32 consecutive years. As a result AT&T is member of the exclusive Dividend Aristocrats Index. To be a Dividend Aristocrat a stock must pay increasing dividends for 25+ years.  Click here to see all 50 Dividend Aristocrats.

The company’s dividend payment history is shown in the image below.

AT&T Dividend HIstory

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.