I have never been interested in buying stocks based on dividends but I do know there are investors who do that and want to hold these stocks forever. A similar philosophy of Warren Buffett. Or even what Robert Kiyosaki preached, invest for cash flow. Come to think of it, you go into business with the objective of making profits. Imagine that stock market does not exist and all businesses are privately owned, how would you evaluate which business to get into, if you have a chance to buy a piece of a company? You will definitely look into the earnings of the companies. You want to buy a business that can make money consistently.
Standard & Poor’s created a Dividend Aristocrats Index which tracks companies from S&P 500 that distribute growing dividends over the years.
| Companies |
% of earnings
distributed as
dividends |
Yield (%)
Based on
3 Nov Price |
| CENTURYTEL |
... |
...
