Tuesday, February 17, 2009

Standard & Poor's Advises Caution In Chasing Dividend Yield

Howard Silverblatt, Senior Index Analyst with Standard & Poor's, prepared a list of 142 S&P 500 issues that have paid increased cash dividends (xls) for at least ten years in a row or have paid increased cash dividends in at least 20 out of the last 25 years. Additionally, Mr. Silverblatt included information on companies whose earnings covered twice the annual dividend payment.

A video discussion of dividends is available at this dividend video link. Not surprisingly, given the number of dividend reductions, Mr. Silverblatt advises caution in simply focusing on yield when selecting dividend paying stocks.

Source:

Good Dividend, Bad Dividend

BusinessWeek
By: Howard Silverblatt
February 11, 2009
http://www.businessweek.com/investing/insights/blog/archives/2009/02/good_dividend_b.html


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