The market is up. No, the market is down. Buy. Sell. What’s an investor to do during these dog days of summer? And those poor income investors, where can they earn a few pennies on their money?
Well, while headlines may focus on gyrating stocks and low, low, low interest rates, dividend-paying stocks are quietly bidding for your attention.
Yes, there are lots of companies willing to send regular checks to their shareholders. (Who doesn’t like to get a check in the mail?) Like any investment, there are no guarantees. But you might consider looking at some familiar names that have not only paid dividends year after year, but have a track record of increasing those dividends.
3M (MMM) has been sticking to that philosophy, having increased its dividend for 52 years running, and PepsiCo (PEP) has quenched the thirst for income with 37 years of rising dividends. I’m not suggesting you post yourself a note to buy or guzzle up shares of these stocks, but dividend growth can be a key component in your search for investment income.
Nearly 100 U.S. companies can tout a record of raising dividends for the past 25 years or more. What kind of companies? Well, if you think about the fast-food window you recently drove through, or the company that connected your last cell phone call, or the place you shop for low, low prices, or even the toothpaste with which you shine your pearly whites, well then, you not only know these companies, but you even love their products.
So if you do your research right, the check might just be in the mail. Really!
D. DRUMMOND OSBORN, CFP is a Certified Financial Planning practitioner and Director of Wealth Management at OSBORN Wealth Management, where he brings 25 years of retirement planning and investment management experience to every client. Have a personal finance question? Visit him on the web at www.osbornwealthmanagement.com or e-mail him at Drummond@osbornwealthmanagement.com.
