Today I've created a small list of stocks with high dividend yields (over five percent) that are close to become a Dividend Champion in the upcoming years. Those stocks have raised dividends over more than 25 years in a row.
Dividend Growth is King
When you read my blog for a longer time, you should know that dividend growth is the key of a successful dividend investing.
In a non-performing market, dividends contribute 100 percent to the total performance or they can reduce their losses.
In my view, dividends are good enough to generate a solid cash income when the market suffers.
Over the past five years, this strategy failed because of the high intention of the Federal Reserve to reduce the unemployment via money printing. As a result, stock markets more than doubled in the most countries of the world and equities got very expensive.
Dividend yields of the best dividend paying stocks declined also by a few percentage points and investors often don't get a compensation for inflation now.
What we need are higher yielding stocks, but those are also more risky and sometimes overloaded with debt.
I've attached a list of the highest yielding potential dividend Champions. Only 13 companies with a consecutive dividend growth history of 10 to 25 years have a current dividend yield above the 5 percent ratio.
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