Stocks of these typically solid businesses outperform the market over the long term, with a dividend payout that cushions short-term dips in price. Dividend-payers are expected to be increasingly popular among baby boomers looking for a steady stream of revenue during retirement. Another bonus: The recently passed tax legislation extends for two years the maximum 15 percent tax rate on qualified dividends.
The so-called Dividend Aristocrats, 43 companies of the S&P 500 that have raised cash payouts to investors annually for at least the last 25 years, are "the cream of the crop," says Sam Stovall, chief investment strategist of Standard & Poor's Equity Research in New York. From Dec. 31, 2000, through Dec. 14, 2010, the Aristocrats collectively had a 101 percent cumulative total return, versus the S&P 500's 13 percent.
Stocks of these typically solid businesses outperform the market over the long term, with a dividend payout that cushions short-term dips in price. Dividend-payers are expected to be increasingly popular among baby boomers looking for a steady stream of revenue during retirement. Another bonus: The recently passed tax legislation extends for two years the maximum 15 percent tax rate on qualified dividends.
The so-called Dividend Aristocrats, 43 companies of the S&P 500 that have raised cash payouts to investors annually for at least the last 25 years, are "the cream of the crop," says Sam Stovall, chief investment strategist of Standard & Poor's Equity Research in New York. From Dec. 31, 2000, through Dec. 14, 2010, the Aristocrats collectively had a 101 percent cumulative total return, versus the S&P 500's 13 percent.
