Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Dividend Paying Stocks > NetSparsh - Viral Content you Love & Share

Dividend Paying Stocks

I would like to share with the reader an article printed in the financial section of U.S.A. Today on March 7, 2003 which exemplifies the awesome power of a stock dividend.


Microsoft investors will get their first payday today, when the tech giant shells out its first dividend. At 8 cents a share, the dividend will cost the company $850 million. Co-founder Bill Gates, who owns about 1.2 billion shares will receive a dividend of $96.5 million. The dividend marks a shift for Microsoft, which had long hoarded cash - to the tune of $43.4 billion ? for research, acquisitions and legal claims.

After reading this article I couldn't help thinking about a report, which I believe stated that there were an estimated 33 million people in America living under the official poverty level. Bill Gates, by giving away his Microsoft dividend to those living under the poverty level could begin to create 96 millionaires, year after year after year. What a boost to the economy that would be! Imagine all those new millionaires every year spending money on something other than food, Salvation Army clothing and shelter.

Bill Gates (by giving away his Microsoft dividend) could begin to eliminate all the hardships for those people currently living under the poverty level.

Of course, I would probably start feeling sorry for all those people who were living right at the poverty level. I could almost hear Ma telling Pa now, "If we only didn't sell those $40.00 worth of aluminum cans, we could have been millionaires right now." Then again, those newly created millionaires would probably begin buying computers filled with Microsoft software and Bill Gates would start getting his money back. And, if that wasn't enough, the newly created millionaires probably hadn't read my book! They would probably start using their computers to start day trading in the stock market and end up right back where they started. Holy moly! I better finish this book or they won't stand a chance!

(Note: Bill Gates and family have already given millions and millions to charity. It was announced on CNBC that on April 24, 2003 Bill Gates had just donated 28 million dollars to S. Africa's AIDS program.)

As an individual investor in the stock market for almost 40 years I have found that companies that raise their dividend every year outperform those companies that stop or trim their dividends. For example, Dominion Resources had raised their dividend from 1984 to 1994 every year, and then stopped in 1994. Since then the company continues to pay a 64½ cent a share dividend, with a dividend yield of around 4 percent a year. The stocks performance since 1994 has been mediocre, rising in price from the 40 dollar range in 1994 to the 60 dollar range in 2004.

Now compare that stock's performance with Comerica, a company that has raised their dividend for the past 35 consecutive years. In April of 2003, Comerica's stock price was around 37 dollars a share, paying a dividend yield of around 5%. Today, July 20, 2004 the stock closed at $58.28 a share, paying a dividend yield of 3.57%. A $21.00 a share move in the stock in 1 year and 3 months and in March of 2005 the company will probably raise their dividend again for the 36th consecutive year. (By the way, Comerica's stock performance for the past 14½ years (just by having the dividends rolled back into the stock) has returned a little better than 15% a year, compounded annually.)

The simple point I'm trying to make is to invest in those companies that have a history of raising their dividend every year. There are hundreds of them. A company that just pays a dividend is not good enough; find those companies with a historical record of raising their dividend every year.


You have permission to this article either electronically or in print as long as the author bylines are included with a live link, and the article is not changed in any way (typos excluded.) Please provide a courtesy e-mail to telling where the article was published. (646 word count)

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. Author of the book 'The Stockopoly Plan', published by American-Book Publishing. For more excerpts from "The Stockopoly Plan' please visit

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at


Indians are starting to ditch gold and property investments for stocks and mutual funds, survey shows
Indians hold a relatively low percentage of their total wealth in financial assets but that trend might be changing, according to a Credit Suisse survey. The investment bank released its latest version of the Emerging Consumer Survey that interviewed ...

and more »

Investor's Business Daily

Best Growth Stock Mutual Funds Hog IBD Awards As Returns Surge
Investor's Business Daily
By comparison, no value stock funds made the winners' list this year, and the number of award-winning blend funds that have both growth and value components got cut in half to just 11. One year's outperformance is not all that's needed to win a Best ...

and more »

Investor's Business Daily

Best Sector Mutual Funds Drive Performance With FANG Stocks
Investor's Business Daily
This year the best sector mutual funds represented technology, defense and aerospace, media and telecom, health care and retail. Each of the top-performing sector funds not only surpassed the S&P 500 in the past one, three, five and 10 years, but was ...
IBD Announces Third Annual Best Mutual Fund Award WinnersGlobeNewswire (press release)

all 6 news articles »

The 5 Best Fidelity Stock Funds to Buy for the Long-Term
Kiplinger's Personal Finance
Some investors have given up on actively managed stock funds in recent years, instead turning to dirt-cheap index funds that passively track a benchmark. Index funds can get the job done. But the record of Fidelity's stock mutual funds makes a strong ...

and more »

Financial Planning

Don't Get Ripped Off By The Mutual Funds
Seeking Alpha
How many mutual funds would you guess outperformed the stock market since the bull run started nine years ago? If you guessed 1,000, 100 or even 10, you would be dead wrong, and even off by miles. In actual fact, not a single mutual fund has beaten the ...
Value funds with the best 3-year returnsFinancial Planning
Is Fidelity Asset Manager 50% (FASMX) a Strong Mutual Fund Pick Right Now?
Is BlackRock Equity Dividend A (MDDVX) a Strong Mutual Fund Pick Right Now?Nasdaq
all 10 news articles »


Fidelity Mutual Fund Performance Demonstrates Value Of Active Management
The growth surge was especially clear in the active management of mutual funds that outperformed their indexes by an average of more than 4% on an asset-weighted basis. Fidelity active managed money beat the overall market handily. Substantial ...

and more »


How Monitoring Mutual Fund Flows Gives Unique Stock Market Insight
I started my professional investment management career in 1996. Working at a multibillion-dollar asset management company headquartered in Chicago, I learned quickly how important the role of packaged products is in the investing world. The company I ...


Maligned stock pickers catch up to index funds. Can it last?
NEW YORK (AP) — Last year was a terrific one for nearly every stock investor as markets kept soaring higher. It was even better for one group that's among the most maligned on Wall Street. Mutual fund managers who pick stocks have fallen out of favor ...

and more »

Is T. Rowe Price Equity Income Fund (PRFDX) a Strong Mutual Fund ...
Having trouble finding a Large Cap Value fund? T. Rowe Price Equity Income Fund (PRFDX - Free Report) is a potential starting point. PRFDX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and ...
Is Eagle Mid Cap Growth A (HAGAX) a Strong Mutual Fund Pick ...Nasdaq

all 5 news articles »

Global fund's manager scores big gains with stock picks that may surprise you
Energy and commodity stocks around the world have lagged behind in the bull market because of oversupply or weak demand. Some investors, including Rob Young of Icon Funds, know just where to look. The Icon Natural Resources Fund ICBMX, -2.41 ...

Google News

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

3 Components Needed for Beating the Market

Time to look back2004 is over, now we are in... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

Big Buildings Can Mean Big Economic Disaster


Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Value Investing: Selecting From The Bargain Bin

Picking a beaten-down stock requires a different kind of selection... Read More

Humpty Dumpty the Stock Market Falls Down

Humpty Dumpty had a great fall and all the King's... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Smart Day Trading Strategies to Help You Make Money in the Stock Market

Stock trading can be a very profitable activity. You can... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Market Timing?

The recent criminal fiasco in the mutual fund industry is... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

Discover the Biggest Trading & Investing Online Mistake

Any online investor / trader seeks an excellent off or... Read More


During our travel down life's path we come to many... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

Leverage - Margin Debt

What is leverage?Here is a definition of leverage from an... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Overseas Investing: Going Against the Mainstream

TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More


For the year 2000 we have seen hundreds of mutual... Read More