Stocks paying dividends are back in fashion among investors worldwide. Of course financial stocks that usually pay high dividends are not the favorite now. But other dividend stocks in sectors such as consumer staples, utilities, transportation, etc. are definitely worth looking at for long-term investment options.
Dividend stocks in some countries have performed much better than dividend stocks in other countries. For example, the components in the Dow Jones U.S. Select Dividend Index have generated an annualized total return of 4.97% in the last 10 years. Total return is the dividend return + capital appreciation. The yield of this index as of Dec 31,2008 is 5.48%.
On the other hand, the stocks in the Dow Jones Canada Select Dividend Index has yielded 7.80% total return per year in the same 10 years. Thats 2.83% higher than the US index. If we take the foreign exchange into consideration that may be a bit smaller. The yield of this index as of Dec 31,2008 is is 6.06%.
One easy way to identify high dividend stocks is to review the various dividend indices published by providers such as S&P, Dow Jones, etc. Click on the following links to download the Factsheets of Dividend Indices offered by Dow Jones (files will open in pdf):
1. Dow Jones Global Select Dividend Index
2. Dow Jones U.S. Select Dividend Index
3. Dow Jones Asia Select Dividend 30 Index
4.Dow Jones Asia Pacific Select Dividend 30 Index
5.Dow Jones Australia Select Dividend 30 Index
6.Dow Jones Canada Select Dividend Index
7.Dow Jones EPAC Select Dividend Index
8.Dow Jones France Select Dividend 20 Index
9.Dow Jones Germany Select Dividend 20 Index
10.Dow Jones Italy Select Dividend 20 Index
11.Dow Jones Japan Select Dividend 30 Index
12.Dow Jones Netherlands Select Dividend 15 Index
13.Dow Jones SWX Select Dividend 20 Index
14.Dow Jones Spain Select Dividend Index
15.Dow Jones Sweden Select Dividend 15 Index
16. Dow Jones U.K. Select Dividend 20 Index
For more indices such as:
The S&P/TSX Canadian Dividend Aristocrats Index
The S&P 500 Dividend Aristocrats Index
The S&P Europe 350 Dividend Aristocrats Index
Click here.
