Safe Dividend Income Investment

The Dividend Aristocrats is a prestigious group of stocks on the Standard and Poor 500.

The dividends of these prime stocks have been raised every year for over 25 years. Each is considered a safe dividend income investment. Currently, there are 42 stocks on the Dividend Aristocrats list; all of them have consistently raised their dividend each year for a quarter century.

The highest yielding Dividend Aristocrats

The average dividend yield of all 42 stocks on the Dividend Aristocrats is 2.65%. However, the five stocks with the highest dividend yields on the Dividend Aristocrats all post yields of over 4%, and are extremely profitable, trustworthy companies.

1) Century Link Inc. (CTL) is currently the highest yielding stock with a 6.30% dividend yield. A telecommunications stock with a market cap of 14 billion, it has dispensed a consistently hefty dividend.

2) Pitney Bowes (PBI), a mail service company with a 4.9 billion market cap, has a current dividend yield of 6.05%.

3) Cincinnati Financial Corporation (CINF), an insurance provider at 5.2 billion market capitalization, has a 5% yield.

4) Consolidated Edison Inc. (ED), a holding company with 14.3 billion market cap, has a dividend yield of 4.80%.

5) The 4.70% yield of Leggett and Platt (LEG), a device-building company with a market capitalization of 3.4 billion, makes it a very worthwhile investment.

Importance of the 25 year benchmark

Although the prices of dividend stocks tend not to rise dramatically, the best dividend stocks are reliable, with profitable yields. The Dividend Aristocrats are committed to offering a dividend, raising it every year to keep their loyal investors happy. They have grown so large that the most profitable way to profit the shareholders is to offer the cash dividend, a process usually done quarterly. Consequently, they are considered the most dependable dividend stocks on the Exchange.

Many companies offer dividends, but not consistently. These companies are not stable. The board of a such a company may increase the dividend to entice investors, and then promptly lower it the following year. A dividend aristocrat company having increased its dividend for a quarter century makes it a safe dividend income investment.