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Three Dividend-Paying Stocks to Buy on the Dip

NEW YORK ( TheStreet) -- Higher interest rate concerns have many investors wondering if stock dividend yields matter as much. I'm here to give a resounding yes to that question.

In fact, while fixed income may be taken out back to the woodshed, dividend-paying stocks continue offering upside capital appreciation while paying investors to sit and wait.

Not quite sure? Take a look at my last 2012 dividend article "Buy and Forget These 5 Dividend Stocks in 2013." By comparison, the S&P 500 ETF (SPY) is up about 12% during the same time period. After adjusting for dividends, my list becomes even more impressive.

Corning (GLW) + 13.35%

Coca-Cola (KO) + 9.2%

Wells Fargo (WFC - Get Report) + 19.84%

Intel (INTC) + 17.99%

General Electric (GE - Get Report) + 12.90%

All but one beat the market average, and as a whole I beat the average by several percentage points (plus the difference in dividend payments). It's hard to argue that Coca-Cola is a loser because investors "only" made about 10% since the start of 2013.

More importantly, I have a new list to present for your review. I've remained bullish with some names for some time now.

I'm quite excited about the opportunities from the market weakness. Recent declines in share prices have opened the door to take advantage of buying dips.

For long-term investors, it's hard to beat the outperformance of dividend-paying stocks. Historically, if you avoid yield traps and stick with boring, albeit growing, companies that have a history of increasing their dividends, you will beat the market. It's not rocket science, and it doesn't require paying an investment adviser. Buying dividend leaders has worked through bull and bear markets.
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DD $64.83 -1.88%
GE $30.63 -0.84%
WFC $50.00 -1.17%
AAPL $95.18 1.64%
FB $117.43 -0.96%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

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