This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

12 Dividend Growth Stocks to Buy Now

Stocks in this article: RCI BCE TWX AEP BDX INTC MSFT BMO BNS CM

NEW YORK ( TheStreet) -- For long-term investors living through The Great Contradiction, at least there's a bright side. Dividend-paying growth stocks continue to perform remarkably well.

I could not be happier with several of the dividend stocks I own.

A significant chunk of my portfolio sits in media and telecommunication giants Rogers Communications (RCI - Get Report), BCE (BCE - Get Report) and Time Warner (TWX - Get Report).

BCE Chart BCE data by YCharts

Each stock experienced a recent swoon. All three dips preceded excellent buying opportunities. Couple market-beating returns with dividend yields from 2.7% (TWX) to 4.0% (RCI) to 5.1% (BCE) and you have ideal core stocks for a volatile, low-interest rate environment. But it doesn't stop there.

When you buy stocks like TWX, RCI and BCE, you're not just allocating investment to some savings account alternative. You're buying three cash-flush and multi-billion dollar powerhouses well-positioned to realize long-term potential that's absolutely not priced into the stock.

While I love to speculate a bit more aggressively, I am also on the hunt for more of these relatively "safe" stocks. While there's no such thing as a safe stock market bet, compared to more speculative names, sturdy dividend payers offer a smaller degree of risk.

I expect to have at least some sort of a position in TWX, RCI and BCE for the foreseeable future. They represent three buys that I add to several times a month. I continue to look for dividend-paying stocks with similar attributes.

That process triggered several interesting stocks -- four that I am already long and another five that I can get long via an ETF that I used to own (sung to the tune of Gotye's "Somebody That I Used to Know").

Two Core Plays

I use Dividend Reinvestment Plans (DRIPs) to stay consistently long American Electric Power (AEP - Get Report) and Becton, Dickinson and Company (BDX - Get Report).

AEP Chart AEP data by YCharts

AEP tanked a bit earlier in the year on regulatory uncertainty in one of its largest markets, Ohio. After hitting lows in April, the stock has recovered by roughly 14%. Management cut AEP's dividend in 2003. They have increased it, however, every year but one since 2005 to its present $1.88 level. It looks stable.

I just got into BDX's DRIP on some weakness during the end of May. Here's another stock that's not all that exciting, but it pays a dividend that has a long history -- longer than AEP's -- of going up.

I write a check to each stock's DRIP every month alongside an automatic monthly investment and then forget that I own them.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,451.72 +64.51 0.37%
S&P 500 2,031.47 +1.92 0.09%
NASDAQ 4,697.9180 +16.4210 0.35%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs