Top 10 Highest Yield Dividend Champions

Highest Yielding Dividend Champions

A key objective in Dividend Farming is the development of a cash flow stream through dividend payments.  Strategically speaking, it’s important that dividend growth is compounded at a rate greater than inflation e.g., Consumer Price Index (CPI).  If not, the purchasing power of your cash flow erodes over time. 

Inflation beating compound growth may be achieved in several ways.  Investing in firms growing dividend payments quickly, acquiring companies with stable dividend yields greater than the CPI, or a combination of the two are all possible.

The table below highlights Dividend Champions with the 10 highest dividend yields among those raising their dividends for 25 or more years as of 1.31.19.  These data points are drawn from the DRIP Investing site which is a great place to begin looking for solid dividend paying firms that can help build an inflation besting dividend stream.

10 Highest Yielding Dividend Champions
Company	Yield	Dividend Payment
AT&T Inc.	6.79	$0.5100
Altria Group Inc.	6.48	$0.8000
Tanger Factory Outlet Centers	6.15	$0.3500
Universal Corp.	5.20	$0.7500
Urstadt Biddle Properties	5.14	$0.2750
Helmerich & Payne Inc.	5.07	$0.7100
Mercury General Corp.	4.85	$0.6275
ExxonMobil Corp.	4.48	$0.8200
People's United Financial	4.27	$0.1750
Chevron Corp.	4.15	$1.1900

Full disclosure note:  AT&T and Altria are both in my portfolio and have been for years. 

With that said, firms in this list deliver dividend yields above the 2018 Consumer Price Index (CPI) as reported by the U.S. Bureau of Labor Statistics.  The All Items Index for the 2018 12-month period was 1.6%.  This means the companies shown provided a range of dividend payments more than twice the inflation rate to nearly 6 times as great!  These companies have been growing their payments for more than a quarter century and it stands to reason based on the previous Top 10 post regarding Dividend Champions that the growth will continue.

As an investor you have many choices.  Among those are growth company investments in which investors hope the companies grow as forecast.  Alternatively, you can dive into large, solid firms that aren’t Wall Street darlings but reliably put cash in your pocket every quarter.  Those cash payments compound until you’re ready to use them producing an amazing crop for your future self and family.  When that happens, you may look back at your past self and say thanks for choosing to become a Dividend Farmer.

The thoughts and opinions expressed here are those of the author, who is not a financial professional.  Opinions provided should not be considered investment advice.  They are presented for discussion and entertainment purposes only.  For specific investment advice or assistance, please contact a registered investment advisor, licensed broker, or other financial professional.