The 8 Best Stocks For 2015

The 8 Best Stocks For 2015

One of the best criteria for deciding whether to hold or buy a stock is the dividend it produces. The dividends for the companies listed in the S&P 500 have, on average, been growing at double digit rates over the past couple of years. There are indications that this is about to change. Many of those same companies are increasingly re-directing their profit towards capital spending and reducing the amount of cash they send to shareholders.

If you want to buy stock that will continue to pay out dividends at rates in line with the last few years, you should look to a select group of companies.

Kiplinger Magazine has an article that analyzes 8 such corporations.

They include the following:

• ?JPMorgan Chase
• Wells Fargo
• Boeing
• General Electric
• Honeywell International

The full list can be seen here. Some on the list are not surprising. General Electric seems unstoppable as an industrial force. It is likely to remain very good to its shareholders for the foreseeable future. The same goes for JPMorgan, Boeing, and Honeywell.

I was surprised, however, by the wealth of Wells Fargo. According to the article, the company came through the recent financial crisis in pretty decent shape. It goes on to explain:

As of the end of last year, about 95% of Wells Fargo?s deposits were in low-yielding checking and savings accounts, one of the highest percentages in the industry. A rise in long-term rates would allow Wells to charge more for loans and increase the spread between its loans and its low-rate (or zero-rate) deposits. Wells has raised its dividend each year since 2011, and analysts at Keefe, Bruyette & Woods expect the company to hike the payout by 10.4% in 2015.

This is encouraging news. And the price of the company?s stock is much lower than the others I mentioned above, so you might actually get a better deal.

In any case, as you start thinking about your financial portfolio for the coming year, it is worth taking a close look at the dividends paid out by each of the stocks you own. It might be time to make some changes.