List of Stocks That Pay Dividends

Dividends from stocks can provide a nice income. If the stock market is low, normally bank interest rates are also low, so many people purchase stock at a discount price and receive a higher rate of return for income than they could at a bank. Financial planners include them in portfolios in all types of economic conditions to provide income.

History

Don't rely on past history of dividends. Stocks like GM paid large dividends but within a year, filed bankruptcy. The past isn't always an indicator of the future.

Pharmaceuticals

Often stocks in pharmaceuticals pay dividends. Companies like Lilly produce drugs for the increasing needs of baby boomers. Sales mean profit and profit means dividends.

Alcohol

No matter what the economic conditions, people drink alcohol. Brown Forman maker of alcoholic beverage, including Jack Daniels, increased its dividend when auto companies and others were filing bankruptcy.

Utilities

Investors normally buy utility companies for the dividends they pay. In good times or bad, people need light, heat and water. Consolidated Edison, Inc. provides dividends for its investors.

Consumer Goods

Basic consumer staples might be boring, but the dividends are good. Like alcohol, food is necessary in any economy. Coca Cola, Proctor and Gamble and Colgate all pay nice dividends in most economies.

Gentle Giants

Look for old favorites with a lot of diversification. Even though GE had holdings in the financial industry when it went down the drain, it managed to give a dividend because of the other cash cow holdings.