Four dividend diamonds for dependable returns

With a consistent bond-like flow of income, these stocks present attractive options.

Vikram Barhat 21 December, 2016 | 6:00PM

As yet another volatile year draws to a close, investors are looking to rebalance their portfolios for a new year and the challenges and opportunities it may bring. For those looking for stability and predictability of income, this may be a good time to scour for quality dividend payers with steady cash flow and some potential for price appreciation.

With a consistent bond-like flow of income, these stocks present attractive options to consider when capital allocations are rejigged. The returns of dividend-paying stocks tend to be less volatile and more predictable, says Morningstar's Karen Wallace.

"When more of the total return comes from dividend payments, investors don't need to rely as much on price appreciation to get a reasonable return," Wallace wrote in a recent article published on Morningstar.com. Although, a dram of capital growth along the way won't hurt either.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Compass Minerals International Inc61.55 USD-2.05
Daimler AG43.10 USD-6.47
GlaxoSmithKline PLC ADR41.92 USD-2.69
Procter & Gamble Co123.30 USD-2.68

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.