Investors don’t think about dividends as very important for the short term, “but over a decade typically they represent 40-50 percent of the total returns,” Greg Thomas, chairman and CEO of the advisory firm Thomas Partners, which has $ 1 billion assets under management, told CNBC Friday.
Thomas recommended two stocks that, in general, have good yields, an opportunity dividend growth and can be bought at a discount to Thomas Partners’ measure of the company’s intrinsic value.
Genuine Parts Company
[GPC Loading… () ] “is a very stable business distributor of automotive after-market and industrial products,” Thomas said. GPC has had 55 consecutive years of increasing its dividend, he said.
The “last dividend increase was about 9.7 percent, current yield about 3.3 percent,” he added.
[WM Loading… () ] dividend yield is 4.4 percent, with eight consecutive years of dividend growth, said Thomas. “They’ve increased it each year for about eight years.”
“They’re very embedded in green industries, they provide biofuels [and] very, very good growth opportunities,” he said of the company.
If investors think out 10 years from now as to which portfolios have done well, he said, “those that have captured at least as much dividend income as the market offers have a far lower capital gains hurdle on their own asset structures.”
Watch CNBC’s “The Strategy Session” weekdays at Noon ET.
© 2011 CNBC.com
From our Blog
- Why You Need a Dumpster September 21, 2016
- Neighborhood Togetherness Matters & Clean Up Does, Too September 19, 2016
- What Waste Should You Recycle And Throw In The Trash? August 3, 2016
- Dumpster Rentals for Business Owners August 1, 2016
- Picking a Dumpster for Your Next Roofing Project July 19, 2016
- Consequences of Illegal Dumping and Littering July 13, 2016
- How To Dispose Of Debris? June 14, 2016
- When Is A Good Time To Clean Out Your Waste? June 13, 2016
- How to Dispose of Construction Waste May 2, 2016
- Why You Should Share Rental Dumpsters With Your Neighbors April 29, 2016
2011 2012 Announces best Call Clean Company Conference Connections Covanta diving dumpster dumpsters Energy Ewaste Garb garbage Harbors Holding Identity Inc. Industry Landfill Management Plant power Present Progressive Recycling Release Rental Reports Republic Second Services Solutions Stericycle stock Third TRASH TriTech Veolia Waste yard Year
- Dumpster Diving for Gourmet Pig Feed – Novella Carpenter July 10, 2011
- A Shout Out To Eating Garbage: Dumpster Diving on CBC September 17, 2011
- MythBusters – Dumpster Diving Trailer July 16, 2011
- Kris Kemp: Dumpster Diver August 21, 2011
- What should happen after my character gets beat up? June 6, 2011
- Frugal TV – Dumpster Diving for Coupons June 11, 2011
- Dumpster Dive (Director Commentary) September 24, 2011
- Dumpster Divers Spark Palin Probe September 11, 2011
- Can Opener? We don’t need no stinking can opener! June 19, 2011
- Auburn-Placer 1 yard dumpster June 8, 2011