Dividend stocks are highlighted as a reliable income source for investors, particularly retirees. From 1986 to 2016, companies that paid dividends yielded an average return of 9.9%, outperforming the market average of 6.6%, according to Royal Bank of Canada’s Global Asset Management division. Notable dividend-paying companies include Morgan Stanley (NYSE: MS), U.S. Bancorp (NYSE: USB), and Cincinnati Financial (NASDAQ: CINF).
Morgan Stanley has diversified its revenue streams through acquisitions, including E*TRADE and Eaton Vance, for approximately $20 billion. As a result, the firm recently doubled its dividend payout to a yield of 2.1%. U.S. Bancorp, recognized for its risk management, offers a dividend yield of 3.1% and has averaged an ROE of 15.2% over the past decade. Cincinnati Financial, a well-established insurance provider, boasts a track record of increasing dividends for 61 consecutive years, currently yielding 2.1%.
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