Friday, April 8, 2011

Investopedia: Stocks With Dividends And Growth

Sometimes growth stocks and income-producing stocks are arrayed against each other as some sort of "bubblegum vs. potato chips" argument. In reality, though, investors can usually find a pretty healthy menu of choices among companies that not only return a meaningful dividend to shareholders, but also have growth prospects strong enough to drive future capital appreciation. Although an investor should always hold a diversified portfolio to minimize company-specific risks, a selection of these stocks could offer a bit of the best of both worlds. 


Healthcare 
Abbott Labs (NYSE:ABT) is a frequent-flier in articles about quality companies, dividend-paying companies, quality dividend-paying companies, consistent dividend-payers, and so on. Well, there's a good reason for that - Abbott is a legit star when it comes to sharing its success with its owners. On top of that, Abbott has an uncanny knack for finding breakaway winners just when analysts sour on the company's future growth prospects (first Humira, then drug-coated stents). Abbott does have some near-threats to its growth, but it would seem unwise to assume the worst for this proven healthcare giant. (For more, see Healthy Dividend-Growth Ideas In Healthcare.)

Finance
Given that it has been around so long, it may be hard to think of M&T Bank (NYSE:MTB) as a "growth" candidate. That said, the company still operates in only a relatively small geographic part of the company and there is certainly room to grow by acquisition and/or superior execution. This is a well-run bank that offers a solid dividend and above-average long-term growth prospects. 




Please continue via the link below:
http://stocks.investopedia.com/stock-analysis/2011/Stocks-With-Dividends-And-Growth-ABT-PEP-DRI-MTB-WDR-UPS-TSM0408.aspx

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