4 Top Dividend Funds to Invest in 2012

With the grueling stock market fall, investors are certainly looking for defensive investments. The good news is that there are many high-quality companies — such as AT&T (NYSE:T), Pfizer (NYSE:PFE) and Coca-Cola (NYSE:KO) — that are paying juicy dividends. In many cases, the yields are higher than 30-year Treasury bonds.
And yes, one effective way to invest in dividend-paying stocks is to buy a mutual. So here’s a look at some top offerings:

4 Top Dividend Funds to Invest in 2012 - Hartford Dividend & Growth A Fund

The Hartford Dividend & Growth A Fund (MUTF:IHGIX), which has $6.2 billion in assets, is primarily focused on mega-companies. Top holdings include AT&T, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), IBM (NYSE:IBM) and Wells Fargo (NYSE:WFC). What’s more, the overall yield is 1.29%.
Because of the focus on quality and stability, the fund’s portfolio manager, Edward Bousa, has been able to deal quite effectively with market volatility.

4 Top Dividend Funds to Invest in 2012 -

Franklin Rising Dividends A Fund

Founded in 1947, Franklin Resources (NYSE:BEN) has built a powerhouse in mutual funds. Then again, it has been able to post solid long-term returns for its investors.
One of the standouts is the Franklin Rising Dividends A Fund (MUTF:FRDPX), which got its start in 1987. In fact, the fund’s portfolio manager, William Lippman, still is at the helm.
Basically, the strategy is to focus on companies that have consistently increased their dividends. And yes, there must be a compelling case that the strength will continue for the long haul. In other words, the portfolio has many companies that generate large amounts of cash flows and have low debt levels.

Invesco Diversified Dividend Y Fund

Meggan Walsh, who manages the Invesco Diversified Dividend Y Fund (MUTF:LCEYX), looks for investments that have growth ramps yet are selling at discounted valuations. Actually, in light of the recent market plunge, these opportunities are certainly easier to find.
Keep in mind that dividends are not the only requirement. For example, Walsh looks for companies that also have aggressive share buyback programs. Some of the top holdings include SunTrust Banks (NYSE:STI), Kimberly-Clark (NYSE:KMB) and Johnson Controls (NYSE:JCI).
The fund also has a healthy dividend payout, coming to about 2.13%.

4 Top Dividend Funds to Invest in 2012 -

Vanguard Dividend Growth Fund

The Vanguard Dividend Growth Fund (MUTF:VDIGX) invests primarily in large companies that have strong track records of paying dividends. This certainly helps to provide downside protection.
As should be expected, the expense ratio is at a low 0.34%, which helps to boost returns. Consider that the overall dividend yield is 1.99%.
The fund also avoids aggressive trading. That is, the turnover is only 17% per year.
Tom Taulli is the author of various books, including “All About Commodities” and “All About Short Selling.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.
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Best Companies to Invest in 2012- 16 Companies Increasing Dividends This Week

It was another week of losses on Wall Street, and even the debut of Facebook (NASDAQ:FB), the biggest tech IPO ever, failed to get buyers excited. On the dividend front, we saw once-mighty retailer J.C. Penney (NYSE:JCP) move to suspend its payout as part of plan to cut costs and get the company back on track.
Yet it wasn’t all somber news for income seekers. This week we saw another batch of great companies moving to increase shareholder wealth. Here are 16 companies increasing dividends this week.
Property and casualty insurer ACE Ltd. (NYSE:ACE) moved to ensure shareholders’ wallets, increasing its quarterly payout 4.25% to 49 cents per share. The new dividend will be paid Aug. 21 to shareholders of record as of July 31. The new dividend yield, based on the May 16 closing price of $75.26 (the day the dividend was announced), is 2.60%.
H2O utility provider Best Companies to Invest in 2012 American Water Works (NYSE:AWK) turned up the spigot on its dividend by 8.7% to 25 cents per share. The new dividend is payable Sept. 3 to shareholders of record as of July 6. The new dividend yield, based on the May 11 closing price of $34.33, is 2.91%.
Specialized insurance provider Assurant (NYSE:AIZ) upped its premium to shareholders by 17% to 21 cents per share. The new dividend is payable June 12 to shareholders of record as of May 29. The new dividend yield, based on the May 11 closing price of $37.81, is 2.22%.
Chemical and specialty products maker Best Companies to Invest in 2012 Cabot (NYSE:CBT) boosted its dividend 11% to 20 cents per share. The new dividend formula will be paid in June 15 to shareholders of record as of June 1. The new dividend yield, based on the May 11 closing price of $41.87, is 1.91%.
Consumer products giant Clorox (NYSE:CLX) stocked shareholders’ shelves with a 6.7% increase in its quarterly payout to 64 cents per share. The new payout will be made on Aug. 10 to shareholders of record as of July 25. The new dividend yield, based on the May 15 closing price of $69.04, is 3.71%. The maker of multiple household brands has increased its dividend every year since 1977.
Oil refiner Best Companies to Invest in 2012 HollyFrontier (NYSE:HFC) refined its quarterly payout with 50% more fiscal octane. The new payout of 15 cents per share will be pumped out July 3 to shareholders of record as of June 12. The new dividend yield, based on the May 16 closing price of $29.57, is 2.03%. The company also declared a special dividend of 50 cents a share.
Bank-based financial services firm KeyCorp (NYSE:KEY) upped its quarterly payout 66% to 5 cents per share. The new payout will be made on June 15 to shareholders of record as of May 29. The new dividend yield, based on the May 17 closing price of $7.40, is 2.70%. The company also increased the payout on its preferred shares.
Risk, insurance and consulting firm Best Companies to Invest in 2012 Marsh & McLennan (NYSE:MMC) consulted its financials and moved to increase its quarterly dividend by about 5% to 23 cents per share. The new payout will be made on Aug. 15 to shareholders of record as of July 11. The new dividend yield, based on the May 17 closing price of $31.96, is 2.88%.
Natural gas transmission and storage firm NiSource (NYSE:NI) turned up the heat on its quarterly payout by 4.3% to 24 cents per share. The new dividend is payable Aug. 20 to shareholders of record as of the close of business July 31. The new dividend yield, based on the May 15 closing price of $25.09, is 3.83%.
Defense contractor Northrop Grumman (NYSE:NOC) increased the firepower of its quarterly dividend, boosting its payout 10% to 55 cents per share. The new dividend will be paid on June 13 to shareholders of record as of May 28. The new dividend yield, based on the May 17 closing price of $58.5, is 3.76%.
Grocery chain operator Safeway (NYSE:SWY) packed shareholders’ portfolios with a 21% higher dividend to 17.5 cents per share. The new payout will be made on July 12 to shareholders of record as of June 21. The new dividend yield, based on the May 15 closing price of $18.78, is 3.73%.
Airline operator Southwest Airlines (NYSE:LUV) showed shareholders a little “LUV” by booking a new 122% higher quarterly dividend to 1 cent per share. The increased dividend will be payable on June 20 to shareholders of record as of June 6. The new dividend yield, based on the May 16 closing price of $8.29, is 0.41%.
Iconic luxury goods seller Tiffany (NYSE:TIF) gave investors a little blue box, boosting its dividend 10% to 32 cents per share. The new payout will be made on July 10 to shareholders of record as of June 20. The new dividend yield, based on the May 17 closing price of $60.07, is 2.13%.
Railway products maker Westinghouse Air Brakes Technologies (NSYE:WAB) added to its dividend boxcar, upping its payout 66.6% to 5 cents per share. The new dividend will be payable Aug. 31 to shareholders of record as of Aug. 17. The new dividend yield, based on the May 16 closing price of $72, is 0.28%.
Energy infrastructure and pipeline operator Williams Cos. (NYSE:WMB) has raised its quarterly payout nearly 16% to 30 cents per share. The new dividend is payable June 25 to shareholders of record as of June 8. The new dividend yield, based on the May 17 closing price of $29.79, is 4.03%.
Electricity and natural gas company Best Companies to Invest in 2012 Xcel Energy (NYSE:XEL) increased the power on its quarterly payout by 3.8% to 27 cents per share. The new dividend is payable July 20 to shareholders of record as of June 21. The new dividend yield, based on the May 16 closing price of $27.45, is 3.93%.

Best Investments for 2012 - How Do you Pick 401k Mutual Funds

Mutual funds and 401k investing is the primary way that most folks experience the stock market and plan for retirement. Though I love buying and selling individual stocks, it’s clar that most people don’t have the time or the brainpower to look beyond mutual funds — to say nothing of the added risk you take on when trading a diversified mutual fund investment for an individual stock. So it’s no surprise that one of the most frequent questions I get is about picking the best mutual funds within your 401k. I’d like to tackle that topic today, but broaden the discussion to picking the best mutual funds overall – whether you have a limited menu from your employer’s 401k retirement plan or a broader IRA account with access to more options. When evaluating your 401k and mutual fund options, you should check out the following factors: Did the fund beat the S&P 500? This question matters on two fronts. First, did it beat in the last year? Secondly, did it outperform in the longer term, like across the last five or 10 years? (Surprisingly most managers DON’T … here’s the disturbing proof.) What’s the expense ratio? This is the amount of your returns that the fund shaves off. 1% sounds like a reasonable expense, but what if you only get 3% in annual returns? Well, your expenses shove that down to just 2%. Giving up 1% in returns every year adds up dramatically over a decade or two. If your fund has an expense ratio higher than .75% or 1% it better deliver impressive returns to be worth it. How long has the manager been there? If the guy moves around a lot or has only recently been put in charge of the fund, you really can’t credit him with any of its success. That would be like saying it doesn’t matter whether Steve Jobs is leading Apple Inc. (NASDAQ:AAPL) or not – it matters a great deal. That’s not to say a different manager can’t prove himself over time, but don’t be his guinea pig. Less than a year or two is a warning sign. Another good rule of thumb is the Morningstar rating. This is a firm that specializes in ranking the best and worst funds. Anything that’s a four or five star is typically a solid fund overall. This mutual fund research firm is a great resource, though obviously you shouldn’t rely too heavily on their evaluation alone. So what if you want to check these three metrics on your own? My favorite one-stop shop is Fidelity … If your mutual funds aren’t in the Fidelity family, don’t worry – it offers info for ALL funds. Well, over 1,700 funds anyway. Just type in the name of your fund under the “search” functionality at the very top of the page in the green bar, and then click on the fund you want to research to get an in-depth summary of the investment.

12 Best Companies to Invest in that Increasing Dividends

The market has seen some selling over the past couple of weeks, but that hasn’t poisoned the well for companies boosting dividends. This week, we saw another big batch of firms taking steps to boost shareholder value, including a big discount retailer, a giant railroad and one of the largest tech bellwethers in the market. 12 companies made it onto our Companies Increasing Dividendslist this week:
Membership discount retailer Costco (NASDAQ:COST) gave its shareholder membership a bonus, upping its quarter payout 14.6% to 27.5 cents per share. The new dividend is payable June 8 to shareholders of record as of May 25. The new dividend yield, based on the May 9 closing price of $82.62 (the day the dividend was announced), is 1.33%.
Railroad giant 12 Best Companies  to Invest in #1 CSX Corp. (NYSE:CSX) delivered shareholders a 17% increase in its quarterly dividend to 14 cents per share. The new payout will leave the station June 15 to shareholders of record as of May 31. The new dividend yield, based on the May 9 closing price of $21.66, is 2.59%.
Industrial device maker 12 Best Companies  to Invest in #2 Curtiss-Wright (NYSE:CW) designed a new dividend to shareholders, turning up the dial on its dividend 12.5% to 9 cents per share. The new payout will be made July 13 to shareholders of record as of June 29. The new dividend yield, based on the May 8 closing price of $33.01, is 1.09%.
Logistics company 12 Best Companies  to Invest in #3 Expeditors International of Washington (NASDAQ:EXPD) drew up a plan to boost its dividend by 12% to 28 cents per share. The new payout will be delivered June 15 to shareholders of record as of June 1. The new dividend yield, based on the May 4 closing price of $39.50, is 1.42%.
Financial data provider 12 Best Companies  to Invest in #4 FactSet Research Systems (NYSE:FDS) analyzed its books and released a 15% boost in its quarterly payout to 31 cents per share. The new dividend is payable June 19 to shareholders of record as of May 31. The new dividend yield, based on the May 9 closing price of $104.38, is 1.19%.
Chip-giant 12 Best Companies  to Invest in #4 Intel (NASDAQ:INTC) processed a new 7% larger payout to shareholders of 22.5 cents per share. The new dividend will be paid beginning in the third quarter. The new dividend yield, based on the May 7 closing price of $27.76, is 3.24%. This is Intel’s third dividend increase in the last 18 months.
Chemical maker 12 Best Companies  to Invest in #5 LyondellBasell Industries (NYSE:LYB) went into its fiscal lab and came out with a 60% increase in its quarterly dividend to 40 cents per share. The new payout will be made on June 11 to shareholders of record as of May 21. The new dividend yield, based on the May 9 closing price of $40.10, is 3.99%.
Hotel chain operator Marriott International (NYSE:MAR) booked a 30% upgrade in its quarterly dividend to 13 cents per share. Shareholders will be able to check in to the new payout on June 22 if they reserve an ownership stake by May 18. The new dividend yield, based on the May 7 closing price of $39.29, is 1.32%.
Safety products maker 12 Best Companies  to Invest in #6 Mine Safety Applications (NYSE:MSA) moved to ensure the fiscal safety of shareholders by raising its dividend 8% to 28 cents per share. The new dividend yield, based on the May 7 closing price of $42.28, is 2.65%.
Diversified consumer products maker Newell Rubbermaid (NYSE:NWL) opened up a 25% increase in its quarterly payout to 10 cents per share. The new dividend is payable June 15 to shareholders of record as of May 31. The new dividend yield, based on the May 10 closing price of $18.43, is 2.17%.
Nevada power generation company 12 Best Companies  to Invest in #7 NV Energy (NYSE:NVE) upped the volage on its quarterly payout by 31% to 17 cents per share. The new dividend is payable June 20 to shareholders of record as of June 5. The new dividend yield, based on the May 9 closing price of $17.03, is 3.99%.
Death care products firm 12 Best Companies  to Invest in #8 Service Corp. (NYSE:SCI) decorated shareholders’ plots with a 20% increase in its quarterly payout to 6 cents per share. The new payout will be paid July 31 to shareholders of record as of July 13. The new dividend yield, based on the May 9 closing price of $11.71, is 2.05%.

4 Best Companies to Invest in 2012

Size isn’t everything, but it sure is fun.”
The phrase might sound like a glib remark from a late-night Showtime movie, but it’s also an apt way of summing up some of the ludicrous numbers that get thrown around on Wall Street.
The most recent example: On Tuesday, 4 Best Companies to Invest in 2012 Apple (NASDAQ:AAPL) briefly reached a brain-tickling market capitalization — a measure of public opinion of a company’s worth calculated by multiplying outstanding shares times share price — of $600 billion.
Needless to say, that means Apple is worth a lot of money. In fact, by market cap, it’s the most valuable company in the world. And when you’re the world’s most valuable company, laughable comparisons come along with the territory. For instance, Barron’s Brendan Conway points out that Apple is bigger than the entire S&P SmallCap 600. David Gilbert at International Business Times notes that Apple is bigger than, among other things, the National Football League and Poland’s GDP.
Of course, another way to examine Apple’s giant bucket of commas and zeroes — as well as those for other blue-chip titans — is alongside its own Wall Street counterparts. And that’s when you start to get a concept of how truly enormous these valuations are.
For instance …
Apple is worth more than the major U.S. carriers that have helped shill and provide phone and data service for the company’s hit iPhone and iPad.
4 Best Companies to Invest in 2012 AT&T (NYSE:T), 4 Best Companies to Invest in 2012 Verizon (NYSE:VZ) and Sprint (NYSE:S), which are responsible for more than 250 million wireless subscribers in the U.S., combine for a total market cap of about $290 billion, or roughly half Apple’s worth. More astoundingly, Apple’s market cap is three times that of AT&T, about six times greater than Verizon and a whopping 73 times greater than Sprint.
Even when you toss in China’s iPhone-licensed carriers — China Unicom (NYSE:CHU, $39.6B) and China Telecom (NYSE:CHA, $43.2B) — you still come up a couple hundred billion dollars short. In fact, the roughly $226 billion difference would be more than enough to buy America’s largest bank by assets, JPMorgan (NYSE:JPM, $164.9B), and a little-known coffee outfit called 4 Best Companies to Invest in 2012 Starbucks (NASDAQ:SBUX, $42.9B).
Of course, Apple isn’t the only company with a mind-bending market cap.
Integrated oil giant Exxon Mobil (NYSE:XOM) is the country’s No. 2 company by market cap at about $390 billion and now the world’s No. 2 oil producer after being nudged from the top spot by PetroChina (NYSE:PTR). Gargantuan, thy name is Exxon.
In fact, Exxon’s business is so sizable that it tops the combined market cap (roughly $300 billion) of the 45 oil equipment and services companies in the Dow Jones U.S. Oil Equipment & Services Index Fund (NYSE:IEZ), which includes standard-bearers like Schlumberger (NYSE:SLB, $89.5B), National-Oilwell Varco (NYSE:NOV, $32.5B), 4 Best Companies to Invest in 2012 Halliburton (NYSE:HAL, $29.5B) and 4 Best Companies to Invest in 2012 Baker Hughes (NYSE:BHI, $17.3B).
Priceline.com (NASDAQ:PCLN) is an online travel company that deals in all sorts of reservations, from hotels and airline tickets to car rentals and cruises — and numerous packages in between. And at $38 billion, PCLN’s market cap might not come close to Apple or Exxon, but it’s still pretty clear that Priceline is big business.
How big? Well, for one, it’s far greater than the combined market caps of the four major U.S. airline carriers.
Delta Air Lines (NYSE:DAL), $8.7 billion
United Continental (NYSE:UAL), $7 billion
Southwest (NYSE:LUV), $6.35 billion
4 Best Companies to Invest in 2012 US Airways (NYSE:LCC), $1.25 billion
Total: $23.3 billion
In other words, these carriers total about $15 billion less than PCLN — an even more impressive thought considering that Priceline’s large sum revolves around all of 3,400 employees, versus almost a quarter-million across DAL, UAL, LUV and LCC. And even if you threw in 4 Best Companies to Invest in 2012 Alaska Airlines (NYSE:ALK, $2.5B), pre-bankruptcy AMR (PINK:AAMRQ, est. $1.5B) and JetBlue (NASDAQ:JBLU, $1.35B), Priceline still would be worth more by market cap.
Lastly, there’s Coca-Cola (NYSE:KO). Coca-Cola is the world’s top beverage company and offers more than 500 ways to quench your thirst. And at $164 billion, its market cap is greater than most of the brands that peddle its wares. That includes supermarkets 4 Best Companies to Invest in 2012 Whole Foods (NASDAQ:WFM, $15B), Kroger (NYSE:KR, $13.6B), Safeway (NYSE:SWY, $5.9B), The Fresh Market (NASDAQ:TFM, $2.3B) and Harris Teeter (NASDAQ:HTSI, $1.8B) …
… and dollar-store outfits 4 Best Companies to Invest in 2012 Dollar General (NYSE:DG, $15.5B), Dollar Tree (NASDAQ:DLTR, $11B) and Family Dollar (NYSE:FDO, $7.4B)…
… and even super-retailers 4 Best Companies to Invest in 2012 Costco (NASDAQ:COST, $37.6B) and Target (NYSE:TGT, $38B).
In fact, about the only retailer dealing in food that you can’t lump in is Wal-Mart (NYSE:WMT), which at a market cap of $205 billion also dwarfs the field, as well as Coke.