Why dividends are awesome

The chart above speaks volumes.

A summary of the best long term dividend payers is here.

My favourite by far is LYG Lloyds TSB group-- a UK based very large, very conservative bank that has be beaten down along with its foolish peers undeservedly during the "credit crunch". It's write downs are relatively minimal, its cost controls are excellent and its fundamentals are compelling. With a 10% yield, tax treaty with Canada to help protect those dividends and an excellent chance of the share price returning to FMV when the crunch eventually ends (it will, you know) the opportunity for capital gains along with very good dividend income/tax benefits makes this stock very interesting. I think that the downside is 10% and the upside is 50%+. Morningstar thinks along my lines with a recently stated FMV of $49/share and a "wide" moat designation (size, scope and high customer switching costs).

Do your own research. I think that this is another example of a beautiful and extremely boring investment. The two adjectives seem to run together.

I suspect that the summer and early fall will harbour a few nasty surprises for the markets worldwide. I am planning to have a bit more cash on the sideline to take advantage of new bargain basement type deals. I'm also cutting a loose a few of my more marginal and speculative equities like Georgia Gulf and possibly BPOP. I think that now, more than ever, it is time to be particularly picky-- particularly about balance sheet issues and debt/capitalization.

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