A whopping 372 stocks on the S&P 500 index pay dividends,
but that still leaves 128 that don't. Here are our Top 10 stocks
be paying a dividend to their shareholders.
The benefits to paying dividends are numerous. High dividend
payouts attract a solid base of long-term investors in a company,
which helps put a cap on share volatility. Both retail investors
and fund managers love dividends for their income and compounding
returns, so without further ado, here are 10 big-name stocks that
should start paying a dividend.
1. Google Inc.
This tech behemoth is sitting on an estimated $30 billion in cash.
That's about $94 per share - absolutely none of which will be paid
out to shareholders this year. Reward your investors and share the
2. Apple Inc.
Apple is another tech darling sitting on a boatload of cash -
around $24 billion, to be exact. With its stellar product pipeline
and long history of innovation in the tech space, this company
could well afford to initiate a dividend payout.
3. Amazon.com, Inc.
Amazon doesn't have as large a cash position (around $5.1 billion)
as Google or Apple, but it would still do well to initiate a
dividend. This stock was a high-flier for many years before it ever
even turned a profit, but the future has always looked bright for
the online retail juggernaut.
4. eBay Inc.
For a stock that's been essentially "dead money" for years (now
), eBay has done remarkably little to inspire investors to invest
in its future. A healthy dividend payout would go a long way to
attracting long-term shareholders, and could help this company rise
from the doldrums its been stuck in for several years.
5. Yahoo! Inc
Essentially the only catalyst for growth in this tech giant for the
past several years has been persistent rumors of a takeover by
) . Reportedly, Microsoft had a $30 per-share offer on the table
for Yahoo back in February 2008, which the company inexplicably
declined in one of the all-time management bungles in business
history. Yahoo shares now trade under the $14 level, and catalysts
for share price growth are looking slim.
6. Dell Inc.
Dell is another "dead money" tech stock that has thus far refused
to join the ranks of the dividend payers. The world's largest PC
maker is hoarding around $11 billion in cash in its coffers - more
than enough to fund a substantial dividend payout.
7. Kohl's Corporation
You didn't think our list will be only comprised of tech stocks,
did you? As a department store operator, Kohl's is a prime
candidate for initiating a dividend payout. Its main rival, Target
) , sports a decent 2% annual dividend yield, so why doesn't Kohl's
step up to the plate, too?
8. Berkshire Hathaway
Berkshire's world famous billionaire owner Warren Buffett is
notorious for his preference of good dividend-paying stocks over
non-dividend-payers. Why, then, doesn't he initiate a dividend
payout for his own company? With an unbelievably-high estimate of
in cash sitting on the books (no, that's not a typo), there's
simply no excuse for Mr. Buffett to not reward his loyal
shareholders with regular dividends.
9. Amgen, Inc.
Amgen, which develops drug treatments for several serious
illnesses, has a whopping estimated $15 billion in cash, but unlike
its rivals Johnson & Johnson (
) , Merck (
) , and Eli Lilly (
) , it still refuses to pay a dividend. While it's true that many
biotech names don't pay dividends, Amgen is one of the most mature
names in the space.
10. WellPoint Inc.
Last but certainly not least, we've got health benefits giant
WellPoint. With more than $18 billion in cash, this company could
well-afford a substantial dividend payout. Similar to the biotech
sector, health benefits providers have been slow to join the
dividend party, but the time is right to start payout out now.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here