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10 Stocks That Should Pay a Dividend, but Don’t (GOOG, AAPL, BRK.A, AMZN, more)

By: Dividend.com
Posted: 8/18/2010 12:15:00 PM
Referenced Stocks: AAPL;AMGN;AMZN;DELL;EBAY;GOOG;JNJ;KSS;LLY;MRK;MSFT;TGT;WLP;YHOO

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 that should 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. ( GOOG )
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 wealth, Google!

2. Apple Inc. ( AAPL )
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. ( AMZN )
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. ( EBAY )
For a stock that's been essentially "dead money" for years (now trading at 2002 levels ), 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 ( YHOO )
Essentially the only catalyst for growth in this tech giant for the past several years has been persistent rumors of a takeover by Microsoft ( MSFT ) . 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 )
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 ( KSS )
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 ( TGT ) , sports a decent 2% annual dividend yield, so why doesn't Kohl's step up to the plate, too?

8. Berkshire Hathaway ( BRK-A )
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 $16,000 per share 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. ( AMGN )
Amgen, which develops drug treatments for several serious illnesses, has a whopping estimated $15 billion in cash, but unlike its rivals Johnson & Johnson ( JNJ ) , Merck ( MRK ) , and Eli Lilly ( LLY ) , 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. ( WLP )
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 .