RobMarketsBlind's Blog : Our 2012 stock dividend predictions - extremely high accuracy probablility

We here at RTMB (Robbing the Markets Blind)  like making trades where the odds are extremely favorable to us.

One thing about others making 2012 predictions. They’re usually wrong. However, the stocks we provide below have an extremely high probability-risk ratio of making our predictions correct. We are saying that all 11 stocks will increase their dividends in 2012. Our almost certain to be correct prediction have these high quality stocks to have dividend increases in 2012. That actually making two predications. One is these stocks will pay a dividend and that dividend will increase from the dividend paid this year.

1. ATT (T)

First, it pays a current yield of 5.8%. Second, it has increased it’s dividend for 28 straight years. Another increase in 2012 and your yield-on-cost is going to be greater than 5.8%. Third, T is one of the few high paying dividend stocks that’s not considered overvalued. For investors looking for yield, AT&T is an excellent stock choice.

2. McDonalds (MCD)

Most people don’t realize that the kingpen global fast food company has paid 35 years of dividends with increases in each of those years. It’s five years dividend growth rate is 32.11%. It’s payout ratio is an excellent low 33%.

3. Coke (KO)

Coke's stellar history shows paying a dividend every quarter for the past few decades, and also that Coke management has a record of raising the company's dividend by about 8% annually over the past decade. Coke generated billions of dollars in profits last year, is on pace to increase that amount by 6.5%-10% this year, and likely that Coke will pass some of those additional profits on to investors in the form of a higher dividend. the fact that only half of its earnings get paid out as dividends ensures that Coke could afford to raise its dividend by increasing its payout ratio for a few years in the event of a two to three year stretch of earnings stagnation

4. Wal-Mart (WMT)

The most recent dividend increase was in March 2011, when the Board of Directors approved a 20.70% increase to 36.50 cents/share. WMT has increased it’s dividend each year for 36 straight years. It’s 5 year dividend growth rate is 17.14%. It’s payout ratio is a great low 32%. It is not far-fetched to see the dividend payment doubling every four years. If we look at historical data, going as far back as 1976, we see that Wal-Mart has actually managed to double its dividend every three years on average.

5. Realty Income Group (O)

The stock is approaching it’s 52 week high. O calls itself ‘The Monthly Dividend’ company. It’s current yield is 4.9%. It has increased it dividend payment for 57 consecutive quarters (14 years) .

6. Kinder Morgan (KMP)

The stock is at a 5 year high. Kinder Morgan had outperformed the market by a wide margin over the last 1, 3, 5 and 10 years. The stock is currently yielding 5.5%. The stock was only down 9.2% in 2008 while the S&P 500 was down 38.5%.

7. CHEVRON (CVX)

20 years of consecutive dividend increases. 5 year dividend growth rate at 9.04%. Dividends paid since 1912. Payout ratio is a tiny 22% (the lower the payout ratio the more cash the company has to pay dividends)

8. Proctor & Gamble (PG)

The quintessional consumer staple stock. Over 50 consecutive years of dividend growth. Expect another increase first quarter 2012.

9. Altria (MO) and Phillip Morris (PM)

The twin stocks. One sells in the USA, the other international. PM wholly owned by Altria. Before the split, the mother company has paid 45 consecutive of dividend increases. Expect increases in dividends from both companies in 2012.

10. General Mills (GIS)

GIS has paid a dividend for 111 straight years and has increased dividends the last 7. GIS has a 5-yr dividend growth rate of 10.87%. Payout ratio is 44%.

All these 11 stocks will increase their dividends in 2012.