Dividend Paying Stocks can be good in long-run

To find these stocks, I used Capital IQ, an institutional investment-analysis software package, to screen for stocks yielding more than 3%, with market caps greater than $1 billion (to provide stability), and with payouts less than 80% of free cash flow (more cushion means a company's better able to pay its dividend consistently). Strong operational returns are a must -- they provide a cushion against rough times, as well as fuel for the good times -- so I set a return on equity (ROE) floor of 10%.



http://www.fool.com/investing/dividends-income/2007/08/30/make-millions-with-7-stocks.aspx?source=iflfollnk0000003