"I am a beginner in investments. Can you suggest some Dividend Aristocrats or long-term income giving investments? Thank you for your attention and for helping me."

Eoin Treacy's view Thank you for this question which others may also find of interest. Yield compression has been a major cause of concern for potential income investors. Quantitative easing has sent Treasury yields to record lows, many companies cancelled dividends following the Great Recession and many of those that didn't have experienced significant capital appreciation. As a result, the range of potential income investments shrank considerably over the last two years.

At Fullermoney we have focused on two main avenues of income investment. The first are dividend aristocrats. These are companies that have sustained reliable, although often modest, dividends over a long number of years. They have solid credentials in maintaining a reliable income stream and we favour those that dominate their respective niche and offer leverage to the global economy. Here is a list of US dividend aristocrats that appeared in Comment of the Day on September 14th.


The second group are Canadian income trusts or US Master Limited Partnerships (MLPs). These are typically companies that have solid earnings which they pay out in regular dividends. MLPs also benefit from favourable US tax treatment. A large number of such trusts and partnerships are focused on the energy sector, often through either production or transportation. These offer some of the better potential for capital appreciation because of their leverage to the commodity supercycle. Here is a link to Comment of the Day on December 6th where some MLPs are reviewed.