Shailesh Kumar | Jul 11, 2013 03:11AM ET
In this period of low interest rates, investors have been chasing yield. Dividend stocks therefore have been in great demand. The best dividend stocks not only offer a great yield, the companies also have a history of responsibly managing the dividend payout and rewarding the shareholders with a consistently increasing dividend. The following 7 dividend paying stocks offer great yields, some of the best dividend growth rates in their respective industries, as well as reasonably low payout ratio indicating dividend increases in the future are likely. Here they are in no particular order.
1. Validus Holdings Ltd (VR)
You want your reinsurer to understand and manage risk prudently and at the same time reward the shareholders. Validus Holdings is a Bermuda based reinsurer offering products and services in property, marine and specialty lines markets worldwide. Started in 2005, initial backers included private equity firms of Acquiline Capital Partners, Goldman Sachs Capital Partners, Vestar Capital Partners, New Mountain Capital and Merrill Lynch Global Private Equity. The company has consistently raised its dividend since its IPO in 2007 and currently offers an yield of 3.45%. Capital appreciation has been reasonable, if not spectacular. The current fear of potential clients shunning traditional reinsurance in favor of catastrophe bonds has pressured the stock to attractive levels and could be a great opportunity to take a meaningful position.
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