High-Yield Income Investing With Dividend Contenders

 | Nov 09, 2012 01:50PM ET

Most of us have the dream to save a little money over the years and invest it in fundamentally attractive stocks with great dividends in order to build up a secondary income source. Starting at a low passive income, the dividends grow, your savings increases the amount of stock capital and your dividend income grow steadily. If you made the right investments, you should expect at least an income from your investing activities which is high enough to pay all of your daily needs and some extra items. All is only a question of the amount of regular savings and the return and growth of your dividend stocks. The fundamental basis is that you find growth stocks that share their business success with you. An investment class that covers the best dividend growth stocks is the Dividend Champions category. The prices of those high-quality growth stocks are very high, so we should take look at the second group of following stocks, the Dividend Contenders group (stocks with consecutive dividend growth of more than 10 years but less than 25 years).

I made a screen of the best yielding Dividend Contenders, starting at a yield of more than five%. Fifteen companies remained, of which five are currently recommended to buy.

Kinder Morgan Energy Partners (high yield Dividend Contenders . The average P/E ratio amounts to 19.04 and forward P/E ratio is 26.30. The dividend yield has a value of 6.86 percent. Price to book ratio is 2.75 and price to sales ratio 3.89. The operating margin amounts to 26.95 percent. The average stock has a debt to equity ratio of 1.04.

Here's The Full Table With Fundamentals (TTM)