One argument against investing in mega-cap dividend stocks is that elephants don’t gallop, and it’s true; they don’t.
However, as a dividend-focused investor I’m not necessarily looking for companies that can grow at ten or twenty percent each year.
What’s important to me is a market-beating combination of income today and potential growth tomorrow, from companies that are less risky than average. And many mega-cap stocks, including some of the biggest dividend payers in the market, fit that description nicely.
That’s why in this month’s Master Investor magazine I’ve taken a look at the three biggest companies on my stock screen.
In other words, the three highest market cap companies from the FTSE 100 that paid dividends in every one of the last ten years.
The three companies (Shell, HSBC and BAT) are all very different, so which one will be the heavyweight dividend champion?
Who is the heavyweight dividend champ: Shell, HSBC or BAT?