SENSIBLESTOCKS .COM
Dedicated to the success of the individual investor
Dear Fellow Stock Investor,

Would you like to have your own "
perpetual cash machine" of increasing dividends?  
THE TOP 40 DIVIDEND STOCKS FOR 2010 presents an exclusive list and
exhaustive analysis of the 40 highest-rated dividend stocks for 2010, as well as a
complete guide on how to build and maintain a dividend stock portfolio.

THE TOP 40 DIVIDEND STOCKS FOR 2010 is the best step-by-step guide for
dividend investing. It presents a straightforward, sensible methodology for picking great
dividend stocks and managing your portfolio.
The “Top 40” are the best dividend
stocks available right now.
You can start building your portfolio immediately, or re-tool
a portfolio you already have.

Dividends are stocks’ secret weapon. Whether your goal is very long-term--such as
to build a retirement nest egg--or immediate--to produce a current income stream in
retirement--dividend stocks can help you reach your goal.  
Because dividend stocks
serve either goal so well, they may be the best investment anyone can own.

Have you noticed that this is a calm message? If you are like me, you are tired of
investment pundits who take a raving, hype-filled approach. This message is meant to
be sensible and informative, for adults who are serious stock investors.

**********
Keep reading to find out…

1. Why Dividend Stocks are Good for Long-Term Wealth Building
2. Why Dividend Stocks are Good for Immediate Income
3. Whether Dividend Stocks Are Safe
4. What Are The 40 Best Dividend Stocks for 2010?
5. Why Is the Step-by-Step Guide Important?
6. Features, Benefits, and Distinctions from Competitors
7. How to Purchase

**********

1. Why Dividend Stocks are Good for Long-Term Wealth Building

From a long-term perspective, the most profitable stocks are dividend stocks.

The stocks with the
best total returns are not the headline-grabbing high-growth, high-
priced, “latest great thing” issues. They are not technology stocks.
The champions in
the best-total-returns game are dividend-paying stocks.

Look at this fascinating graph from Ned Davis Research:





















Notice two things:

First,
the total return from dividend-paying stocks far exceeds the return from
non-dividend-paying stocks,
with the gap widening steadily over time.

Second, even during the high-flying bull market of 1982-2000, when so much total return
came from price increases,
dividend stocks outperformed non-dividend stocks
handily.

Studies show that dividends have accounted for nearly half—or more—of the total return
of the stock market over very long terms. That may surprise you, considering how little
publicity dividends get. There is no widely reported dividend index that gets the attention
bestowed every day on the Dow, the S&P 500, and the NASDAQ.

But all of those indexes reflect price changes only. Thus, they give a very incomplete
picture of "how stocks are doing." No wonder dividends pass under so many investors'
radar.
The fact is, hundreds of billions of dollars are distributed every year by
dividend-paying companies.
In 2009, an historically weak year for dividends, nearly
$200 Billion was distributed by S&P 500 companies alone. In 2010, all estimates are
that the total distribution of dividends will increase.

Common misperceptions are that dividend stocks are--

--slow-growing and boring;
--an indication that a company cannot think of anything better to do with the money; and
--good only for retirees needing income.

These notions are all incorrect. Dividend-paying stocks are attractive as a core
investment for anybody, of any age.

Are you in the “wealth accumulation” stage of your life? That would be basically
everybody short of retirement. Beyond your immediate financial needs—day-to-day
pocket money, groceries, gasoline, mortgage and car payments, and raising your kids—
your predominant investment goal is to accumulate enough to retire.















As shown in the bar graph above, dividend stocks offer the best total return. Remember,
total return is the real target, not merely price appreciation.
Total return = price
appreciation + dividends. The key to long-term growth is to re-invest those dividends.
See the difference in the following illustration, also from Ned Davis Research:

















What causes the big difference between the two bars in the chart?
Re-investing
dividends brings the miracle of compounding into play.
You create a virtuous
circle: Re-invest dividends >> More shares owned >> More dividends to re-invest >> etc.

And it gets even better if the dividends themselves are increasing.  As I will explain later,
the only dividend stocks to buy are those with consistently rising dividends.

**********

2. Why Dividend Stocks Are Good for Immediate Income

Maybe you are already retired. The benefit of dividend stocks is  pretty obvious: It is
income.
You do not have to sell the stock to get the dividend. It is simply sent to
you or credited to your account. You can withdraw it without touching your principal.

You can do anything you like with your dividends. Those dollars are not "trapped" inside
the stock's share price. The dividends are distributed directly to you.

If you are a retiree, you can spend the dollars as
month-to-month income.  This is
where you reap the benefits of your intelligent wealth-building during the accumulation
years.

My surveys show that many retirees want to have both income and a growing nest egg.
Dividends make this possible. You can re-invest some and spend the rest. And, of
course, because dividend stocks are stocks, chances are good that they will generate
price appreciation over time, even without re-investing the dividends. I know that in the
bear market of 2007-2009, many stocks got devastated. The best dividend stocks held
up better than most. Since the bull rally began in March, 2009, dividend stocks have
generally risen right along with the market.

Here’s probably the best benefit of dividend stocks as an income source. Unlike your
pension, fixed annuity, CD, or bond,
your dividend income will grow each year.  
That’s because the best dividend stocks are the ones that raise their dividends
regularly. Those are the only kind to buy and the only ones that appear in the Top 40 list.  
No bond increases its payout each year, and neither does your CD or  fixed annuity.

When you retire, you want to have plenty to live on, and you also want to keep
your nest egg safe.
These two goals--income and safety--become paramount.
Financial planners call this stage "harvesting." If you are retired, you must figure that
you may be in this stage 30 years or more—as long or longer than you were in the
workforce. Besides looking after your own needs and not outliving your money, you may  
wish to help your kids buy their first house, be generous with your grandchildren, or
perhaps leave a legacy. That's why income and safety become so important:
Income to
live on, safety to keep the golden goose alive.

**********

3. Are Dividend Stocks Safe?

Relative safety is the third benefit of dividend stocks. The champions of the safety
game are dividend-paying stocks.

There are three aspects to investment risk: (1) actual loss of accumulated wealth; (2)
risk to the
dividends; and (3) loss of purchasing power—inflation.

Well-selected dividend stocks are low-risk on all three scales.

First, risk of actual loss. Remember what we saw in the graph earlier: Dividend-
paying companies held up much better than non-dividend-payers during hard times in
the stock market. During the fierce bear market of 2007-2009, they held up better. This
is not surprising. The best dividend-paying companies are usually mature, solid, well
established, and reliable.
Many are wondrous cash machines, in perpetually
successful businesses.
They pull in enough money every year to pay a healthy
dividend and still have enough left to grow the business too.
They suffer less during
bear markets.
In fact, many strengthen their competitive positions during recessions as
their less solid competitors get destroyed.

Of course, all stocks are vulnerable to market risk. Historically, dividend-paying stocks
have been less vulnerable than others. In addition, Sensible Dividend Investors (as I call
them) become less concerned with the market value of their securities, because they
have purchased the right, as part owners of the companies whose stocks they buy, to
receive the dividend payouts.
Their focus is on the dividend. The fact that the price of
those securities keeps fluctuating becomes less important, so long as the dividends
keep coming.

Second, risk to the dividend. The best dividend companies cut their dividends
seldom and raise them often. Their dividend practices tend to persist, being tantamount
to company policy.
They will go to great lengths not to deviate from the dividend
pattern they have established.
They know that their shareholders expect it. Stocks
with a history of increasing their dividends and the financial wherewithal to keep doing it
are the only kind you will find on the Top 40 list.

And finally, risk to purchasing power. This is the hidden risk, the thief that robs us
all: inflation.
You don’t get a monthly bill in your mailbox for inflation. But it is hidden in
the background, driving up your cost of living. And this is where dividend stocks really
shine.

Well-chosen dividend stocks can be as safe as bonds. In fact, over long time periods,
they are safer, because they keep ahead of inflation via dividend growth. There’s a
reason that bonds are called “fixed income” investments—their yield never rises and
neither does their face value.

Do you think the prices of gas or groceries are fixed? Of course not. That's why bonds
can't keep pace. But dividend-paying stocks
do keep up with inflation. The dividends
from well-chosen dividend stocks
grow faster than inflation. Five percent, eight
percent, or 10 percent annual growth in dividends is not at all unusual.
The median
stock on 2009's Top 40 list increased its dividend 5.5 percent
--and again, this was
in a comparatively weak year for dividends.

**********

4. What Are The 40 Best Dividend Stocks for 2010?

Let me give you a few insights into the Top 40 Dividend Stocks themselves.

  • All companies on the list--with just one exception--have increased their dividend in
    each of the past 5 years. Thirteen of the companies raised their dividend more
    than 10 percent in 2009.
  • Twenty-four of  the companies have raised their dividend for 15 or more years
    consecutively. Several of them have raised their dividends continually for decades.
  • The average current dividend of the 40 companies is 4.6 percent. That compares
    with a current yield of 2.0 percent for the S&P 500's stocks.
  • Thirteen of the companies have current yields of 5 percent or more, with the
    highest clocking in at 9.8 percent.

The list contains stocks from
10 different economic sectors, and six of the stocks
are from foreign countries
. Most of the companies derive a significant portion of their
revenue overseas, reflecting our modern global economy.

The Top 40 were selected by first running an initial universe of about 700 stocks through
several threshold screens to get the candidates down to a manageable number. Then, I
used my
Easy-Rate™ scoring system to identify the best dividend stocks. The
system looks first at the
company's quality, with a focus on its dividend record and
financial strength. Total points under this system
make it easy to see if a company is
an excellent one or an also-ran
.

After identifying the best companies, the system scores the
stock’s valuation, looking
for the best bargains.
The entire system is methodical, understandable, and
emotionless.

The best-scoring stocks made the Top 40. They are presented in four tables so you
can find them easily
: (1) alphabetically, (2) by company quality score, (3) by total
score, and (4) by current dividend yield.

In order to achieve the growth and income benefits described earlier, you need
to buy stocks with good dividend growth rates.
The Easy-Rate system puts great
emphasis on growth, so a natural result is that the Top 40 list is dominated by stocks
with a history of consistent annual
dividend increases. It is those growing dividends
that allow you to accelerate total nest-egg growth (if you are re-investing dividends) or
receive a growing yearly income (if you are harvesting).

My multi-faceted approach always leads to the
elimination of many of the highest-
yielding stocks--with yields of 15-20 percent or more.
The problem with most of the
highest-yielding stocks is that their yields are not sustainable.
They are based on
things like current unique economic cycles, bubbles in energy prices, extreme price
drops in the stocks themselves, and other impermanent conditions. You’d have to trade
in and out of such stocks to make them work. That goes against one of the goals of
Sensible Dividend Investing, which is that
stock turnover should be relatively
infrequent
.

Here is a small sample of the companies that made the grade to land in The Top 40:

  • One REIT (Real Estate Investment Trust) calls itself "The Monthly Dividend
    Company." It has increased its dividend for 47 consecutive quarters--almost 12
    straight years.
  • Two well-known names in the healthcare sector supply products you use every day.
  • Several consumer-products companies supply products and brands that are
    probably throughout your home right now.
  • One famous company may have served you a hamburger or fries within the past
    week.
  • Returning from 2008 and 2009: You drink their soda every day. Oh, you drink the
    other soda? That one’s on the list too. Both are great companies that have been
    increasing their dividends for decades.

The book includes completed Easy-Rate Scoresheets for each of the 40 winners, one
page per stock.
This list of the best dividend stocks is available nowhere else.

**********

5. Why Is the Step-by-Step Guide Important?

The text included with the Top 40 list includes a complete how-to-do-it guide. It
presents dividend investing in
logical steps that build a stairway to understanding and
action.

Dividend investing is not about flash and show. It’s about substance and getting the job
done. The text builds the case for dividend stocks, describes the Easy-Rate approach,
and explains how to start and manage a dividend-stock portfolio using the Top 40 list as
your starting point.

The text follows the mission of SensibleStocks.com: To help self-directed individual
investors with fact-based, practical, actionable information that they can use to profit in
the stock market.

I write for the individual investor.
The levels of comprehensiveness and quality are
high, but everything is in plain English and presented in a pleasing format.
The
methodology is totally transparent, and there is nothing that is not fact-based or that you
cannot verify yourself.

The text is non-hyperbolic, educational, and accessible. There are no “Secrets of the
Wall Street Gurus,” “Six Things Wall Street Doesn’t Want You to Know,” or “How to Get
Gains of 1716.8% in Six Months.” Those approaches appeal to some people, but not to
me, and I don’t think to you.

I am excited about dividend investing. Using this e-book as my guide, I have converted a
significant portion of my family's own portfolio over to dividend stocks, in addition to the
real-money Dividend Portfolio tracked elsewhere on this Web site that I use to illustrate
dividend investing in action.

As stated earlier, I think that dividend-paying stocks are an ideal investment for most  
individual investors—about the only exception being someone who is looking for fast
hyper-growth. That is unlikely with dividend stocks. Of course, neither is fast hyper-loss.

Owning dividend stocks is exciting, rewarding, and fun. Jump in the pool, the
water’s fine.

**********

6. Features, Benefits, and Distinctions from Competitors

Here are the most important features and benefits of The Top 40 Dividend Stocks for
2009
:

  • Top 40 List: A list of the Top 40 Dividend Stocks for 2010. Use it as your
    Shopping List to build or improve your dividend stock portfolio. These stocks
    were selected as described above, using an exclusive, proven approach for
    picking winning dividend stocks.

  • Completed Easy-Rate™ Scoresheets: One concise sheet per stock, 40 in all,
    filled out according to the unique point system devised for this special study. This
    saves you the work of looking up data and evaluating stocks yourself. The hard
    work has been done for you.

  • Clickable links: Each Scoresheet has a clickable link to the company’s Web site.
    No cumbersome URLs to enter into your browser. Other links take you directly to
    data sources, relevant articles, and the like.

  • Candid discussion of the pros and cons of dividend stocks. Dividend
    stocks are not for everyone. They will not satisfy someone looking for hyper-growth
    in a short period of time. They are not for rapid-fire or very active traders. The text
    contains a lucid and comprehensive discussion of the pros and cons of dividend-
    paying stocks, and how to identify the best of them.

  • Explains how to build, manage, and maintain a dividend stock portfolio.
    Thoroughly covers when to buy, hold, and sell. This e-book is far more than a list of
    thoroughly researched dividend stocks, it is a complete step-by-step guide to
    dividend investing.

  • Real-money portfolio: The Dividend Portfolio maintained on this site is
    governed by the principles in the three annual editions of The Top 40 Dividend
    Stocks. It illustrates how it all works. The Dividend Portfolio is not a hypothetical
    “model.It is real, and the money is my own. Therefore, I take this very seriously.

  • Up to date: The e-book format bypasses the lengthy delays of regular book
    publishing. By comparison, an often-seen “Best Stocks of 200x” book is  
    published each year with information that is almost a year old by the time the book
    is available.

  • Clear, succinct text: About 85 pages of text are included. The text is a friendly,
    comprehensive, and intelligent discussion about all aspects of dividend investing.
    It includes a complete step-by-step guide to creating and maintaining a portfolio
    of dividend-paying stocks. The book is written in an accessible, conversational
    style. The text is augmented with illustrations, tables, summaries, and other aids to
    understanding.

  • No separate pamphlets: The text is fully integrated. It flows logically. It contains
    complete information that is easily comprehensible. There are no cumbersome
    “bonus reports” that are really just come-ons to make it seem like you are
    getting a great deal. That’s just a marketing ploy—and it’s also lazy, forcing you
    to weave information from each pamphlet into the complete picture. I've already
    painted the complete picture for you.

  • List of omitted stocks: These are stocks you might normally expect to find in a
    list of the best dividend stocks, but which did not make the grade here. The list
    of omitted stocks contains eye-opening facts that show you why these companies
    did not make the Top 40.

  • List of the 2009 Top-40 stocks that did not make 2010's Top-40 list: This
    new feature contains suggestions on whether to keep or sell stocks purchased
    from last year's list. Usually, you want to hold onto them. A stock may have fallen off
    the new list because it just got out-scored, or its yield became too low because of
    a price run-up. But if you bought it at a lower price and higher yield, and it is raising
    its dividends, don't sell it. It may be ineligible for a new purchase right now, but that
    does not mean that it is not a good long-term holding. The fact is, a well-managed
    dividend portfolio does not experience much turnover. That is one of the beauties
    of dividend investing.

  • Focus on rising dividends: The point system also rewards companies that
    regularly increase their dividends. Every company (with one exception) on the
    Top 40 list has raised its dividends for at least 5 years in a row.  To keep up with
    inflation and generate the best total returns, you need to know which companies
    raise their dividends regularly.

**********

7. How to Purchase

1.     Click any of the “Buy Now” buttons located on this page. The price is $39...less than
a buck a stock, plus you get the complete text, step-by-step guide, and filled-out Easy-
Rate Scoresheets for each stock.
2.     Payment is securely handled through PayPal. You do not need a PayPal account—
they accept major credit cards in the usual fashion.
3.     After payment is confirmed, you will be directed to a “Thank You” page. There you
will find a clear link to the document you have purchased. You will also receive a
confirmation email, and that also will contain the link to the document.
4.     Use the link to access the pdf document (e-book). Access is instantaneous.
Download the document to your own computer. While the material is copyrighted, there
are no annoying restrictions on printing or any other use of the e-book you have
purchased. You own it.

It’s as easy as that. Within a few minutes, you will have your own copy of
THE TOP 40
DIVIDEND STOCKS FOR 2010: How to Generate Wealth or Income from
Dividend Stocks.

Best Wishes for Your Investing Success,

Dave Van Knapp

PS: I am really excited about dividend investing. After creating the original 2008 edition,
I revamped my approach to the Dividend Portfolio tracked on this Web site. The
portfolio is now managed totally according to the methodology presented in
THE TOP
40 DIVIDEND STOCKS
e-books.

Not only that, I have converted a good portion of my own personal nest egg to dividend
investing. I am convinced that for the average individual investor, this is the best form of
investing for the long haul. And that includes me.

PPS: This Special Study is not sold in bookstores. It’s easy to order online. Just click on
one of the "Buy Now" buttons to the right. You will get
THE TOP 40 DIVIDEND
STOCKS FOR 2010: How to Generate Wealth or Income from Dividend Stocks
in
minutes. Downloading the report to your computer is instantaneous once payment is
completed.
Dave Van Knapp

Author of

SENSIBLE STOCK INVESTING: How to
Pick, Value, and Manage Stocks

and

THE TOP 40 DIVIDEND STOCKS FOR
2010: How to Generate Wealth or Income
from Dividend Stocks

(This is the third annual Top 40
Dividend Stocks
e-book that Dave has
published.)
Would You Like to Generate Wealth
or Create Income
with
The Best Dividend Stocks?
Click for published reviews of
THE TOP 40 DIVIDEND STOCKS
 
FROM A SATISFIED CUSTOMER

Mr. Van Knapp,

I wanted to touch base with you and
let you know how much I enjoyed
reading your latest e-book. I am a
young investor with a possible 30+
years until retirement looking for
additional investments outside of a
401(k) and Roth IRA....I visited your
personal website and soon after
purchased your book. I have been
educating myself about dividend
stocks as an effective means to
further save for retirement. [Y]our
e-book was very informative, easy to
understand, and out of all the
methods I have seen that are used to
select dividend stocks, yours seems to
be the most logical and sensible.  I am
in the process of using your "Top 40"
as a shopping list and your Easy Rate
sheets as a guide.  

Thanks again Dave!

Sincerely,
J. D. Stanley
(re: 2009 edition)
Price $39.00
Price $39.00
Price $39.00
Price $39.00
Price $39.00
NEW FEATURES FOR 2010:

--A glossary of dividend terms.

--A more complete discussion of
my own Dividend Portfolio, which is
based on the investment strategies
and stocks in the annual Top 40
series.

--A modification to the scoring
system to place a little more
emphasis on higher-yielding stocks
without adding appreciably to risk.

--A discussion of what to do with
stocks purchased from 2009's list
that did not make 2010's list.
(Hint: In most cases, keep them.)
Price $39.00
Price $39.00
FROM A SATISFIED CUSTOMER

Dave,

I purchased your 2010 Top 40
Dividend Stocks e-book and have
enjoyed reading it tremendously!  
Your writing and Easy-Rate model
has made my personal investing
experience a lot more enjoyable.  
Anytime I have a question about a
particular stock, I find your system
very beneficial and helpful in
making a more educated decision
about a particular equity.

Once again, thank you for your
help and plan.  I have modeled my
own personal financial strategy off
your Sensible Dividend Plan and
feel pretty good about the base I
have created for my long-term
goals.

Warmest regards,
Bill Comerford

(re: 2010 edition)
IN A NUTSHELL:
WHAT IS THIS?

The Top 40 Dividend Stocks for 2010
is an exclusive selection of the best
dividend stocks available today.

Besides the Top 40 list and analysis,
this e-book also provides a
comprehensive, straightforward
methodology for picking dividend
stocks; a step-by-step guide for
building a dividend stock portfolio;
and 40 filled-out Easy-Rate sheets
analyzing each stock in the Top 40.

The e-book comprises 129 pages,
downloadable into your computer as
an Adobe pdf document. The file has
no annoying restrictions on printing
or copying. It will print with no
hassles on 8.5 x 11-inch paper.
"This is the best dividend stock
book I know."

--Jason Kelly, author of the
best-selling
The Neatest Little
Guide to Stock Market Investing
See the results of following the strategies
and stock selections of
THE TOP 40
DIVIDEND STOCKS FOR 2010 in an actual
Dividend Portfolio.
See the results of following the strategies
and stock selections of
THE TOP 40
DIVIDEND STOCKS FOR 2010 in an actual
Dividend Portfolio.