Dividends nicer to contemplate if paid by a growing concern

The Ticker

May 14, 1999|By Julius Westheimer

WOULD YOU like a combination of growth and income?

"These growing companies pay dividends, too," says Kiplinger's Finance Advisor. "Not all have high yields, but together they offer a growing dividend stream which provides stability in turbulent markets. Investing equal dollar amounts, these stocks, taken together, are 47 percent less volatile than the S&P 500 index and provide an average 3.8 percent yield."

Here is the list, with current percentage yields in parentheses: Bank of America Corp. (2.6); Bell Atlantic Corp. (2.7); BP Amoco PLC (2.4); Duke Energy Corp. (4.0); Fannie Mae Corp. (1.4); Federal Signal Corp. (3.0); H. J. Heinz Co. (2.6); Public Storage Inc. (3.0); Simon Property Group Inc. (6.8); Spieker Properties Inc. (6.0); Texas Utilities Co. (5.5); Washington Gas Light Co. (5.0).

"If at age 22 you start a job at $30,000 a year and get an inflation-adjusted raise of only 1 percent a year -- and save 10 percent of your income and earn 8 percent -- you will have $1.2 million at age 65. Eight percent is the average return of the S&P 500 stock index between 1926 and 1998. At only 5 percent, you'll have $525,000." ("Getting Rich in America," by Dwight Lee and Richard McKenzie)

COLLEGE CORNER: "If you're looking for an investment to meet college tuition bills or provide a retirement nest egg, consider tax-deferred zero coupon bonds. These `zeros' allow you to lock in a compound interest rate until maturity. The difference between your purchase price and the face value at maturity is your total return." (Income Digest)

MARKET WATCH: "Stocks have room to move higher. Our economy remains solid, interest rates are low and corporate profits' slowdown won't deter investors." (Strategic Investing)

"The Dow will fall to at least 8,000 this summer, then rebound to new highs this fall." (Professional Timing Service)

"At today's price, Yahoo! Inc. trades at 431 times analysts' earnings predictions for 1999." (CNBC-TV)

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