Updated: February 22, 2016
It’s a one-two punch I love to see in a stock: a growing dividend and a rock-solid commitment to research and development.
These companies serve up a profitable combo: immediate cash in your pocket and potential for huge gains—and even bigger dividend payouts—as they churn out the next wave of must-have products.
I bring this up because right now, S&P 500 companies are spending big on both R&D and dividends.
Here are the latest numbers from FactSet: in the 12 months ended September 30, 2015, S&P 500 firms poured $257.8 billion into R&D, a 10-year high. At the same time, they doled out $410.8 billion in dividend payments, also the highest total in at least a decade.
The bottom line? Now is a great time to shop for these income-focused innovators, particularly with the selloff driving their prices down—and their dividend yields up. …