Update: Dividend Stock Picks for the Week of 7/9/12 to 7/13/12

Welcome back to Dividend Stock Investing for the Common Man! Thank you stopping by and supporting the idea of investing in dividend paying stocks for the long term. I wanted to recap last week's picks for you since it is important to review all investments on a weekly, if not daily, basis.


It was a 12 for 19 week. 63% of my picks increased in value.PowerShares High Yld. Dividend Achv(ETF) (PEY) remained unchanged at $9.41 per share. Consumer staples such as The Procter & Gamble Company(NYSE:PG),and General Mills, Inc.(NYSE:GIS) really popped with excellent weekly gains. Exelon Corporation(NYSE:EXC), Verizon Communications Inc.(NYSE:VZ) and AFLAC Incorporated(NYSE:AFL) were also the big winners of the week. 


Although we made some serious cash this week it is not how many times you win short term, but rather which investments can provide you with a steady income stream over the long term. When investing in dividend paying stocks you are protecting yourself from stock market volatility. If the market goes down one quarter, the dividend payment will help recoup the losses.


I like companies such as Dunkin Brands Group Inc(NASDAQ:DNKN) and Yum! Brands, Inc.(NYSE:YUM) because they offer quick and convenient service in the food services sector. Both have a long way to go to compete with McDonald's Corporation (NYSE:MCD) however they both are a solid investment now and throughout your working career.


Let these companies work hard so they can maintain their dividend and increase it year over year. As a shareholder, it is like receiving a raise each year. Reinvest your dividends to maximize your profits!


Until next time friends, keep investing as much as you can on a weekly basis. Perform your due diligence and invest in companies that you feel comfortable with. Do not risk your hard earned dollars by investing in unknown, unreliable companies.


Feel free to watch the great videos below, featuring some of this week's winners!


Company Name/Stock Ticker/Current Price/7/8/12 Price/7/13/12 Price (end of day)


AFLAC Incorporated(NYSE:AFL) $42.63 $43.60
General Mills, Inc.(NYSE:GIS) $38.76 $39.04
American Capital Agency Corp.(NASDAQ:AGNC) $34.26 $34.67
CVS Caremark Corporation(NYSE:CVS) $48.12 $48.05
Diageo plc (ADR)(NYSE:DEO) $103.10 $104.37
PowerShares High Yld. Dividend Achv(ETF) (PEY) $9.41 $9.41
Verizon Communications Inc.(NYSE:VZ) $44.42 $45.21
Merck & Co., Inc.(NYSE:MRK) $41.51 $43.47
The Procter & Gamble Company(NYSE:PG) $61.28 $65.09
Applied Materials, Inc.(NASDAQ:AMAT) $11.04 $10.48
Duke Energy Corp(NYSE:DUK) $66.23 $66.74
Dunkin Brands Group Inc(NASDAQ:DNKN) $34.48 $34.71
Exelon Corporation(NYSE:EXC) $37.35 $38.52
General Growth Properties Inc(NYSE:GGP) $18.49 $18.07
Yum! Brands, Inc.(NYSE:YUM) $64.92 $64.72
The Men's Wearhouse, Inc.(NYSE:MW) $27.74 $27.61
Dicks Sporting Goods Inc(NYSE:DKS) $49.80 $48.18
Lockheed Martin Corporation(NYSE:LMT) $86.86 $87.25
Northrop Grumman Corporation(NYSE:NOC) $63.47 $63.79
KKR & Co. L.P.(NYSE:KKR) $13.23 $13.11

Proctor & Gamble Videos

General Mills Videos

Yum! Brands, Inc. - YUM

I love fried chicken (KFC). I love pizza (Pizza Hut). I love the $5 box meal at Taco Bell. Shrimp is always tasty at Long John Silver’s (LJS) and A&W All-American Food Restaurants (A&W), well I've never been to one, but who doesn't like a root beer float! All of these companies are owned by YUM! Brands, Inc., stock ticker YUM. They pay a $0.28 dividend, current dividend yield of 2.12%. I generally like any company which pays higher than 2% dividend yield, but the company must be diversified in their industry and post solid numbers each quarter. YUM does just that. Their market cap is 24.75 billion dollars, they are 77% institutionally owned, and have a P/E of 21.04. YUM went up $1.58 today alone!

YUM's biggest competitors are McDonald's (MCD), Panera Bread (PNRA), Chipotle Mexican Grill, Inc. (CMG), Burger King Holdings (BKC), Darden Restaurants (DRI) and Wendy's (WEN). That's a lot of competition, but YUM has developed their own niche and are exceeding most analyst's expectations. It is very difficult to stop the MCD money train or the buzz around PNRA or CMG, but YUM is taking over China and various other foreign countries. It has been said that in China, KFC and Pizza Hut are the best fast food places to go to. The Chinese interest in fried chicken and the All American Pizza pie is gaining momentum. True, MCD is opening restaurants left and right, but are they ruling the pizza and fried chicken industry? They do not even offer those two items on their current menus. I am not bashing MCD, actually I like MCD as a buy, more so than YUM, but one must get invest in the fast food industry as heavily as possible. YUM is a different type of buy than MCD. Both are great growth stocks while paying a stable, healthy dividend to boot! Currently, YUM is the McDonald's of China until MCD injects their marketing campaign with $$$.

YUM will continue to expand as Chinese and other foreign country's consumption expands. They are rapidly expanding overseas, and the people in these markets are seeing their median income rise faster than any other time in history. Fast food worked in the United States because it was cheap and convenient, and that is why it will work elsewhere. The food may not always be the best for you, but each YUM brand provides a healthy alternative for those health conscious "Common Man" investors out there.

Please take the time to visit YUM's website, click here. Also, visit their Investor Relations website, here. While on their Investor Relations website there is a 3 minute and 34 second message from their Chairman & CEO David Novak, check it out! He is a real nice guy and has a shareholders first way of doing business.

I have posted a few videos from YouTube about YUM. I highly suggest if you own some MCD already to pick up some YUM shares before purchasing any PNRA, CMG, BKC or WEN. Just as UL is a great alternative to PG, you can't lose with the one, two punch of YUM, MCD. Until next time, reinvest those dividends, and have a great weekend!