SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 08, 2012 08:20 ET

Blue Chip Dividend Plays Losing Appeal in 2012

The Paragon Report Provides Equity Research on 3M and Pfizer

NEW YORK, NY--(Marketwire - Feb 8, 2012) - With the S&P 500 skyrocketing in the early stages of 2012, investors are shifting away from dividend-paying stocks. According to a recent article from The Wall Street Journal (WSJ), dividend payers often are not perceived to have the same potential for earnings and revenue growth as smaller firms. "When the rest of the market is booming, dividend payers are often lagging behind the crowd," the WSJ argues. The Paragon Report examines the outlook for blue chip dividend paying companies and provides equity research on 3M Co. (NYSE: MMM) & Pfizer Inc. (NYSE: PFE). Access to the full company reports can be found at:

In 2012, non-dividend-paying stocks on the Standard and Poor's 500 are up more than eight percent, while dividend payers are down approximately 1.3 percent and the index as a whole is up close to five percent, data from Bespoke Investment Group finds.

While it is possible that dividend stocks could trail this year, Jack Ablin, chief investment officer of Harris Private Bank, told Reuters that "long term, dividends have accounted for nearly half of the S&P 500 investors' total return." Last year, dividends accounted for all 2 percent of the S&P 500 index's total return, according to an article from Reuters.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on blue chip dividend-paying companies register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

3M pays an annual dividend of $2.20 per share for a yield of around 2.5 percent. 3M reported fourth quarter net earnings of $954 million, or $1.35 per share, compared with $928 million, or $1.28 per share, a year earlier.

Pfizer pays an annual dividend of 88 cents for a yield of around 4.2 percent. Last week Pfizer announced the recall of one million packets of birth control pills as there was some packaging error that rendered them useless as contraceptives.

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