SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 08, 2012 08:20 ET

Investors Turn to Growth Stocks -- Dividend-Paying General Electric and McDonald's Lose Ground

The Paragon Report Provides Equity Research on General Electric and McDonald's

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 General Electric Co. (NYSE: GE) & McDonald's Corporation (NYSE: MCD). 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.

Presently General Electric pays an annual dividend of 68 cents per share for a yield of around 3.6 percent. Earlier this month the company's financial services unit was sued by units of AerCap Holdings NV for allegedly failing to tell the aircraft-leasing company about a lawsuit in Brazil. According to a complaint filed Feb. 3 in New York State Supreme Court, a lawyer for General Electric Capital Corp. told AerCap in February 2010 that the company was liable for "millions of dollars" in a court case involving Transbrasil SA, the bankrupt Brazilian airline, Bloomberg reports.

In late January, McDonald's Board of Directors declared a quarterly cash dividend of $0.70 per share of common stock payable on March 15, 2012.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at