Best Dividend Stocks
The Best Dividend Stocks to Watch
The following “Best Dividend Stocks” list features Income Investors’ favorite dividend ideas, thoroughly vetted and highly rated by our research team.
The stocks below have been hand-picked by our editors. Our five-point investment criteria identifies companies with safe payouts, growing earnings, and a long-term track record. The list is geared toward conservative buy-and-hold investors looking to put new money to work right now.
To be clear, every stock on this list is not appropriate for all investors. Our best dividend stocks list does not represent a complete portfolio. We recommend readers do their own research and consult a professional financial adviser before making any investment decision.
What We Look For
Timeless Business: We look for businesses that have stood the test of time. In some cases, the products that they make have remained almost unchanged for decades. Many of these stocks have been paying out dividends to shareholders for over 100 years.
Competitive Advantage: We look for companies with sustainable advantages. They have patents, powerful brands, irreplaceable assets, a low-cost advantage, or de facto monopolies. By sheltering their profits from competition, these firms can generate oversized margins decade after decade.
Management: We look for great executives who think beyond the next quarter. We want to own companies run by honest managers with above-average skill for allocating capital. We want people with unquestionable integrity, a frank communication style, and a long-term outlook.
Distribution Growth: We look for firms with a commitment to rewarding shareholders. Our best dividend stocks have raised their regular distributions for at least 25 consecutive years. Steady dividend increases signal that the company has a bright future and forces management to be careful when allocating capital.
Dividend Yield: We look for stocks with above-average dividend yields. A high payout suggests that a company might be temporarily out of favor with investors. Studies show that companies with the highest dividend yields tend to outperform the broader market over time.
Best Dividend Stock List
|Company Name||Ticker||Yield||Industry||First Year of Dividend Increase|
|AT&T Inc.||T||5.1%||Telecom Services||1985|
|HCP, Inc.||HCP||4.7%||REIT – Healthcare||1986|
|Target Corporation||TGT||4.4%||Discount Stores||1968|
|Chevron Corporation||CVX||4.1%||Integrated Oil and Gas||1988|
|AbbVie Inc||ABBV||3.9%||Drugs and Biotech||2013*|
|Exxon Mobil Corporation||XOM||3.8%||Integrated Oil and Gas||1983|
|Consolidated Edison, Inc.||ED||3.4%||Diversified Utilities||1975|
|The Coca-Cola Co||KO||3.3%||Beverages – Soft||1963|
|T. Rowe Price Group Inc||TROW||3.3%||Asset Management||1987|
|Emerson Electric Co.||EMR||3.3%||Electronics||1957|
|Procter & Gamble Co||PG||3.2%||Personal Products||1957|
|Kimberly-Clark Corp||KMB||3.0%||Personal Products||1973|
|Archer Daniels Midland Company||ADM||3.0%||Agribusiness||1976|
|Genuine Parts Company||GPC||2.9%||Auto Parts Wholesale||1957|
|Cincinnati Financial Corporation||CINF||2.9%||Insurance||1961|
|Leggett & Platt, Inc.||LEG||2.8%||Home Goods||1972|
|Johnson & Johnson||JNJ||2.7%||Drugs and Biotech||1963|
|PepsiCo, Inc.||PEP||2.7%||Beverages – Soft||1973|
|Wal-Mart Stores Inc||WMT||2.6%||Department Stores||1975|
|Air Products & Chemicals, Inc.||APD||2.6%||Chemicals||1983|
|SYSCO Corporation||SYY||2.4%||Wholesale Food||1971|
*AbbVie Inc (NYSE:ABBV) is a spinoff from Abbott Laboratories (NYSE:ABT). Its first dividend was issued in 2013.
(Source: Various Corporate Filings, last accessed May 29, 2017.)
More About Dividend Stocks
This “Hated” Dividend Stock Yields 7% Over the past few weeks, insiders have quietly bought shares in one of the most hated dividend stocks around, Macy’s Inc (NYSE:M). Last month, shares of the department store giant plunged after management warned.
Best Water Utility Stocks Sometimes, boring businesses can produce exciting returns. Water utility companies are great examples of this. They rarely make headlines, but some of them have been rewarding investors with rising dividends for decades. Let’s take a look.
CIM Stock Offering a High Dividend Yield of 10.2% Imagine finding a dividend stock that pays a north of 10% and is still growing. Now, your initial thought might be that there is a lot of risk in such a.
Warren Buffett Portfolio Holdings 2017 When it comes to dividend investing, why not learn from the best? Billionaire investor Warren Buffett is known for delivering astronomical returns for Berkshire Hathaway Inc. (NYSE:BRK.B) and its shareholders. But he didn’t do it.
Earn a 14.2% Yield From This Dividend Stock Today’s chart highlights “cash cows,” my favorite place to find high-yield dividend stocks. Cash cows represent mature businesses. Because they don’t have to reinvest earnings back into operations for expansion, most of.
GM Stock Dividend Outlook The automotive industry is probably not the first one to come to mind when investors are looking for income ideas. But General Motors Company (NYSE:GM) is now running a solid business and offers a decent dividend.
These Dividend Stocks Yield Up to 11.8% Some of these stocks pay out yields of five percent, seven percent, and even 12%. The companies make money hand over fist. And thanks to President Donald Trump, these dividend payments could be.
Lowe’s Stock: Both Dividend King and Aristocrat Lowe’s Companies, Inc. (NYSE:LOW) is one of the largest home improvement retailers in the world, serving the retail do-it-yourself home improvement market for both the retail customer and commercial businesses. The company operates.
These Trusts Yield Up to 19.3% Kimberly Kay Kreider-Dusek earned a modest living in McMullen County, Texas, until a representative from a local oil company knocked at her door. It turned out her cattle ranch sat on a huge pool.
Today’s commentary highlights one of the biggest things I look for in a high dividend yield stock: a stable industry. As I always like to remind readers, a stock with a high dividend yield typically has a bunch of risks.