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||Industry||Yield||Years of Dividend Increases|
|Parker-Hannifin Corp.||PH||Industrial Equipment||2.0%||62|
|Genuine Parts Co.||GPC||Auto Parts||3.1%||62|
|Procter & Gamble Co.||PG||Consumer Products||3.7%||62|
|Emerson Electric||EMR||Industrial Equipment||2.8%||61|
|Lowe’s Companies||LOW||Retail-Home Improv.||2.0%||56|
|Colgate-Palmolive Co.||CL||Personal Products||2.6%||55|
|Stanley Black & Decker||SWK||Tools/Security Products||1.9%||51|
|Federal Realty Inv. Trust||FRT||REIT-Shopping Centers||3.2%||50|
|H.B. Fuller Company||FUL||Chemical-Specialty Centers||1.2%||49|
|W.W. Grainger Inc.||GWW||Electronics-Wholesale||1.7%||47|
|Leggett & Platt Inc.||LEG||Furniture/Bldg. Prod.||3.5%||47|
|PPG Industries Inc.||PPG||Conglomerate||1.7%||47|
|Becton Dickinson & Co.||BDX||Medical Instruments||1.3%||46|
|Kimberly-Clark Corp.||KMB||Personal Products||3.8%||46|
|PepsiCo Inc.||PEP||Beverages/Snack Food||3.4%||46|
|Helmerich & Payne Inc.||HP||Oil&Gas||4.4%||45|
|S&P Global Inc.||SPGI||Publishing||1.0%||45|
|Wal-Mart Stores Inc.||WMT||Retail-Discount||2.5%||45|
|Telephone & Data Sys.||TDS||Telecommunications||2.2%||44|
|Illinois Tool Works||ITW||Machinery||2.3%||44|
|Automatic Data Proc.||ADP||Business Services||2.0%||43|
|Archer Daniels Midland||ADM||Agriculture||2.9%||43|
|Carlisle Companies||CSL||Rubber and Plastics||1.4%||42|
(Source: Various Corporate Filings, last accessed July 4, 2018.)
More About Dividend Stocks
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Milk This Stock for a 21% Yield Today’s post once again highlights my favorite place to find oversized yields: “cash cows.” As longtime readers know, cash cows are mature businesses that pay out most of their profits as dividends. Because.
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Should Investors Consider This High-Yield Stock? It’s no secret that beaten-down stocks can offer some of the biggest payouts. The problem is, though, when a stock is down and out, chances are the business is also struggling. And without a.
Here’s What Buffett Is Buying No doubt, Warren Buffett is one of the best investors on the planet. His partnership began purchasing shares of Berkshire Hathaway Inc. (NYSE:BRK.B) aggressively in 1965, paying about $14.80 each. Over the following decades, Buffett.
Is WMT Still a Top Dividend Stock? Walmart Inc (NYSE:WMT) stock has had quite a choppy ride so far in 2018. The company’s shares climbed to nearly $110.00 apiece in January, but fell to as low as $83.00 apiece in.
Automatic Data Processing Is a Top Dividend Stock In today’s market, few companies are more shareholder-friendly than Automatic Data Processing (NASDAQ:ADP). What do I mean by “shareholder-friendly?” Well, here’s an example: when a company comes across unexpected gains, will management.
This Stock Pays Out 7% Brookfield Renewable Partners LP (NYSE:BEP) wants to do a lot of good, both for nature and for investors. The limited partnership is one of the largest renewable power companies in the world. It aims to.
Magna Stock Taking a Tumble Large-cap dividend growth stocks are not known for making big moves. But on August 8, shares of automotive supplier Magna International Inc. (NYSE:MGA) plunged seven percent as soon as the market opened. Let’s take a.
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