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 | Symbol | Sector | Industry | Years of Dividend Increases | Yield |
---|---|---|---|---|---|
Archer Daniels Midland | ADM | Consumer Staples | Food Products | 45 | 3.22% |
AFLAC Inc. | AFL | Financials | Insurance | 38 | 3.08% |
Arrow Financial Corp. | AROW | Financials | Banks | 26 | 3.63% |
Franklin Resources | BEN | Financials | Capital Markets | 40 | 5.13% |
Black Hills Corp. | BKH | Utilities | Multi-Utilities | 49 | 3.82% |
Cullen/Frost Bankers | CFR | Financials | Banks | 26 | 4.09% |
Cincinnati Financial | CINF | Financials | Insurance | 60 | 3.02% |
Community Trust Banc. | CTBI | Financials | Banks | 40 | 4.77% |
Chevron Corp. | CVX | Energy | Oil, Gas & Consumable Fuels | 33 | 6.15% |
Enterprise Bancorp Inc. | EBTC | Financials | Banks | 28 | 3.22% |
Consolidated Edison | ED | Utilities | Multi-Utilities | 46 | 4.29% |
Eagle Financial Services | EFSI | Financials | Banks | 33 | 3.98% |
Essex Property Trust | ESS | Real Estate | Equity Real Estate Investment Trusts (REITs) | 26 | 3.84% |
Eaton Vance Corp. | EV | Financials | Capital Markets | 39 | 3.66% |
Federal Realty Inv. Trust | FRT | Real Estate | Equity Real Estate Investment Trusts (REITs) | 53 | 5.35% |
Genuine Parts Co. | GPC | Consumer Discretionary | Distributors | 64 | 3.35% |
International Business Machines | IBM | Information Technology | IT Services | 25 | 5.29% |
John Wiley & Sons Inc. | JW-A | Communication Services | Media | 27 | 4.33% |
Coca-Cola Company | KO | Consumer Staples | Beverages | 58 | 3.31% |
Leggett & Platt Inc. | LEG | Consumer Discretionary | Household Durables | 48 | 3.90% |
Matthews International | MATW | Industrials | Commercial Services & Supplies | 25 | 3.84% |
Mercury General Corp. | MCY | Financials | Insurance | 33 | 5.63% |
MDU Resources | MDU | Utilities | Multi-Utilities | 28 | 3.51% |
3M Company | MMM | Industrials | Industrial Conglomerates | 62 | 3.61% |
Altria Group Inc. | MO | Consumer Staples | Tobacco | 51 | 7.86% |
NACCO Industries | NC | Energy | Oil, Gas & Consumable Fuels | 35 | 3.76% |
National Fuel Gas | NFG | Utilities | Gas Utilities | 50 | 3.90% |
Northeast Indiana Bancorp | NIDB | Financials | Thrifts & Mortgage Finance | 25 | 3.46% |
National Retail Properties | NNN | Real Estate | Equity Real Estate Investment Trusts (REITs) | 31 | 5.87% |
Nucor Corp. | NUE | Materials | Metals & Mining | 47 | 3.54% |
Northwest Natural Gas | NWN | Utilities | Gas Utilities | 64 | 3.74% |
Realty Income Corp. | O | Real Estate | Equity Real Estate Investment Trusts (REITs) | 27 | 4.52% |
Old Republic International | ORI | Financials | Insurance | 39 | 5.21% |
People’s United Financial | PBCT | Financials | Banks | 28 | 6.81% |
Raytheon Technologies | RTX | Industrials | Aerospace & Defense | 26 | 3.11% |
Southside Bancshares | SBSI | Financials | Banks | 25 | 4.50% |
Sonoco Products Co. | SON | Materials | Containers & Packaging | 37 | 3.24% |
1st Source Corp. | SRCE | Financials | Banks | 32 | 3.25% |
AT&T Inc. | T | Communication Services | Diversified Telecommunication Services | 36 | 6.98% |
First Financial Corp. | THFF | Financials | Banks | 31 | 3.02% |
Tompkins Financial Corp. | TMP | Financials | Banks | 33 | 3.14% |
United Bankshares Inc. | UBSI | Financials | Banks | 45 | 5.36% |
UGI Corp. | UGI | Utilities | Gas Utilities | 33 | 3.82% |
Universal Health Realty Trust | UHT | Real Estate | Equity Real Estate Investment Trusts (REITs) | 35 | 4.14% |
Universal Corp. | UVV | Consumer Staples | Tobacco | 49 | 7.10% |
Walgreens Boots Alliance Inc. | WBA | Consumer Staples | Food & Staples Retailing | 45 | 4.92% |
Weyco Group Inc. | WEYS | Consumer Discretionary | Distributors | 38 | 5.33% |
ExxonMobil Corp. | XOM | Energy | Oil, Gas & Consumable Fuels | 37 | 8.71% |
(Source: Various Corporate Filings, last accessed August 15, 2020.)
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