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.
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Best Dividend Stock List

Company Name	Ticker	Industry	Yield	Years of Dividend Increases
Dover Corp.	DOV	Machinery	2.8%	62
Parker-Hannifin Corp.	PH	Industrial Equipment	1.4%	61
Genuine Parts Co.	GPC	Auto Parts	2.9%	61
Procter & Gamble Co.	PG	Consumer Products	3.1%	61
Emerson Electric	EMR	Industrial Equipment	3.0%	60
3M Company	MMM	Conglomerate	2.0%	59
Lowe's Companies	LOW	Retail-Home Improv.	2.0%	55
Colgate-Palmolive Co.	CL	Personal Products	2.2%	54
Nordson Corp.	NDSN	Machinery	0.9%	54
Tootsie Roll Industries	TR	Confectioner	1.0%	51
Target Corp.	TGT	Retail-Discount	4.0%	50
Stanley Black & Decker	SWK	Tools/Security Products	1.5%	50
Commerce Bancshares	CBSH	Banking	1.6%	49
Coca-Cola Company	KO	Beverages-Non-alcoholic	3.3%	55
Federal Realty Inv. Trust	FRT	REIT-Shopping Centers	3.0%	49
H.B. Fuller Company	FUL	Chemical-Specialty	1.1%	48
Sysco Corp.	SYY	Food-Wholesale	2.5%	47
Universal Corp.	UVV	Tobacco	4.1%	46
W.W. Grainger Inc.	GWW	Electronics-Wholesale	2.3%	46
Leggett & Platt Inc.	LEG	Furniture/Bldg. Prod.	3.0%	46
PPG Industries Inc.	PPG	Conglomerate	1.5%	46
C.R. Bard Inc.	BCR	Medical Instruments	0.3%	45
Becton Dickinson & Co.	BDX	Medical Instruments	1.3%	45
Kimberly-Clark Corp.	KMB	Personal Products	3.3%	45
PepsiCo Inc.	PEP	Beverages/Snack Food	2.8%	45
Helmerich & Payne Inc.	HP	Oil&Gas	2.6%	44
S&P Global Inc.	SPGI	Publishing	1.0%	44
Wal-Mart Stores Inc.	WMT	Retail-Discount	2.1%	44
Telephone & Data Sys.	TDS	Telecommunications	2.2%	43
Illinois Tool Works	ITW	Machinery	1.9%	43
Automatic Data Proc.	ADP	Business Services	2.2%	42
Archer Daniels Midland	ADM	Agriculture	3.2%	42
McDonald's Corp.	MCD	Restaurants	2.4%	42
Carlisle Companies	CSL	Rubber and Plastics	1.3%	41
Sherwin-Williams Co.	SHW	Paints	0.9%	39

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Best Dividend Stocks of December 2017

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