For the beginning of the year, I did some research on a lot of stocks and wrote the Best Dividend Stocks for 2013 eBook (you can download it for free here). This eBook includes 30 Dividend Growth Stocks (20 US and 10 Canadian) that have been showing very solid dividend metrics.
On top of analyzing what I think will be the best 2013 dividend stocks (30 stock analyses in this book), my research over the Holidays led me to create a list of 96 US dividend stocks. This exhaustive list has been created based on specific metrics. I’m using dividend filters described in Dividend Growth Freedom Through Passive Income. These metrics have been proven to combine both dividend and capital growth for each company.
Here’s the list of the dividend metrics I used to find the Best US dividend stocks:
Dividend yield over 3%
5 year positive dividend growth
Dividend payout ratio under 75%
Return on equity (ROE) over 10%
5 year positive annual income growth rate
Current price / earnings ratio (PE) under 20
Top US Dividend Stocks for 2013
Ticker Name Dvd Yield Dvd 5Y Growth EPS 5Y Growth Payout Ratio P/E ROE Industry
STRA Strayer Education Inc 6,99 26,19 11,75 46,31 7,7 159,47 Schools
WU Western Union Co/The 4 106,99 11,82 16,66 7,26 150,47 Commercial Serv-Finance
STX Seagate Technology PLC 4,27 20,11 89,19 12,8 3,92 111,85 Computers-Memory Devices
LMT Lockheed Martin Corp 4,88 23,36 6,1 40,93 8,88 106,18 Aerospace/Defense
CPB Campbell Soup Co 3,29 7,18 24,26 48,45 14,51 77,95 Food-Misc/Diversified
LLTC Linear Technology Corp 3,01 7,49 13,28 57,36 19,54 58,64 Semicon Compo-Intg Circu
K Kellogg Co 3,23 7,9 1,97 49,07 15,97 50,31 Food-Misc/Diversified
AHGP Alliance Holdings GP LP 5,76 21,67 19,72 63,6 14,35 48,46 Coal
CPSI Computer Programs & Systems Inc 3,64 5,02 16,46 65,78 20,35 46,29 Medical Information Sys
MCD McDonald\'s Corp 3,51 22,87 10,14 47,42 16,55 40,01 Retail-Restaurants
ARLP Alliance Resource Partners LP 6,81 13,6 24,68 34,26 9,75 36,06 Coal
CNP CenterPoint Energy Inc 3,78 4,05 11,38 43,71 17,39 35,66 Gas-Distribution
KMB Kimberly-Clark Corp 3,55 7,02 6,58 69,58 16,11 35,17 Consumer Products-Misc
HNZ HJ Heinz Co 3,58 6,39 5,38 66,7 16,72 33,35 Food-Misc/Diversified
HRB H&R Block Inc 4,4 7,88 9,68 60,35 13,67 32,08 Commercial Serv-Finance
SXL Sunoco Logistics Partners LP 3,69 9,32 44,64 54,37 13,89 31,9 Pipelines
CBRL Cracker Barrel Old Country Store Inc 3,08 18,47 13,14 25,73 14,18 31,68 Retail-Restaurants
MAT Mattel Inc 3,39 12,28 11,7 41,26 14,92 31,52 Toys
FII Federated Investors Inc 4,65 24,98 1,59 64 11,41 29,75 Invest Mgmnt/Advis Serv
PEP PepsiCo Inc 3,11 9,29 2,9 49,55 16,55 26,39 Beverages-Non-alcoholic
DRI Darden Restaurants Inc 3,74 20,9 4,39 46,96 14,59 25,5 Retail-Restaurants
INTC Intel Corp 4,14 14,09 16,55 31,89 9,31 24,94 Electronic Compo-Semicon
MSFT Microsoft Corp 3,08 14,87 6,52 39,58 11,44 24,5 Applications Software
HAS Hasbro Inc 3,9 18,13 5,83 41,07 13,84 23,71 Toys
SYY Sysco Corp 3,51 7,28 3,07 55,99 14,23 23,16 Food-Wholesale/Distrib
GIS General Mills Inc 3,31 10,81 17,79 51,05 15,39 22,96 Food-Misc/Diversified
TAL TAL International Group Inc 7,4 19,46 123,41 58,79 11,24 22,59 Transport-Equip&Leasng
KLAC KLA-Tencor Corp 3,28 23,24 117,26 30,9 11,27 22,25 Semiconductor Equipment
CVX Chevron Corp 3,28 9,22 29,1 22,83 9,36 21,68 Oil Comp-Integrated
GPC Genuine Parts Co 3,11 6,2 8,9 49,86 16,01 20,98 Distribution/Wholesale
GES Guess? Inc 3,26 36,31 6,59 27,93 9,62 20,86 Retail-Apparel/Shoe
RTN Raytheon Co 3,5 13,94 21,27 32,4 9 20,31 Aerospace/Defense
DBD Diebold Inc 3,72 4,29 9,18 50,52 11,9 19,96 Computers-Integrated Sys
OKS ONEOK Partners LP 4,55 5,41 21,55 57,07 16,55 19,78 Pipelines
WSTG Wayside Technology Group Inc 5,12 1,99 18,67 53,94 10,25 19,25 Applications Software
ABT Abbott Laboratories 3,14 9,62 103,57 63,69 12,95 19,22 Medical-Drugs
ERIE Erie Indemnity Co 3,33 6,67 166,58 59,76 22,46 19,18 Insurance Brokers
RSRV Reserve Petroleum Co 6,67 10,76 29,88 30,52 9,46 18,92 Oil Comp-Explor&Prodtn
RYN Rayonier Inc 3,57 5,19 26,85 67,69 23,89 18,61 REITS-Diversified
COP ConocoPhillips 4,57 9,99 12,32 29,21 8,64 18,36 Oil Comp-Integrated
NSC Norfolk Southern Corp 3,28 15,11 11,78 30,06 11,18 18,12 Transport-Rail
WHG Westwood Holdings Group Inc 4,1 7,11 6,63 74,87 20,99 17,95 Invest Mgmnt/Advis Serv
ETN Eaton Corp 3,01 12,06 7,93 34,22 11,95 17,56 Diversified Manufact Op
NOC Northrop Grumman Corp 3,14 8,29 5,36 26,03 9,65 17,41 Aerospace/Defense
DO Diamond Offshore Drilling Inc 5,05 14,87 4,26 50,55 13,76 17,12 Oil&Gas Drilling
CA CA Inc 4,38 37,97 14,29 20,47 11,54 17,02 Enterprise Software/Serv
CATO Cato Corp/The 3,37 8,79 9,44 39 13,18 16,82 Retail-Apparel/Shoe
HWCC Houston Wire & Cable Co 3,23 36,85 35,7 31,9 11,97 16,75 Distribution/Wholesale
PWOD Penns Woods Bancorp Inc 4,65 1,11 13,51 57,1 10,97 16,42 Commer Banks-Eastern US
PG Procter & Gamble Co/The 3,28 10,21 1,06 66,06 18,28 16,3 Cosmetics&Toiletries
SWY Safeway Inc 4,16 20,4 13,44 36,31 8,37 15,47 Food-Retail
CNAF Commercial National Financial Corp/PA 4,78 5,39 14,81 40,91 7,66 15,06 Commer Banks-Eastern US
WABC Westamerica Bancorporation 3,36 1,71 7,17 47,41 14,67 15,06 Commer Banks-Western US
CNK Cinemark Holdings Inc 3,38 45,23 17,4 73,93 16,23 15,03 Theaters
CLF Cliffs Natural Resources Inc 6,73 48,58 103,03 7,26 7,95 15 Metal-Iron
MXIM Maxim Integrated Products Inc 3,29 6,55 31,29 72,6 19,34 15 Semicon Compo-Intg Circu
FLO Flowers Foods Inc 3,24 17,42 6,5 64,07 21,97 14,94 Food-Baking
ALV Autoliv Inc 3,41 3,62 45,53 25,49 10,86 14,42 Auto/Trk Prts&Equip-Orig
FRFC First Robinson Financial Corp 3,02 7,89 188,1 20,04 7,02 14,39 Commer Banks-Central US
JNJ Johnson & Johnson 3,43 8,36 4,56 63,65 14,1 14,26 Medical-Drugs
WEC Wisconsin Energy Corp 3,19 18,81 19,48 47,19 15,58 13,93 Electric-Integrated
MGRC McGrath RentCorp 3,58 5,96 4,67 45,75 14,27 13,63 Rental Auto/Equipment
SBSI Southside Bancshares Inc 3,88 20,03 25,95 37,49 10,03 13,48 Commer Banks-Central US
PAA Plains All American Pipeline LP 4,69 5,15 66,91 60,31 16,05 13,43 Pipelines
SYBT SY Bancorp Inc 3,21 3,88 5,38 42,07 12,72 13,31 Commer Banks-Southern US
CATC Cambridge Bancorp 4,08 5,18 8,31 43,15 10,42 13,18 Commer Banks-Eastern US
WAG Walgreen Co 3,25 23,74 8,75 39,87 13,46 12,86 Retail-Drug Store
AROW Arrow Financial Corp 4,04 3,23 5,83 52,2 13,44 12,79 Commer Banks-Eastern US
CCNE CNB Financial Corp/PA 3,82 1,59 100,91 53,79 12,67 12,49 Commer Banks-Eastern US
MBCN Middlefield Banc Corp 4,57 2,5 37,74 42,71 6,69 12,46 Commer Banks-Central US
TAXI Medallion Financial Corp 6,71 1,55 11,88 67,29 22,34 12,39 Investment Companies
SO Southern Co/The 4,44 4,02 2,2 72,67 17,49 12,35 Electric-Integrated
NKSH National Bankshares Inc 3,2 7,25 6,35 39,34 12,84 12,29 Commer Banks-Southern US
FMCB Farmers & Merchants Bancorp/Lodi CA 3,11 5,57 3,73 41,24 12,72 12,26 Commer Banks-Western US
QNBC QNB Corp 4,39 3,43 22,09 35,48 8,49 12,23 Commer Banks-Eastern US
MFI MicroFinancial Inc 3,24 3,71 6,79 33,46 11,58 12,03 Finance-Leasing Compan
GCBC Greene County Bancorp Inc 3,33 6,96 25,47 49,91 14,56 11,77 S&L/Thrifts-Eastern US
CNL Cleco Corp 3,2 7,63 5,26 34,9 16,42 11,77 Electric-Integrated
CTBI Community Trust Bancorp Inc 3,78 2,88 10,36 48,51 11,65 11,67 Commer Banks-Southern US
WPC WP Carey Inc 5,19 4,75 30,98 61,7 20,7 11,62 Real Estate Mgmnt/Servic
OMI Owens & Minor Inc 3,02 14,34 4,66 44,11 15,11 11,58 Distribution/Wholesale
WASH Washington Trust Bancorp Inc 3,6 3,09 4,65 48,12 12,36 11,56 Commer Banks-Eastern US
AWR American States Water Co 3,17 4,92 36,08 48,92 16,95 11,55 Water
CMS CMS Energy Corp 4,06 44,96 14,99 37,29 16,29 11,41 Electric-Integrated
UNTN United Tennessee Bankshares Inc 3,92 2,13 19,51 23,13 8,12 11,12 S&L/Thrifts-Southern US
FKYS First Keystone Corp 4,1 2,59 8,81 53,31 13,05 11,04 Commer Banks-Eastern US
MGEE MGE Energy Inc 3,05 1,96 6,14 57,49 19,69 11,02 Electric-Integrated
PNY Piedmont Natural Gas Co Inc 3,86 3,75 8,87 73,01 19,94 10,86 Gas-Distribution
CPK Chesapeake Utilities Corp 3,18 3,95 41,02 47,24 16,38 10,7 Gas-Distribution
UNS UNS Energy Corp 4,09 14,08 87,25 56,38 18,48 10,68 Electric-Integrated
XEL Xcel Energy Inc 3,92 3,21 8,1 60,1 15,06 10,48 Electric-Integrated
AEP American Electric Power Co Inc 4,33 3,8 6,7 56,89 14,5 10,32 Electric-Integrated
FLIC First of Long Island Corp/The 3,39 10,39 7 40,59 11,7 10,26 Commer Banks-Eastern US
DIMC Dimeco Inc 3,53 4,42 3,53 43,48 11,61 10,21 Commer Banks-Eastern US
SCG SCANA Corp 4,13 2,51 3,04 64,6 15,4 10,13 Electric-Integrated
LG Laclede Group Inc/The 4,11 2,6 24,57 56,8 15,45 10,12 Gas-Distribution
There are several companies that were part of my top 2012 dividend stocks and are back this year (just think of LMT, MSFT, INCT, HAS, GIS, COP, PG, JNJ, WEC, PEP, STX, and many others). It’s not a surprise since thoese companies have shown strong metrics for the past 5 years; they just continue to offer great performance over time.
They Are Not Stock Pick Recommendations
I’ve done a lot of research to produce this list of stocks (and even more to write my book for 2013!) but they cannot be considered as stock recommendations in and of themselves. I truly believe in creating a proper mix in your asset allocation for your own portfolio. The other thing when I look at my 2012 results is that I had 2 stocks drop severely (Avon AVP and RadioShack RSH). Even though the overall portfolio did well, I’m not a professional stock picker and you must do your own research and analysis before buying any stocks on this list.
Among the 96 dividend growth stocks on this chart, I’ve selected the following 20 picks for my “Best 2013 Dividend Stocks” book:
Abbott Laboratories – ABT
Autoliv – ALV
CA Inc. – CA
Campbell Soup – CPB
Chesapeake Utilities – CPK
Chevron Corp – CVX
Darden Restaurants – DRI
General Mills – GIS
Heinz – HNZ
Genuine Parts – GPC
Intel – INTC
Johnson & Johnson – JNJ
Kellogg – K
Kimberly-Clark – KMB
Mattel – MAT
McDonald’s – MCD
Microsoft – MSFT
Procter & Gamble – PG
Safeway – SWY
Seagate Technology – STX
Walgreens – WAG
Western Union – WU
Wisconsin Energy – WE
What are your picks for 2013? Stay tuned next Monday, I’m giving you my list of the top Canadian Dividend Growth stocks for 2013 ;-).
Disclaimer: I hold CVX, INTC, JNJ, STX
Great list, thanks for sharing it. There are definitely some stocks I didn’t know about.
As far as your 2013 picks, how are you looking at ABT after the spinoff? After the split the yield of ABT is now 1.75% which is a way below my criteria to invest in companies yielding at least 3% so I am a bit confused now if to put ABT aside and stop investing in it or what to do. It no longer meets my criteria.
How are you looking at ABT?
I have the same question about ABT. Is it still a good dividend growth stock given the low yield now?
Where is “The Monthly Dividend Company?” Realty Income Corporation has paid 506 consecutive monthly dividends, raising them 3 or 4 times per year, and never cutting them! It is now paying 4.5%, but usually has paid closer to 6%. The only reason the yield has gone down is because the price has gone up!