Here’s my own selection of dividend stocks for 2013. Those stocks have been selected because they are showing strong financial metrics for the past five years and are able to grow their dividend in 2013. They are not stock recommendation; it’s just the product of my own research. Please do your own research or seek professional advices from a broker or a financial advisor before buying any dividend stocks.
When you read a title such as “Best 2013 Dividend Stocks” you probably think that I’m pulling out the top 20 American and the top 10 Canadian dividend stocks that will outperform the overall stock market. The goal is obviously to beat the indexes but I’m also focusing on the global results of these stocks.
I wanted to write a book about stocks that, combined together, could generate an interesting result as a whole. I have always found as an investor, pulling the trigger and buying a single stock was easy. Building a strong portfolio where stocks could balance themselves out during different markets (bullish or bearish, stable or volatile) is quite a challenge. This is the reason why I didn’t only focus on the number or on a specific aspect (growth potential, high dividend yield, etc). I tried to put a combination of companies that could weather most economic situations.
This means that you will find stocks that should outperform the stock market if we are bullish and some others will outperform if we enter a bear market too. Some companies will show awesome sales growth and you can expect both dividends and stock values to go up. Others will show mature business models with strong dividend growth habits. But don’t get too excited with the potential of stock appreciation.
My previous book (Best 2012 Dividend Stocks) was built the same way and showed a very interesting result as a whole while some stocks picked individually crushed the stock market or plummeted due to a very bad year.
Best Dividend Growth Stocks for 2013 – Stock Picking Methodology
There is nothing easier than clicking on the “buy” button of your brokerage account page. The problem is what to buy and when to buy it. The other problem investors face is the lack of time to analyze the thousands of stocks available. I guess this is why stock screeners were invented. Then again, one must know how to use them correctly. Prior to writing this book, I used the technique described in my new book; Dividend Growth: Freedom through Passive Income. Here are a few ratios I looked at:
- Dividend yield over 3%
- 5 year dividend growth positive
- Dividend payout ratio under 75%
- Return on equity (ROE) over 10%
- 5 year annual income growth rate positive
- Current price / earnings ratio (PE) under 20
Then, I used other tools mentioned in my book to pull out the “Top 20” US Dividend Stocks and the “Top 10” Canadian Dividend Stocks. Last year, my US picks underperformed the Vanguard Dividend Appreciation ETF (VIG) by 1.47% (as at December 10h, dividend payout included). This was due to a single stock (RadioShack – RSH). If you remove this stock, I outperformed the index by 3.23%. As for the Canadian stock picks, I’m proud to tell you that they have outperformed the index by 8.32% (The iShares Dow Jones Canadian Selected Dividend Index Fund (XDV)). As you can see, my investment process is paying its share of dividends!
What Are The Best 2013 Dividend Stocks?
Here’s the list of my 20 US stock picks and 10 Canadian stocks for 2013:
US Dividend Growth Stocks:
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
Canadian Dividend Growth Stocks:
Andrew Peller – ADW.A
Black Diamond Group – BDI
Calian Technologies – CTY
Emera – EMA
Evertz Technologies – ET
National Bank – NA
Rogers Communications –RCI.B
Power Corporation – POW
Royal Bank – RY
Telus – T
Download Your Copy For Free Until January 5th!
You can download your copy for free for the next five days. After January 5th, the eBook will still be available at the low price of $2.99. I want the maximum of people to benefit from it ;-).
disclaimer: I hold CVX, INTC, JNJ, STX, NA & TGoogle+