Best US Dividend Stocks for 2013



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.

best 2013 dividend stocks

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


TickerNameDvd YieldDvd 5Y GrowthEPS 5Y GrowthPayout RatioP/EROEIndustry
STRAStrayer Education Inc6,9926,1911,7546,317,7159,47Schools
WUWestern Union Co/The4106,9911,8216,667,26150,47Commercial Serv-Finance
STXSeagate Technology PLC4,2720,1189,1912,83,92111,85Computers-Memory Devices
LMTLockheed Martin Corp4,8823,366,140,938,88106,18Aerospace/Defense
CPBCampbell Soup Co3,297,1824,2648,4514,5177,95Food-Misc/Diversified
LLTCLinear Technology Corp3,017,4913,2857,3619,5458,64Semicon Compo-Intg Circu
KKellogg Co3,237,91,9749,0715,9750,31Food-Misc/Diversified
AHGPAlliance Holdings GP LP5,7621,6719,7263,614,3548,46Coal
CPSIComputer Programs & Systems Inc3,645,0216,4665,7820,3546,29Medical Information Sys
MCDMcDonald\'s Corp3,5122,8710,1447,4216,5540,01Retail-Restaurants
ARLPAlliance Resource Partners LP6,8113,624,6834,269,7536,06Coal
CNPCenterPoint Energy Inc3,784,0511,3843,7117,3935,66Gas-Distribution
KMBKimberly-Clark Corp3,557,026,5869,5816,1135,17Consumer Products-Misc
HNZHJ Heinz Co3,586,395,3866,716,7233,35Food-Misc/Diversified
HRBH&R Block Inc4,47,889,6860,3513,6732,08Commercial Serv-Finance
SXLSunoco Logistics Partners LP3,699,3244,6454,3713,8931,9Pipelines
CBRLCracker Barrel Old Country Store Inc3,0818,4713,1425,7314,1831,68Retail-Restaurants
MATMattel Inc3,3912,2811,741,2614,9231,52Toys
FIIFederated Investors Inc4,6524,981,596411,4129,75Invest Mgmnt/Advis Serv
PEPPepsiCo Inc3,119,292,949,5516,5526,39Beverages-Non-alcoholic
DRIDarden Restaurants Inc3,7420,94,3946,9614,5925,5Retail-Restaurants
INTCIntel Corp4,1414,0916,5531,899,3124,94Electronic Compo-Semicon
MSFTMicrosoft Corp3,0814,876,5239,5811,4424,5Applications Software
HASHasbro Inc3,918,135,8341,0713,8423,71Toys
SYYSysco Corp3,517,283,0755,9914,2323,16Food-Wholesale/Distrib
GISGeneral Mills Inc3,3110,8117,7951,0515,3922,96Food-Misc/Diversified
TALTAL International Group Inc7,419,46123,4158,7911,2422,59Transport-Equip&Leasng
KLACKLA-Tencor Corp3,2823,24117,2630,911,2722,25Semiconductor Equipment
CVXChevron Corp3,289,2229,122,839,3621,68Oil Comp-Integrated
GPCGenuine Parts Co3,116,28,949,8616,0120,98Distribution/Wholesale
GESGuess? Inc3,2636,316,5927,939,6220,86Retail-Apparel/Shoe
RTNRaytheon Co3,513,9421,2732,4920,31Aerospace/Defense
DBDDiebold Inc3,724,299,1850,5211,919,96Computers-Integrated Sys
OKSONEOK Partners LP4,555,4121,5557,0716,5519,78Pipelines
WSTGWayside Technology Group Inc5,121,9918,6753,9410,2519,25Applications Software
ABTAbbott Laboratories3,149,62103,5763,6912,9519,22Medical-Drugs
ERIEErie Indemnity Co3,336,67166,5859,7622,4619,18Insurance Brokers
RSRVReserve Petroleum Co6,6710,7629,8830,529,4618,92Oil Comp-Explor&Prodtn
RYNRayonier Inc3,575,1926,8567,6923,8918,61REITS-Diversified
COPConocoPhillips4,579,9912,3229,218,6418,36Oil Comp-Integrated
NSCNorfolk Southern Corp3,2815,1111,7830,0611,1818,12Transport-Rail
WHGWestwood Holdings Group Inc4,17,116,6374,8720,9917,95Invest Mgmnt/Advis Serv
ETNEaton Corp3,0112,067,9334,2211,9517,56Diversified Manufact Op
NOCNorthrop Grumman Corp3,148,295,3626,039,6517,41Aerospace/Defense
DODiamond Offshore Drilling Inc5,0514,874,2650,5513,7617,12Oil&Gas Drilling
CACA Inc4,3837,9714,2920,4711,5417,02Enterprise Software/Serv
CATOCato Corp/The3,378,799,443913,1816,82Retail-Apparel/Shoe
HWCCHouston Wire & Cable Co3,2336,8535,731,911,9716,75Distribution/Wholesale
PWODPenns Woods Bancorp Inc4,651,1113,5157,110,9716,42Commer Banks-Eastern US
PGProcter & Gamble Co/The3,2810,211,0666,0618,2816,3Cosmetics&Toiletries
SWYSafeway Inc4,1620,413,4436,318,3715,47Food-Retail
CNAFCommercial National Financial Corp/PA4,785,3914,8140,917,6615,06Commer Banks-Eastern US
WABCWestamerica Bancorporation3,361,717,1747,4114,6715,06Commer Banks-Western US
CNKCinemark Holdings Inc3,3845,2317,473,9316,2315,03Theaters
CLFCliffs Natural Resources Inc6,7348,58103,037,267,9515Metal-Iron
MXIMMaxim Integrated Products Inc3,296,5531,2972,619,3415Semicon Compo-Intg Circu
FLOFlowers Foods Inc3,2417,426,564,0721,9714,94Food-Baking
ALVAutoliv Inc3,413,6245,5325,4910,8614,42Auto/Trk Prts&Equip-Orig
FRFCFirst Robinson Financial Corp3,027,89188,120,047,0214,39Commer Banks-Central US
JNJJohnson & Johnson3,438,364,5663,6514,114,26Medical-Drugs
WECWisconsin Energy Corp3,1918,8119,4847,1915,5813,93Electric-Integrated
MGRCMcGrath RentCorp3,585,964,6745,7514,2713,63Rental Auto/Equipment
SBSISouthside Bancshares Inc3,8820,0325,9537,4910,0313,48Commer Banks-Central US
PAAPlains All American Pipeline LP4,695,1566,9160,3116,0513,43Pipelines
SYBTSY Bancorp Inc3,213,885,3842,0712,7213,31Commer Banks-Southern US
CATCCambridge Bancorp4,085,188,3143,1510,4213,18Commer Banks-Eastern US
WAGWalgreen Co3,2523,748,7539,8713,4612,86Retail-Drug Store
AROWArrow Financial Corp4,043,235,8352,213,4412,79Commer Banks-Eastern US
CCNECNB Financial Corp/PA3,821,59100,9153,7912,6712,49Commer Banks-Eastern US
MBCNMiddlefield Banc Corp4,572,537,7442,716,6912,46Commer Banks-Central US
TAXIMedallion Financial Corp6,711,5511,8867,2922,3412,39Investment Companies
SOSouthern Co/The4,444,022,272,6717,4912,35Electric-Integrated
NKSHNational Bankshares Inc3,27,256,3539,3412,8412,29Commer Banks-Southern US
FMCBFarmers & Merchants Bancorp/Lodi CA3,115,573,7341,2412,7212,26Commer Banks-Western US
QNBCQNB Corp4,393,4322,0935,488,4912,23Commer Banks-Eastern US
MFIMicroFinancial Inc3,243,716,7933,4611,5812,03Finance-Leasing Compan
GCBCGreene County Bancorp Inc3,336,9625,4749,9114,5611,77S&L/Thrifts-Eastern US
CNLCleco Corp3,27,635,2634,916,4211,77Electric-Integrated
CTBICommunity Trust Bancorp Inc3,782,8810,3648,5111,6511,67Commer Banks-Southern US
WPCWP Carey Inc5,194,7530,9861,720,711,62Real Estate Mgmnt/Servic
OMIOwens & Minor Inc3,0214,344,6644,1115,1111,58Distribution/Wholesale
WASHWashington Trust Bancorp Inc3,63,094,6548,1212,3611,56Commer Banks-Eastern US
AWRAmerican States Water Co3,174,9236,0848,9216,9511,55Water
CMSCMS Energy Corp4,0644,9614,9937,2916,2911,41Electric-Integrated
UNTNUnited Tennessee Bankshares Inc3,922,1319,5123,138,1211,12S&L/Thrifts-Southern US
FKYSFirst Keystone Corp4,12,598,8153,3113,0511,04Commer Banks-Eastern US
MGEEMGE Energy Inc3,051,966,1457,4919,6911,02Electric-Integrated
PNYPiedmont Natural Gas Co Inc3,863,758,8773,0119,9410,86Gas-Distribution
CPKChesapeake Utilities Corp3,183,9541,0247,2416,3810,7Gas-Distribution
UNSUNS Energy Corp4,0914,0887,2556,3818,4810,68Electric-Integrated
XELXcel Energy Inc3,923,218,160,115,0610,48Electric-Integrated
AEPAmerican Electric Power Co Inc4,333,86,756,8914,510,32Electric-Integrated
FLICFirst of Long Island Corp/The3,3910,39740,5911,710,26Commer Banks-Eastern US
DIMCDimeco Inc3,534,423,5343,4811,6110,21Commer Banks-Eastern US
SCGSCANA Corp4,132,513,0464,615,410,13Electric-Integrated
LGLaclede Group Inc/The4,112,624,5756,815,4510,12Gas-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

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  1. says

    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?

  2. Chuck says

    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!


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