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
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!