64 Best Dividend Stocks for 2014
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64 Best Dividend Stocks for 2014
We start the new year with our annual list of the best dividend stocks for 2014. This screen contains 64 names across a variety of industries. This is a collection of stocks chosen primarily for their dividend yield, excellent dividend growth rate (5 year average) as well as the likelihood that the dividend will be sustained or even enhanced going forward as evidenced by the high dividend coverage. While valuation is not necessarily part of the screen, I am including the key ratios for your research. It is assumed that the primary motivation of a dividend investor is to generate income over long term and capital gains is a secondary consideration. We have restricted the selection to stocks with market capitalization over $30 million.
To aid in planning your portfolio, I am breaking down this list by sector. Typically, a company paying a great dividend with a history of growing it tends to run a fundamentally strong business. These businesses are great purchases at the right price, so even if the valuation today may be a little rich, it is worthwhile to keep these names in your watch list.
Sector: Consumer Discretionary
Covering retail, household durables, automobiles and auto components, and textile/apparel industries
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| FLEXSTEEL INDUSTRIES INC | FLXS | 2.31% | 2.90% | 3.2 | 14.3 | 1.21 | – |
| V.F. CORP | VFC | 1.80% | 48.07% | 2.9 | 23.1 | 4.7 | 1.99 |
| BORGWARNER INC | BWA | 0.90% | 35.37% | 10.4 | 21.7 | 3.76 | 1.31 |
| FORD MOTOR CO | F | 3.10% | 20.11% | 3.3 | 11.5 | 3.1 | 0.98 |
| GAP INC. (THE) | GPS | 2.09% | 18.66% | 4 | 13.7 | 5.81 | 1.01 |
| MACY’S INC | M | 1.81% | 13.54% | 3.8 | 15.6 | 3.74 | 1.31 |
| TIFFANY & CO. | TIF | 1.56% | 14.87% | 2.7 | 24.6 | 3.99 | 2.02 |
| CSS INDUSTRIES INC. | CSS | 2.21% | 0.00% | 3.3 | 13.6 | 1.01 | – |
Sector: Consumer Staples
Covering food products and department stores
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| INGREDION INC | INGR | 2.52% | 24.57% | 3.3 | 13.2 | 2.08 | 2.71 |
| WAL-MART STORES INC | WMT | 2.43% | 14.63% | 2.8 | 15 | 3.42 | 1.73 |
Sector: Energy
Includes energy equipment and services companies. None of the energy producers made the list.
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| TRANSOCEAN LTD | RIG | 4.72% | 90.20% | 2.6 | 10.8 | 1.05 | 0.54 |
| HELMERICH & PAYNE INC. | HP | 2.99% | 65.72% | 3.7 | 12.7 | 2.01 | 1.68 |
| NOBLE CORP | NE | 2.84% | 44.27% | 3.8 | 12.4 | 1.1 | 0.49 |
Sector: Financials
Covers commercial banks, insurance, thrifts and financial services companies
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| ACCESS NATIONAL CORP | ANCX | 3.01% | 61.54% | 3.8 | 9.5 | 1.57 | – |
| NICHOLAS FINANCIAL INC | NICK | 3.05% | 51.27% | 3.3 | 9.9 | 1.42 | – |
| PROVIDENT FINANCIAL HOLDINGS INC | PROV | 2.76% | 14.87% | 5.1 | 8.4 | 0.94 | – |
| ACE LTD | ACE | 2.60% | 18.25% | 4.8 | 9.6 | 1.17 | – |
| HORACE MANN EDUCATORS CORPORATION | HMN | 2.65% | 30.01% | 3.4 | 11.3 | 1.08 | 1.4 |
| AFLAC INC | AFL | 2.31% | 9.04% | 4.6 | 9.8 | 2.04 | 7.84 |
| TRAVELERS COMPANIES INC (THE) | TRV | 2.32% | 10.76% | 4 | 11.2 | 1.27 | 1.34 |
| AXIS CAPITAL HOLDINGS LTD | AXS | 2.36% | 7.42% | 4.2 | 10.8 | 0.99 | 2.16 |
| MICROFINANCIAL INC | MFI | 3.25% | 6.96% | 2.6 | 13.4 | 1.43 | – |
| PARTNERRE LTD. | PRE | 2.56% | 6.83% | 2.9 | 13.4 | 0.81 | -26.27 |
| BAR HARBOR BANKSHARES | BHB | 3.28% | 4.24% | 2.6 | – | 1.24 | – |
| RIVER VALLEY BANCORP. | RIVR | 3.29% | 0.00% | 3.8 | – | 1.33 | – |
| TOWNEBANK | TOWN | 2.60% | 5.18% | 3.1 | 13.3 | 1.09 | – |
| CAMDEN NATIONAL CORP | CAC | 2.72% | 1.55% | 2.7 | 13.5 | 1.31 | – |
| JPMORGAN CHASE & CO | JPM | 2.63% | 0.00% | 3.1 | 13 | 1.11 | 2.22 |
Sector: Health Care
Represents pharmaceuticals, health care service providers and health care equipment and supplies
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| QUEST DIAGNOSTICS INC | DGX | 2.23% | 24.57% | 4.3 | 10.5 | 2.03 | 1.23 |
| SPAN-AMERICA MEDICAL SYSTEMS INC | SPAN | 2.62% | 9.24% | 3.2 | – | 2.07 | – |
| COVIDIEN PLC | COV | 1.86% | 14.87% | 3.1 | 20.4 | 3.37 | 2.27 |
Sector: Industrials
A wide range of industries from machinery, aerospace, road and rail, electrical, building products, and construction and engineering
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| AMERICAN RAILCAR INDUSTRIES INC | ARII | 2.29% | 52.81% | 4.1 | 10.7 | 2.25 | – |
| DEERE & CO | DE | 2.28% | 12.74% | 4.5 | 9.9 | 3.26 | 1.23 |
| CUMMINS INC. | CMI | 1.84% | 28.99% | 3.4 | 18.1 | 3.57 | 1.86 |
| L-3 COMMUNICATIONS HOLDINGS INC | LLL | 2.08% | 12.89% | 3.9 | 12.3 | 1.63 | 5.91 |
| UNION PACIFIC CORP | UNP | 1.88% | 23.95% | 3.1 | 18.6 | 3.73 | 1.32 |
| CSX CORP | CSX | 2.11% | 15.39% | 3.2 | 15.4 | 2.93 | 1.46 |
| RAYTHEON CO. | RTN | 2.45% | 14.46% | 2.7 | 15.2 | 3.25 | 1.59 |
| NORFOLK SOUTHERN CORP | NSC | 2.31% | 10.20% | 2.8 | 15.8 | 2.71 | 1.38 |
| ROCKWELL AUTOMATION INC. | ROK | 2.02% | 14.87% | 2.6 | 22 | 6.18 | 1.83 |
| PARKER-HANNIFIN CORP | PH | 1.43% | 12.47% | 3.5 | 20.4 | 3.08 | 2.87 |
| C.H. ROBINSON WORLDWIDE INC. | CHRW | 2.44% | 7.84% | 2.6 | 16 | 8.86 | 1.65 |
| DOVER CORP | DOV | 1.61% | 8.45% | 3.8 | 17.2 | 3 | 1.32 |
| CRANE CO. | CR | 1.79% | 8.45% | 3.2 | 18.5 | 3.55 | – |
| KBR INC | KBR | 1.00% | 9.86% | 4.9 | 20.2 | 1.74 | 1.36 |
| GORMAN-RUPP CO (THE) | GRC | 1.38% | 11.94% | 3.1 | 33.3 | 3.38 | – |
| KENNAMETAL INC. | KMT | 1.42% | 8.45% | 3.6 | 21.1 | 2.15 | 4.16 |
| LENNOX INTERNATIONAL INC. | LII | 1.11% | 11.38% | 3.7 | 25.7 | 8.93 | 1.15 |
| GRACO INC. | GGG | 1.43% | 8.25% | 3.2 | 23.5 | 7.81 | 1.53 |
| HUBBELL INC | HUB/B | 1.72% | 7.39% | 2.9 | 22 | 3.83 | 2.11 |
| KNIGHT TRANSPORTATION INC | KNX | 1.24% | 8.45% | 3.5 | 23.4 | 2.92 | 1.93 |
| ROBERT HALF INTERNATIONAL INC. | RHI | 1.59% | 7.78% | 2.8 | 23.2 | 6.21 | 1.56 |
Sector: Information Technology and Telecommunications
Includes telecom, communication equipment, software, IT services, electronic equipment and components, and computer hardware
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| WESTERN UNION CO | WU | 3.05% | 65.72% | 3 | 10.9 | 8.61 | 1.06 |
| SEAGATE TECHNOLOGY PLC | STX | 2.94% | 30.18% | 2.9 | 13.2 | 5.71 | 4.97 |
| APPLE INC | AAPL | 2.28% | 189% | 3.4 | 13.7 | 3.9 | 0.95 |
| MICROSOFT CORP | MSFT | 3.20% | 16.59% | 2.6 | 13.3 | 3.58 | 1.81 |
| ACCENTURE PLC | ACN | 2.29% | 30.05% | 2.9 | 16.3 | 10.42 | 1.35 |
| INTERNATIONAL BUSINESS MACHINES CORP | IBM | 2.06% | 13.70% | 3.9 | 12.9 | 10.06 | 1.2 |
| CORNING INC | GLW | 2.22% | 14.87% | 3.2 | 14.9 | 1.2 | 0.83 |
| HARRIS CORP | HRS | 2.47% | 16.00% | 2.7 | 16.4 | 4.45 | 11.56 |
| TE CONNECTIVITY LTD | TEL | 1.80% | 10.76% | 3.1 | 18.4 | 2.73 | 1.44 |
Sector: Materials
Includes chemicals and paper/forest products
| Company Name | Symbol | Dividend Yield | Dividend Growth Rate | Dividend Coverage | P/E | Price/Book | PEG |
|---|---|---|---|---|---|---|---|
| AGRIUM INC. | AGU | 3.28% | 93.71% | 3.5 | 10.5 | 1.85 | 5.76 |
| INNOSPEC INC | IOSP | 2.21% | 58.49% | 5.1 | 17.6 | 2.86 | – |
| SCHWEITZER-MAUDUIT INTL INC | SWM | 3.11% | 36.85% | 2.8 | 13.3 | 2.56 | – |
One of the key feature of the screen is that we picked the companies that exhibit desirable attributes of a dividend stock among the best in its industry. So for example, while it might be tempting to find the top highest yielding stocks in the entire market, it is not always a great idea if you want to build a well diversified and lightly correlated portfolio. Besides, abnormally high yields often are a result of some underlying problem in the business and may not be sustainable. Our screen looks for the highest yielding stocks in their industry as well as stocks with highest dividend coverage in its industry and than we choose the stocks that pass both these filters. As usual, use these for ideas and consider the rest of your portfolio as well as your typical holding periods and valuations before deciding to purchase any of these stocks.
Hope you enjoy and are able to find a few solid ideas for your portfolio in 2014. As usual, take this screen as a starting point and do your own due diligence.
The post 64 Best Dividend Stocks for 2014 by Shailesh Kumar appeared first on Value Stock Guide.