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Setting Up Dividend Investing Goals for 2013

Buying into four main stocks headed towards retirement plans

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The types of dividend stocks I plan to add in 2013 include:

Becton, Dickinson (NYSE:BDX), a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company has raised distributions for 41 years in a row. Over the past decade Becton Dickinson has managed to boost dividends by 15.70% per year. The stock is trading at 14.10 times earnings and yields 2.30%. I plan on initiating a position in this stock somewhere in first quarter of 2013, as long as it trades below $79.20 per share. Check my analysis for more details.

McDonald’s (NYSE:MCD) franchises and operates McDonald’s restaurants in the global restaurant industry. The company has raised distributions for 36 years in a row. Over the past decade McDonald’s has managed to boost dividends by 27.40% per year. The stock is trading at 17 times earnings and yields 3.40%. This is the cheapest valuation for this global blue chip that I have ever seen, and I think that the stock has been beaten up unjustifiably. Check my analysis for more details.

Wal-Mart (NYSE:WMT) operates retail stores in various formats worldwide. The company has raised distributions for 38 years in a row. Over the past decade Wal-Mart Stores has managed to boost dividends by 17.90% per year. The stock is trading at a 14.10 times earnings and yields 2.30%. Check my analysis for more details. The company was attractively valued for a brief period in 2011 – 2012. If dividends increase by 8% in March 2013 however, the current prices around $69 per share would make it attractively priced for me.

YUM! Brands (NYSE:YUM), together with its subsidiaries, operates quick service restaurants in the United States and internationally. The company has raised distributions for 8 years in a row. Over the past five years YUM! Brands has managed to boost dividends by 31.30% per year. The stock is trading at 18.80 times earnings and yields 2.10%. I like the recent weakness in the stock, which I consider to be short-term in nature. If the stock falls further to $54 per share, I plan on adding to my position in it. If the company’s stock price remains relatively flat in 2013, but dividends increase by approximately 15%, I might consider adding to my position in the stock.

This of course is just a sample of the types of companies I plan to add to in 2013, as I will probably do somewhere between 24 – 36 purchases.

Full Disclosure: Long MCD, WMT, YUM


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/dividend-investing-goals-for-2013-yum-mcd-wmt-bdx/.

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