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20 Best Dividend Stocks for 2013 and Beyond

Consumer, healthcare and energy stocks for the long term

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Dividend investing is a long term process, where capital is invested upfront today, with the intention to receive dividends for many years to come. Dividends have historically represented approximately 40% of average annual total returns, which is why they are an important part of the investing decision.

The thing about dividend checks is that unlike capital gains, they are always positive. As long as the company you purchased is sound financially, it should be able to distribute cash in your brokerage account like clockwork every single quarter. As a result, it is no surprise that dividend stocks are getting a lot of attention from current and future retirees.

The most important decision for someone who wants to retire with dividend stocks is to actually get started. This means saving money consistently, and then investing it in the dividend stocks of their choice. In this article, I am going to outline a few dividend stocks which make very good candidates for a beginning income portfolio. In other words, if I were starting a portfolio tomorrow, I would include the following stocks.

 Consumer Staples

Clorox (NYSE:CLX),  which manufacturers and markets consumer and institutional products. The company has raised distributions for 35 years in a row. The stock trades at 17.60 times earnings and yields 3.50%. Check my analysis of the stock for more information.

Procter & Gamble (NYSE:PG) is focused on providing consumer packaged goods, which are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores. The company has raised distributions for 56 years in a row. The stock trades at 18.70 times earnings and yields 3.30%. Check my analysis of the stock for more information.

Colgate-Palmolive (NYSE:CL) is a consumer products company, which operates in over 200 countries and territories worldwide. The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. The company has raised distributions for 49 years in a row. The stock trades at 20.40 times earnings and yields 2.40%. Check my analysis of the stock for more information.

Kimberly-Clark (NYSE:KMB), is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers using advanced technologies in fibers, nonwovens and absorbency. The company has raised distributions for 40 years in a row. The stock trades at 17.50 times earnings and yields 3.50%. Check my analysis of the stock for more information.

Coca-Cola (NYSE:KO) is a beverage company, which owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. The company has raised distributions for 50 years in a row. The stock trades at 18.80 times earnings and yields 2.80%. Check my analysis of the stock for more information.

PepsiCo (NYSE:PEP) is a global food and beverage company. The company has raised distributions for 40 years in a row. The stock trades at 18.10 times earnings and yields 3.10%. Check my analysis of the stock for more information.

Walgreen (NYSE:WAG), operates a drugstore chain in the United States which provides its customers with access to consumer goods and services, pharmacy, and health and wellness services in communities across America. The company has raised distributions for 37 years in a row. The stock trades at 16.50 times earnings and yields 3%. Check my analysis of the stock for more information.

Wal-Mart (NYSE:WMT) operates retail stores in various formats around globally. The company has raised distributions for 38 years in a row. The stock trades at 13.90 times earnings and yields 2.30%. Check my analysis of the stock for more information.

Philip Morris (NYSE:PM), through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The company has raised distributions for five years in a row. The stock trades at 16.50 times earnings and yields 4.10%. Check my analysis of the stock for more information.

Consumer Discretionary

McDonald’s (NYSE:MCD) franchises and operates McDonald’s restaurants in 119 countries globally. The company has raised distributions for 36 years in a row. The stock trades at 16.50 times earnings and yields 3.50%. Check my analysis of the stock for more information.

Healthcare

Johnson & Johnson (NYSE:JNJ) is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The company has raised distributions for 50 years in a row. The stock trades at 14.20 times earnings and yields 3.50%. Check my analysis of the stock for more information.

Becton, Dickinson (NSE:BDX) is a global medical technology company engaged in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. The company has raised distributions for 41 years in a row. The stock trades at 13.80 times earnings and yields 2.50%. Check my analysis of the stock for more information.

Medtronic (NYSE:MDT) develops and manufactures a range of products and therapies providing a continuum of care to diagnose, prevent and monitor chronic conditions. The company has raised distributions for 35 years in a row. The stock trades at 12.40 times earnings and yields 2.50%. Check my analysis of the stock for more information.


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/best-dividend-stocks-for-2013-and-beyond-ko-pg-bdx-cvx-afl-pep/.

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