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Top 10 Dow Dividend Stocks for December

The best dividend stocks to round out 2014

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#9: Microsoft (MSFT)

dividends-microsoft-stock-msftDividend Yield: 3.1%
YTD Performance: +37%

Microsoft (MSFT) has made our list of top Dow dividend payers once again, and its yield has ticked up slightly since its last appearance. In late November, MSFT declared a quarterly dividend of 28 cents per share, an increase of 12% over its last payout.

The stock has traded lower by about 5% in the last two weeks, keeping its yield up at a respectable 3%. Even with the recent consolidation, MSFT is up 37% year-to-date, which beats the market by nine percentage points.

But how can that be possible with all of the bad press MSFT has received this year? PC sales are in a free-fall, the Windows Phone is virtually non-existent in the marketplace and no one seems to be excited about the new Windows 8.1 operating system.

On the other hand, the relative success of the new Xbox One gaming console should provide a nice boost in earnings in the coming quarters. And with a forward P/E of 13, you still can pick up MSFT at a valuation slightly below average, especially considering the 9% growth forecast.

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