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 appeared first on Value Stock Guide.

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