14 Attractive Dividend Stocks With Yields Over 3%

We screened the Dividend Growth index for companies with wide economic moats, meaning that we think they have advantages that will allow them fend off competitors and remain profitable for at least 20 years. 

We also insisted the stocks carry fair value uncertainty ratings of medium or low, ensuring that we zeroed in on companies whose fair value estimates our analysts were most confident in.

Below are 14 top dividend stocks with yields over 3 percent. We hope you will find some value pick in them.

Stocks With Recent Dividend Growth In The Past Week

A Compilation Of The Best Tobacco Stocks

The tobacco industry has delivered solid returns over the long run despite facing plenty of challenges along the way. 

Between litigation, regulation, taxation, health concerns, and changing consumer preferences, the world's largest producers and marketers of cigarettes and other tobacco products have had to change gears in order to adapt to the new environment in the industry.

However, many tobacco stocks have outperformed the S&P 500 over the past year due to the popularity of high-yielding dividend stocks in a low interest rate environment. 

Meanwhile, the profitability of many tobacco companies improved as they used higher prices, cost cutting measures, and buybacks to offset weaker sales. Therefore, investors should be familiar with three of the top names in the industry.

Attached I've compiled some of the best names from the industry. For sure, there is not much competition. Market consolidatioin and strong market entry barriers are have created such a low competitor branch.

Here is my compilation of the best tobacco stocks...

15 Long-Term Dividend Growth Stocks That Could Reach A 10% Dividend Yield Soon

Achieving a double-digit dividend yield isn't a complicated process, however two key ingredients are essential. First, you'll need to identify and invest in high quality businesses that will grow their dividends for the foreseeable future.

Ideally you're looking for dividend growth of at least 5% per year. Then, you'll need significant patience. A 4% yield won't grow into a 10% yield overnight. You're most likely looking at a 10-15-year holding period to see a 4% or 5% yield transform into double-digits. If you get panicked out of the market at the first sign of volatility, this strategy will be much harder to execute.

However with a little bit of research into quality dividend growth stocks and a buy-and-hold strategy, you'll have every chance of being able to enjoy sizeable returns in the future.

However, what if there was an investing strategy that allowed you to enjoy yields as high as 10%, 15% or even 20%, without taking on any excessive risk or investing in high yielding stocks that could possibly see their dividends cut? The good news is that such a strategy exists.

Welcome to the world of dividend growth investing. Attached you will find a couple of stocks that might achieve a 10% dividend yield in the near future. 

Each of the stocks I show you have a dividend yield of at least 2% while earnings are expected to grow by more than 10 percent for the next five years. In addition, every stock has managed to grow dividends over a period of more than 10 years without a break.

These are the results...

32 Of 60 S&P 500 Dogs Have Cash Margins To Cover Dividends

“Dogs of the Dow” is a popular investment strategy. There are thousands other or similar strategies out there trying to beat the market by finding undervalued stocks without deep research.

The approach is simple and easy. On seeking alpha, there are many writers creating great screens with attractive stocks. 

Attached you will find a list of dogs from the S&P500. A dog by definition from the article is a stock from the S&P 500 with a dividend yield higher than their peers and lower than their historical average.

High yields also under pressure of dividend cuts. In order to eliminate those risks, the author created the safety margin rule. This ratio shows how much of the dividend yield is covered by the free cash flow yield. A ratio below 100% tells us that the dividend is paid with free cash, generated by operating activities.

Check out the dogs with high safety margins here...

7 Safe And Cheap High Yielding Dividend Stocks

The Brexit vote pushed U.S. Treasury rates to record lows and the S&P 500 Index to new record highs, creating a sort of dash for stocks with a modicum of safety.

It's hard to discover nearly safe stocks. The truth is that you will not find any safeness at the stock market. 

There are companies with a more risky growth strategy and companies with lower risk exposure.

Today I will share a couple of stocks with high dividends that might offer a bit safeness for you.

Here are the results...

5 Great Dividend Grower For Retirement Investors

A good retirement portfolio is diversified and dividend-focused. Diversification is important financial defense, but dividends are your financial offense.

They compound on themselves because companies that pay dividends have an implied agreement with their shareholders that they’ll continue bumping them up. Not all do, of course – but I’ve identified five dividend growth stocks that you can bank on.

Today they yield an average 3.6% and each has not only a strong history of increasing dividends but also strong dividend coverage – which means their payouts (and stock prices) are likely to keep growing for the foreseeable future.

Now let’s get into these five dividend growers…

9 Ultra Conservative Stocks Seniors And Retirees Should Consider For Their Yield

Seniors in their 70s who've crossed the proverbial retirement "finish line" may have thought their hard work had ended, but that may be far from the truth.

Seniors are living longer, fuller lives than ever, which means there's a growing chance they'll need to continue building upon their nest egg and investing for their future.

As you might imagine, the idea of investing in the stock market may not be appetizing to some folks in their 70s, especially with the Great Recession, and the subsequent 50%+ drop in all three U.S. stock indexes, still fresh in their minds.

But historically, the stock market is the greatest creator of wealth, averaging a return of 7% annually. These figures are hard to ignore when trying to make your nest egg stretch for as long as possible.

When seniors reach their golden years, they're rightfully focused on generating income while looking to minimize their risk of capital loss. 

Yet within the stock market there are a handful of companies that appear to perfectly fit what retirees in their 70s are likely looking for in an investment.

Here are 9 potentially perfect stocks for retirees in their 70s to consider buying...

20 Attactive Low Volatility Consumer Goods Stocks

When I'm thinking about how to arrange a portfolio, I think there is a uniquely human aspect to the process.

The ideal dividend portfolio depends on the risk factors an investor feels comfortable accepting. 

After the year is over, any investor can easily see which companies delivered the best returns, but when the period is starting, the goal is for an investor is to be carrying a portfolio that meets their individual objectives.

This piece is going to focus on the dividend champions of the consumer staples sector.

Given the relatively high valuation of the market, I believe it is more rational to focus investments on sectors with less volatility in their ability to generate sales.

Attached you will find a compilation of stocks from the consumer goods sector with solid yields, modest growth predictions and low beta ratios.

These are my favorites...

20 Top Picks From My Safe Haven High-Yield Large Cap Screen

Every month, I run a screen to find value stocks with high dividends. Well, it's not easy to find a bargain and if you found a stock that looks like one, you could also wait years until the market detects the value.

Today I like to share a list of 20 stocks with a low beta ratio and yields over 2.77%. You will find the complete list at the end of this article. Below is also a detail view of the top yielding stocks. I hope you will find some values in it.

In addition to the screening criteria, each stock from the screen had a positive sales growth over the past five years while earnings are expected to grow by more than 5% for the next five years.

The debt-to-equity ratio is also under one and the market capitalization over 10 billion USD.

Here are the top yielding results...

12 Solid Dividend Stock Bets For High Income Investors

Dividend-paying stocks have been bid up in recent years as investors seek alternatives to low bond yields. 

But even factoring in the higher valuations, at least one research firm insists that certain dividend-paying stocks still make sense considering the alternatives and the likelihood that monetary policies at various central banks will keep a lid on interest rates for a while. 

Stocks with strength in their balance sheets and the reliability of their dividends, could be seen as more risk-free than debt is.

Attached I've compiled a few stocks that offer a high degree of dividend safeness with room to grow them over time.

Each of the results offer a dividend yield over 3 percent.

Here are the results...

A Portfolio Of Stocks With A High Domestic Sales Share

A Portfolio Of Stocks With A High Domestic Sales Share (click to enlarge),
Source: Goldman Sach, MarketWatch

Which Stocks To Buy In Market Corrections - 40 Best Dividend Growth Ideas Now!

When the market falls, it tends to drag everything down -- good or bad companies. I think that companies that have increased their dividends by 10% or higher in the last 10-years should be considered good companies. 

One way to combat the market downturn is to buy high growth dividend-growth companies that are fairly valued or undervalued. 

These companies are expected to grow earnings per share at a rate higher than 5% in the foreseeable future and have a history of increasing dividends with payout ratios of less than 60%. 

In addition, I like to invest into low leveraged companies. If rates rise or money is needed for investments, the company doesn’t need to raise capital. It's also a hedge for rising dividends.

I also look for stocks with a midcap market valuation or higher. I love the diversification and developed status of those companies.

63 stocks fulfilled my criteria. I like to show you only the 20 best yielding. Half of them have a beta higher than the market. They seem to be more risky.

For safe heaven investors, I also attached a list of the 20 best yielding stocks with a beta below one. Hope you have some fun by discovering the lists. If you like my work, please subscribe to my free newsletter by leaving your email in the right box above. Thank you for reading. 

These are the results...

40 Cheapest Dividend Growth Stocks By P/E And PEG

Value investors have a strong focus on stocks with a low valuation compared to its expected earnings. A very popular tool for investors to identify an undervaluation is the P/E ratio.

The P/E ratio often looks cheap but they are cheap for a reason. Mostly a dying operating business is responsible for the low P/E. On the other side, a high P/E could show that we have to deal with a high-growth company.

This general problem could be solved with the PEG ratio. By definition, it describes the value compared to its growth or Price-Earnings-To-Growth Ratio.

Definitions

The P/E ratio is simply: Price / Earnings
Essentially, this tells you how much an investor is willing to pay for each unit (year) of earnings. If a stock is trading at a P/E ratio of 30, it is said to be trading at 30x times its annual earnings.

In general, the lower the P/E ratio the better. A common threshold for many investors is a P/E of 20 or less. (For the record, at the time of this writing, the S&P 500 Index was trading at a P/E (using F1 Estimates) of 15.33.)

A PEG ratio is the: P/E Ratio divided by the Growth Rate

Conventional wisdom says a value of 1 or less is considered good (at par or undervalued to its growth rate), while a value of greater than 1, in general, is not as good (overvalued to its growth rate).
Many believe the PEG ratio tells a more complete story than just the P/E ratio. (The S&P at the time of this writing had a PEG ratio of 1.93.)

Comparison

Let's take a look at both of these in action.
For example: a company with a P/E Ratio of 25 and a Growth Rate of 20% would have a PEG ratio of 1.25 (25 / 20= 1.25).

While a company with a P/E Ratio of 40 and a Growth Rate of 50% would have a PEG Ratio of 0.80 (40 / 50= 0.80).

Traditionally, investors would look at the stock with the lower P/E ratio and deem it a bargain (undervalued). But looking at it closer, you can see it doesn't have the growth rate to justify its P/E.

The stock with the P/E of 40, however, is actually the better bargain since its PEG ratio is lower (0.80) and is trading at a discount to its growth rate.

In other words, the lower the PEG ratio, the better the value. That's because the investor would be paying less for each unit of earnings growth.

So which one is better?

They both have their usefulness. I do like how the PEG positions the P/E ratio in relation to its growth rate to put everything into perspective.

Quite frankly, I use both, so I'm going to say it's a tie. Plus, you couldn't even create the PEG ratio without the P/E.


Attached you can find the 20 cheapest dividend growers by PEG and P/E. The results include only stocks with a constant dividend growth history of at least 10 years. They are classical Dividend Achievers.

Here are the results:

13 High-Yield Large Caps From The S&P 500 Stock Index

Despite all the hand-wringing over the beginning of the Federal Reserve interest rate increases, the fact of the matter is they will start small, stay small and happen at a very slow pace. 

In fact, most Wall Street strategists predict that by the end of 2017, the fed funds rate will only be 2% at the very most. It could be even lower if economic growth slows down between now and then. 

With that scenario very likely, solid stocks with a big yield will remain in demand. I screened the S&P 500 index for large cap, blue chip stocks that paid a 5% dividend. 

As of now, 13 stocks pay such a high yield of which 5 have also a low forward P/E and 8 a buy or better rating.

A major worry for many yield-hungry investors is that when the Federal Reserve begins raising the federal funds rate, market prices for any yield-producing investment can come under pressure. 

When interest rates rise, the value of an existing bond or preferred stock must adjust itself lower so it has the same yield as a similarly rated new security.

A good advice from me is to avoid stocks with high debt leverage like REITs. Those stocks are living from an interest margin that could be destroyed.

Here are the large cap high-yields from the S&P 500...

20 Best Yielding Defensive Consumer Dividend Stocks For Long-Term Investors

Consumer Staples are widely appealed to by income investors because they are represented by some of the great blue chip stocks in the market. Companies like Altria, Coca-Cola, Colgate-Palmolive and Procter & Gamble have been paying reliable and growing dividends for the last 40+ years.

These types of companies tend to have high-quality balance sheets and are more resistant to downturns as they produce everyday products that are needed by people regardless of economic conditions. The perception of staples being a safe haven leads to many companies in the sector trading at rich valuations, which can make it difficult to find attractive entry points for new investors. In comparison with the previous sectors that have been highlighted, the consumer staples still have relatively few companies trading below fair value.

Today I would like to introduce some of the best dividend growth stocks from the defensive consumer goods sector.

Attached is a list of the 20 best yielding stocks from the consumer goods sector with a market cap over 2 billion and a dividend growth history of more than 10 consecutive years.

Check out these 10 names...

10 Potential Dividend Champs With An Impressing Outperformance

It's hard to find good managed stocks that work with backwind and develop their industy as a leader. Out there a several stocks with an impressive performance in the past. They lead their industy and have a major footprint and big market share against their competition. I'm talking about Apple or Nike. Those stocks are an expression of the working American capitalism.

Well, I look for rising earnings and cash flow because without those variables, dividends can't grow long term. I also look for low payout ratios and reasonable debt loads. Without further ado, here are my 10 potential Dividend Champions listed in order of current dividend growth streaks. What do you think? Do you agree with me in some of the results?

Here are the stocks....

10 Top Money Returning Dividend Stocks From The Russell 3000

Dividend growth investors look for stocks with regular rising dividends as well as high growth too. 

Growth and income make a winning combination that in the best dividend stocks leads to life-changing, long-term gains. 

In order to find the best of the best, I looked for stocks in the Russell 3000 Index that have a current dividend yield of at least 2% and have raised their payouts by at least 10% annually over the past 10 years.

In addition, to incorporate the need for growth, I took the qualifying stocks and ranked them by their total return since a decade ago. Below are the top yielding results in detail and attached a full list, sorted by yield.

You also may like my articles to Dogs of the Dow. It's a wonderful and popular investment strategy.

Here are my results:

These 7 Dividend Cash Cows Produce Money Like Milk (Part I)

Investing is great. You can spend money on stocks and if your bet goes wild you will make a lot of money. That's a great dream for all of us and I can tell you that it's possible to become an investment Pro.

I'm a guy who looks steadily at stocks and try to find attractive investment stories and cheap stocks in order to make a good return.

I'm not short term focused; plan to hold most of my stocks over years and decades. Due to my long investment horizon, I need good companies that grow over time their business, pay me good dividends, and grow dividends as well.

But the most important question is that the corporate can grow without taking new investors on board. Those actions will grow outstanding shares in general and bring pressure on earnings per share growth.

I look for companies have generated high free cash flows, companies with a business model that don't need much money to keep their operational business alive.

I've tried to find some new ideas with an old screener who has a quick option; it’s called the reinvestment rate. I don't know how they calculate this ratio but when I sort the list of large with high margins by this ratio, companies with low investment spending on their operational cash flow come first.

Big Money Roll In Your Pocket

I talk about companies with a high scalable business, stocks with the lowest need of capital expenditures. First you might think about Facebook or all the great tobacco companies. For sure those shares generate big free cash flows.

But there are much more companies, I talk about technology stocks and money platforms. The key is here the platform business. Each new customer doesn't cause new costs and bring free cash into the corporate. That's a great idea of making money.

The only item to care about is market entry barriers. Can competitors easily enter and push down margins? If yes, keep your fingers away of buy only at low multiples.

Below are seven detailed stocks. I will follow up with 8 additional stocks. That's only a selection; there are much more companies available. Some of them pay no dividends other a low one but dividend is not the key.

Look at Part II here: These 8 Dividend Stocks Bubbling Cash Like Lava Gold Mines (Part II)

Most of the presented results come from the tech and financial space.

7 Dividend Stocks with strong free cashflows are...

6 Top Long-Term Dividend Growth Stocks With A 20% Return On Investment

The markets hit new highs and valuations grow steadily. I notice that the fight for real and high quality assets is very hard. Today, investors pay 30 times for a solid and slow growing free cash flow. That's crazy in my view because you cannot make a good return with such a high price; it's a 3.3 percent initial yield.

Bonds yielding much lower at a yield of 2.5 for US Bonds to 1.5 percent or less for the German Government Paper. That's a damn low ratio.

But investors like you and me need a good yield to head off market fluctuations and to compensate inflation pressure, but most of the high-quality dividend growth stocks yielding below 3 percent.

My goal for today is to present you those stocks that pay more than the expected inflation rate and have a return on investment ratio above 20 percent. In addition, they should grow at a pace of 5 percent or more over the next five years. 

Below are those 6 results that have matched the above mentioned criteria and hiked dividends for 10 years or more. The results are very limited but can give you a good idea about the current market situation.

6 top long-term dividend growth stocks...