Top Dividends: The Best Dividend Stocks for 2012

By
A A A

2012′s rally has so far been very impressive, but a lot of investors are nervous it is running out of steam. If so, 2012 might see investors playing the same strategy so popular in 2011: Dividend stocks.

Indeed, dividend income was a popular choice in 2011, and the heavy demand for it sent stock prices up for more of the higher-yield companies.

So we were wondering what companies might shape up to be the best dividend stock picks for 2012. For ideas, we took a look at valuestockguide‘s list of dividend companies that all:

1. Pay cash dividends (“Companies that regularly pay cash dividends are typically strong companies”)
2. Have a history of consistently increasing dividends (They “generally have strong fiscal discipline and shareholder orientation”)
3. Have reasonable valuations (P/E ratio of 15 or below)
4. Have market caps above $30 million.

Business Section: Investing Ideas

Here are the top stocks on the list, sorted by dividend yield. Do you think these dividend stocks will offer a nice return in the year ahead?

 

1. International Shipholding Corp. (ISHEarningsAnalystsFinancials): Operates a fleet of the United States. Market cap of $165.35M. Dividend yield at 7.79%. Dividend growth rate (5 year average) at 43.1%. P/E (TTM) at 3.6.

 

2. American Greetings Corp. (AMEarningsAnalystsFinancials): Engages in the design, manufacture, and sale of greeting cards and other social expression products worldwide. Market cap of $555.26M. Dividend yield at 4.62%. Dividend growth rate (5 year average) at 13.4%. P/E (TTM) at 6.5.

 

3. Harris Corp. (HRSEarningsAnalystsFinancials): Operates as a communications and information technology company that serves government and commercial markets worldwide. Market cap of $4.60B. Dividend yield at 3.04%. Dividend growth rate (5 year average) at 20.55%. P/E (TTM) at 8.5.

 

4. L-3 Communications Holdings Inc. (LLLEarningsAnalystsFinancials): Provides command, control, communications, intelligence, surveillance, and reconnaissance systems; aircraft modernization and maintenance; and government services in the United States and internationally. Market cap of $6.98B. Dividend yield at 2.67%. Dividend growth rate (5 year average) at 19.14%. P/E (TTM) at 7.7. The stock has lost 8.65% over the last year.

 

5. St. Jude Medical Inc. (STJEarningsAnalystsFinancials): Develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. Market cap of $13.16B. Dividend yield at 2.41%. Dividend growth rate (5 year average) at 80.01%. P/E (TTM) at 12.7.

 

6. Microsoft Corporation (MSFTEarningsAnalystsFinancials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $245.26B. Dividend yield at 3.07%. Dividend growth rate (5 year average) at 14.87%.Current P/E at 10.59.

 

7. Southside Bancshares Inc. (SBSIEarningsAnalystsFinancials): Operates as the holding company for Southside Bank that provides financial products and services to individuals, businesses, municipal entities, and non-profit organizations. Market cap of $345.71M. Dividend yield at 3.28%. Dividend growth rate (5 year average) at 15.87%. P/E (TTM) at 9.6.

 

8. General Dynamics Corp. (GDEarningsAnalystsFinancials): Provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. Market cap of $25.05B. Dividend yield at 2.83%. Dividend growth rate (5 year average) at 15.36%. P/E (TTM) at 9.3.

 

9. Intel Corporation (INTCEarningsAnalystsFinancials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $136.11B. Dividend yield at 3.44%. Dividend growth rate (5 year average) at 16%. P/E (TTM) at 10.4.

 

10. Walgreen Co. (WAGEarningsAnalystsFinancials): Engages in the operation of a chain of drugstores in the United States. Market cap of $29.90B. Dividend yield at 2.55%. Dividend growth rate (5 year average) at 23.76%. P/E (TTM) at 12.

 

 

(List compiled by Eben Esterhuizen, CFA)

 

Use Kapitall’s Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

New to Kapitall?

1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlphaMotley FoolNasdaq and Twitter



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets


Kapitall

Kapitall

More from Kapitall:

Related Videos

The Diamond Cutter
The Diamond Cutter                  

Stocks

Referenced

Most Active by Volume

56,834,794
    $15.52 unch
47,736,761
  • $94.72 ▲ 0.83%
41,992,984
  • $2.47 ▲ 11.76%
40,893,734
  • $34.7901 ▲ 2.14%
39,324,803
  • $69.27 ▼ 0.19%
39,276,613
  • $7.28 ▲ 2.68%
39,084,483
  • $44.83 ▼ 0.01%
33,527,212
  • $26.02 ▲ 0.15%
As of 7/22/2014, 04:03 PM