I ncome investors like the predictability of a dividend stock -- most of the time, they can count on a steady yield regardless of the stock's price performance.
So, if the dividend stock outperforms the market, it's like getting a bonus.
These six stocks from Tuesday's Dividend Leaders list are beating the market both in terms of yield and stock action.
Reynolds American ( RAI ), which is building a flat base with a potential 49.66 buy point, has rallied more than 40% this year while the S&P 500 is flat. The Camel cigarette maker's annualized yield of 3.2% also tops the S&P 500's average 2.12% payout.
McDonald's ( MCD ), up about 25% for the year, recently reclaimed a 114.06 buy point of a three-week-tight pattern. It's also well extended from a flat base cleared in early October. The burger chain, which has raised its dividend every year since it first payout in 1976, offers a 3.1% yield.
Maxim Integrated Products ( MXIM ), up nearly 20% year to date, is crafting a flat base. The chipmaker's sales have slowed the past five quarters, but earnings growth resumed in fiscal Q1 ended in September. Maxim pays a quarterly dividend of 40 cents a share, or $1.20 for the year, for a 3.2% annualized yield.
Altria Group ( MO ) is also working on the bottom of what is so far shaping up to be a flat base. Shares of the Marlboro maker have advanced about 17% this year. Tobacco companies tend to pay high dividends, and Altria is no exception, with an annual payout of 3.9%.
Paychex ( PAYX ) has gained around 15% YTD and has pulled back near a 51.82 buy point and its 10-week moving average. The provider of payroll and related services offers a 3.2% yield. Analysts expect EPS to rise 9% on 7% higher sales when it reports Dec. 22.
Lockheed Martin (LMT), up about 12% this year, has also pulled back to its 10-week line and a recent buy point at 213.44. The F-35 jet maker pays an annual dividend of 3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.