The Best Dividend Stocks List features Dividend.com’s top rated dividend stocks, geared toward traditional long-term, buy-and-hold investors. All stocks on this list hold Dividend.com DARS™ Ratings of 3.5 or higher, thus earning “Recommended” ratings as the best dividend stocks to buy right now.
|Stock Symbol||Company Name||DARS™ Rating||Current Yield||Current Price||Price Reco.||Date Reco.||Ex-Div Date||Pay Date|
|JNJ||Johnson & Johnson||3.9||2.55%||$132.02||$112.08||05/02/16||02/26/18||03/13/18|
|UPS||United Parcel Service||3.9||3.45%||$105.61||$103.65||05/11/16||02/16/18||03/07/18|
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* Stock Price shown is previous day’s closing price.
** Recommended date/price reflects the stock’s price on the day the stock was added to the list.
The stocks featured on our Best Dividend Stocks List are geared toward traditional long-term investors looking to boost their current income stream, while at the same time maintaining a relatively low risk profile. The stocks above have been hand picked by Dividend.com staff, which utilizes proprietary research and analysis to determine the best and safest dividend stocks to buy with “new money.”
Our list contains compelling dividend paying stocks that have been thoroughly vetted and feature exceptional ratings via Dividend.com’s strict DARS™ criteria.
Our list is not meant to represent a complete portfolio, nor is every stock on this list appropriate for all investors. We highly encourage investors to do their own research before making any investment decision.
When we remove a name from our “Recommended” dividend stocks list, that downgrade generally means that we no longer recommend adding to existing positions, or establishing new positions in that stock. More importantly, a removal from our list is almost never a “Sell” call.
On very rare occasions we may issue “Sell” calls if we feel the situation dictates. We also recommend investors to develop their own sell strategies to limit losses.
When a stock is added to our list, that means the stock’s ratings have been upgraded from “Neutral” to “Recommended.” This change is also known as a “Buy” call.
Dividend.com was founded to make dividend investing easier for long-term and income-seeking investors. Much of our dividend research is compiled in our proprietary rating system, known as DARS™ (Dividend Advantage Rating System). Below is a detailed look at how we rate dividend stocks.
Each DARS rating is comprised of the following five factors:
The relative strength of a dividend stock indicates whether the stock is uptrending or not. One major determining factor in this rating is whether the stock is trading above its 50- and 200-day moving averages.
Overall Yield Attractiveness
This rating reflects our personal opinion about a stock’s ability to continue to make its current dividend payout. High dividend yields (usually over 10%) should be considered extremely risky, while low dividend yields (1% or less) are simply not very beneficial to long-term investors.
A stock’s dividend reliability is determined by the number of years the company has been paying dividends, along with our opinion on how likely current payout levels are to continue.
A stock’s Dividend Uptrend rating is dependent on the company’s history of regularly increasing its dividends. Other factors also weigh into this rating, such as our opinion on the likelihood of future dividend raises.
A stock’s Earnings Growth rating indicates a company’s projected earnings for at least the next four quarters.
Each dividend-paying stock receives a rating of one to five stars for each of the five DARS™ factors outlined above. Stocks rated by Dividend.com all fall into one of four categories, based on their overall DARS™ Rating, which is an average of the five factors:
Highly Recommended (3.75 to 5)
A Highly Recommended dividend stock is considered an outstanding investment (also known as a “Strong Buy”). Only stocks achieving DARS™ Ratings of 3.75 or above qualify for this prestigious distinction.
Recommended (3.5 to 3.7)
A Recommended dividend stock is considered a good dividend-paying stock to purchase at current levels (also known as a “Buy”). Only stocks achieving DARS™ Ratings of 3.5 to 3.7 stars qualify for this distinction.
Neutral (2.5 to 3.4)
A Neutral rating means a stock is considered an average investment at current levels (also known as a “Hold”). Stocks with DARS™ Ratings of 2.5 to 3.4 stars qualify for this grouping.
Avoid for Now (0.0 to 2.4)
An Avoid rating means a stock is not investable at the current time (also known as a “Sell”). Stocks with DARS™ Ratings lower than 2.5 stars are given this dubious distinction.