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The Best Dividend Stocks: What To Look For?

Published Fri, 28 Dec 2018 07:20:09 -0500 on Seeking Alpha

Introduction
My moniker is From Growth To Value. That has several implications. One of them is that I cover the whole spectrum: from growth stocks to value stocks. But it also means that I pick growth stocks that I think will become value stocks by holding them for very long periods.
Over the last year, I have been focusing more on growth stocks, for example, in my ongoing series Potential Multibaggers and Chinese Stocks To Buy Now. But this article is the first part of a new series in which I want to focus on DGI (dividend growth investing) again. For those who don't know, it is an investing philosophy in which you reinvest your dividends to buy more stocks with the dividends that you receive. Those dividends then generate more cash for even more dividend stock purchases, etc. DGI uses the power of compounding.
Some of my readers that love growth stocks might think dividend payers are boring and have low returns. And it is true that dividend stocks are often more mature and less volatile. But the combination of a growing dividend, a growing stock price, and holding your stocks for long periods can have great results. You can see that from this illustration:

(Source)
Also, dividends are often an important means for investors to prepare for the future. A lot of DGI investors use the strategy to prepare for retirement. They prepare to use the dividends and some of the gains to make a bigger retirement allowance.
What are value stocks?
What value... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
FORD MOTOR 9.41   17.1 0.55 0.60 6.37
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
GENERAL MOTORS 39.07   6.2 6.29 1.52 3.84
3M 170.58   20.6 8.28 5.76 3.41
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND 103.22   0.0 0.00 3.37 3.31
EMERSON ELECTRIC 64.71   18.4 3.52 1.96 3.02
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
VANGUARD HIGH DIVIDEND YIELD ETF 89.75   0.0 0.00 0.00 2.79
PROCTER & GAMBLE 122.77   90.3 1.36 2.98 2.49
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36
MCDONALDS 212.15   27.9 7.61 4.64 2.21
HORMEL FOODS 44.00   24.3 1.81 0.84 1.92
WAL-MART STORES 116.92   26.3 4.44 2.12 1.83
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82
VANGUARD DIVIDEND APPRECIATION ETF 120.84   0.0 0.00 0.00 1.58
GENERAL ELECTRIC 9.26   0.0 -2.15 0.04 0.44
ISHARES DOW JONES INTERNATIONAL SELECT DIVIDEND INDEX FUND 31.06   0.0 0.00 0.00 0.00