Top Dividend Paying Stocks 2013

Welcome! We at 2TopDividendPayingStocks.com study analytically the best dividend paying stocks in the S&P 500 that have dividend growth characteristics, earnings per share growth and high return on shareholders' equity. We also look for companies with lower dividend payout ratios with a commitment to grow their dividends over 3 to 5 years. We feature top dividend paying companies across a broad sphere of industries to achieve maximum diversification; including Consumer Staples, Discretionary, Energy, Telecommunications, Industrials, Utilities, Real Estate Investment Trusts (REITs), Technology, Financials, etc.

 

Analysis of TELUS Corporation (TU) Dividend Stock

TELUS Corporation is a leading telecommunications giant in Canada, based in Vancouver, BC. The company operates in 2 business segments i) Wireless and ii) Wire line. Wireless services include cell phones, voice, data and hardware sales. Wire line services include television, Internet, data hosting and services, email, etc. For year ended 2012, TELUS had 7.7 million wireless subscribers, 3.4 million wire line customers, 1.4 million Internet subscribers and 678,000 TV customers. Incorporated in 1988, the company boasts 4G LTE coverage to 99% of Canadians, hence its rapid wireless growth. TELUS has a market capitalization of almost $25 billion and trades on both the New York Stock Exchange and Toronto Stock Exchange.


TELUS Corporation paid its first dividend in March 1999 and has increased it each year in a row starting from December 2004. The last dividend increase occurred on June 6th, 2013 when the Board of Directors announced a 6.25% increase from 32 cents per share to 34 cents. The company’s largest competitors include BCE, Rogers Communications, Shaw Communications, Manitoba Telecom and Quebecor. TELUS is also a part of the prestigious S&P/TSX Canadian Dividend Aristocrats; an index of Canadian companies that have paid and increased their dividends each year for at least 5 years.


Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 27.4% to its shareholders, which is phenomenal. The past decade, TELUS has increased its Earnings per Common Share (EPS) from $0.46 in 2003 to $2.02 in 2012. Analysts' estimate TELUS will earn $2.09/share in 2013 and $2.30/share in 2014.



TELUS has decent financial metrics including Return on Equity (ROE) of 17.05% which is lower than the Sector median of 18.66%. The company generates revenue of $253,818 per employee and net income of $30,607 per employee. The 5 year average return on equity (ROE) is 15%, lower than the sector median of 20.77%.


The current dividend yield from TELUS stock is 4.3%. Annual dividend payment has increased an average of 40% in the last 10 years; see the dividend growth chart below. A 40% growth in dividend distributions means the dividend payment actually doubles once almost every 2 and 1/2 years. Be aware that the dividend growth slows to only 6.7% a year in the last 5 years as the company matures. Current dividend payout ratio according to Reuters is 60% which leaves little room for future dividend increases as the company grows its Earnings per Share.




> Read Full: Telus Dividend Stock Analysis
 

Analysis of Philip Morris (PM) Dividend Stock

Philip Morris International manufactures and sells cigarettes in markets outside of the US, including 180 countries globally. The company has a 28.8% global market share of selling cigarettes and shipped a whopping 927 billion units in 2012. The company's top brands of cigarettes include Philip Morris, Marlboro, L&M, Bond, Chesterfield, Lark, Parliament, Fortune, etc. Philip Morris was spun off from Altria Group in March 2008 and now functions as an independent entity. The company divides its markets in to i) European Union ii) Middle East, Africa and Eastern Europe iii) Asia iv) Latin America and Canada. Philip Morris was founded in 1847 with the opening of a small shop in London's bond street by Mr. Philip Morris. The company trades on New York stock exchange and has a market capitalization of $147 billion, employing 87,100 people worldwide.


Philip Morris paid its first dividend on June 2008 and has since increased it each year in a row. The last dividend increase occurred on September 25th, 2012 when the Board of Directors announced a 10.3% increase from 77 cents per share to 85 cents. The company’s largest competitors include British American Tobacco, Lorillard, Reynolds American, Imperial Tobacco, etc. Philip Morris is NOT a part of the prestigious S&P 500 Dividend Aristocrats Index; a group of companies that have paid and increased their dividends each year for the last 25 years. This is because the company was only spun off in March 2008 from Altria Group.


Over the last 5 years, this dividend growth stock has delivered an annualized rate of return of 14.2% to its shareholders, which is phenomenal. During this same time period, Philip Morris has increased its Earnings per Common Share (EPS) from $3.32 in 2008 to $5.17 in 2012. Analysts estimate Philip Morris will earn $5.45/share in 2013 and $6.08/share in 2014.



Philip Morris has an annual 163% average return on equity (ROE) because the company bought back $10.2 billion worth of stock from the market through January 2010. The company also pays out almost 70% of its earnings in the form of dividends, which reduces shareholders' equity in the company. This therefore enlarges the Return on Equity metric as the numerator (Net Income) is much larger than the denominator (Shareholders' equity). The company generates revenue of $899,472 per employee and net income of $102,491 per employee.


The current dividend yield from Philip Morris stock which trades on the New York Stock exchange is 3.8%. Annual dividend payment has increased an average of 12% in the last 5 years; see the dividend growth chart below. A 12% growth in dividend distributions means the dividend payment actually doubles once almost every 6 years. Current dividend payout ratio according to Reuters is 66% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: Philip Morris Dividend Stock Analysis
 

Analysis of 3M Co. (MMM) Dividend Stock

3M Company (MMM) is a diversified technology corporation that manages its businesses in 5 segments: i) Consumer ii) Electronics and Energy iii) Health Care iv) Industrial and v) Safety and Graphics. Founded in 1929, the company hit a milestone $29.9 billion revenues in 2012 and is growing through acquisitions and organic. 3M employs 87,677 people around the world and sports popular brands such as Ace, Futuro, Scotch-Brite, Nex-Care, Post-It, etc. For the year ended 2012, 30.4% of the company’s sales came from Asia/Pacific region, 22.5% from Europe/Africa/Middle East and 35.2% from America. The company is diversified globally with almost 65% of sales coming outside of the US for 2012. 3M trades on the New York Stock Exchange and has a market capitalization of $80 billion.


3M paid its first dividend in 1977 and has since increased it each year in a row. The last dividend increase occurred on February 13th, 2013 when the Board of Directors announced an 8.5% increase from 59 cents per share to 64 cents/share. The company’s largest competitors Honeywell International, Corning Inc., Danaher Corporation, Johnson & Johnson, DENTSPLY, Siemens, McKesson, etc. 3M Company is also a part of the prestigious S&P 500 Dividend Aristocrats Index; an index of companies that have paid and increased their dividends each year for the last 25 years.


Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 6.5% to its shareholders. The past decade, 3M has increased its Earnings per Common Share (EPS) from $3.83 in 2004 to $6.40 in 2012. Analysts estimate 3M will earn $6.70/share in 2013 and $7.36/share in 2014.


3M sports some decent financial metrics including Return on Equity (ROE) of 25.8% which is higher than the Sector median of 12.66%. The company generates revenue of $345,244 per employee and net income of $51,827 per employee. The 5 year average return on equity (ROE) is 28.46%, higher than the sector median of 7.4%.


The current dividend yield from 3M stock which trades on the New York Stock exchange is 2.2%. Annual dividend payment has increased an average of 7.9% in the last 10 years; see the dividend growth chart below. A 7.9% growth in dividend distributions means the dividend payment actually doubles once almost every 10 years. Be aware that the dividend growth slows to only 2.3% a year in the last 5 years as the company matures. Current dividend payout ratio according to Reuters is 37.65% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: 3M Dividend Stock Analysis
 

Analysis of PepsiCo (PEP) Dividend Stock

PepsiCo is the world's leader in manufacturing snacks, foods & beverages with revenues exceeding $65 billion annually and employs 278,000 people worldwide. PepsiCo owns some of the world's most popular brands, including Pepsi, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, Aquafina, 7 Up, Cheetos, Quaker, etc. PepsiCo was founded in 1965 through the amalgamation of Pepsi-Cola & Frito Lay. It has 22 brands that each generated about $1 billion in annual sales in 2012. Currently offering its products in over 200 countries, the stock trades on the New York stock exchange and has a market capitalization of $132 billion.


PepsiCo paid its first dividend in 1987 and has since increased it each year in a row. The last dividend increase occurred on June 5th, 2013 when the Board of Directors announced a 5.5% increase from 54 cents per share to 57 cents. The company’s largest competitors are Coca Cola, Dr Pepper Snapple, General Mills, Nestle, Mondelez International, Unilever, etc. PepsiCo is also a part of the prestigious S&P 500 Dividend Aristocrats Index; an index of companies that have paid and increased their dividends each year for the last 25 years.


Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 8.1% to its shareholders. The past decade, PepsiCo has increased its Earnings per Common Share (EPS) from $2.07 in 2003 to $3.96 in 2012. Analysts estimate PepsiCo will earn $4.37/share in 2013 and $4.74/share in 2014.




PepsiCo sports some decent financial metrics including Return on Equity (ROE) of 30.65% which is lower than the Sector median of 72%. The company generates revenue of $237,388 per employee and net income of $24,065 per employee. The 5 year average return on equity (ROE) is 32.98%, lower than the sector median of 72%.


The current dividend yield from Aflac stock which trades on the New York Stock exchange is 2.31%. Annual dividend payment has increased an average of 44.6% in the last 10 years; see the dividend growth chart below. A 45% growth in dividend distributions means the dividend payment actually doubles once almost every 2.5 years. Current dividend payout ratio according to Reuters is 21.47% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: Pepsi Dividend Stock Analysis
 

Analysis of Colgate (CL) Dividend Stock

Colgate-Palmolive is a consumer products company that sells oral and personal care, home care and pet nutrition products in over 200 countries and grossed $17.1 billion in sales in 2012. Very interesting is that 75% of its sales in 2012 came from international operations while 25% come from the US; thus a much diversified global brand. Oral care accounted for 44% of sales (Colgate Total, Plax, Optic White, Slim Soft tooth brushes), Personal care accounted for 22% (Palmolive, Soft Soap, Sanex shower gels, Irish Spring bar soap, Speed stick deodorant), Home care accounted for 21% (Ajax purifier, Palmolive Fresh, Fabuloso detergent) and Pet Nutrition accounted for 13% (Science Diet, Ideal Balance). Headquartered in New York, Colgate-Palmolive trades on the New York stock exchange and has a market capitalization of $56.1 billion and employs 37,700 people worldwide.


Colgate-Palmolive paid its first dividend in 1895 and has since increased it each year in a row for the last 50 years. The last dividend increase occurred on March 7th, 2013 when the Board of Directors announced a 9.7% increase from 31 cents per share to 34 cents. The company’s largest competitors include Procter & Gamble, Unilever, Kimberly Clark, Clorox, Avon Products, Church & Dwight, etc. Colgate-Palmolive is also a part of the prestigious S&P 500 Dividend Aristocrats Index; an index of companies that have paid and increased their dividends each year for the last 25 years.


Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 12% to its shareholders. The past decade, Colgate-Palmolive has increased its Earnings per Common Share (EPS) from $1.30 in 2003 to $2.60 in 2012. Analysts estimate Colgate-Palmolive will earn $2.83/share in 2013 and $3.12/share in 2014.




The current dividend yield from Colgate-Palmolive stock which trades on the New York Stock exchange is 2.25%. Annual dividend payment has increased an average of 27% in the last 10 years; see the dividend growth chart below. A 27% growth in dividend distributions means the dividend payment actually doubles once almost every 3 years. Note that dividend growth in the last 5 years is only 11%. Current dividend payout ratio according to Reuters is 66.2% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: Colgate Dividend Stock Analysis
 

Analysis of Aflac (AFL) Dividend Stock

AFLAC provides supplemental health & life insurance plans to over 50 million customers worldwide. Aflac's mission is to combine innovative strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. With over 70,000 licensed agents worldwide, AFLAC is headquartered in Columbus, Georgia and is a Fortune 500 company. AFLAC's insurance policies range from lump sum Cancer insurance, vision insurance, hospital confinement indemnity, accident coverage, short term disability, etc. AFLAC trades on the New York stock exchange and has a market capitalization of almost $26 billion. Aflac was founded in 1955 by three brothers and stands for American Family Life Assurance Company (AFLAC) of Columbus.


Aflac paid its first dividend in 1987 and has since increased it each year in a row. The last dividend increase occurred on November 9th, 2012 when the Board of Directors announced a 6% increase from 33 cents per share to 35 cents/share. The company’s largest competitors include Principal Financial Group, WellPoint, Aetna, Manulife Financial, Cigna Corporation and MetLife, etc. Aflac is also a part of the prestigious S&P 500 Dividend Aristocrats Index; an index of companies that have paid and increased their dividends each year for the last 25 years.


Over the last 10 years, this dividend growth stock has delivered an annualized rate of return of 8.7% to its shareholders, which is fairly good. The past decade, Aflac has increased its Earnings per Common Share (EPS) from $1.55 in 2003 to $6.14 in 2012. Analysts estimate Aflac will earn $6.18/share in 2013 and $6.52/share in 2014.




Aflac sports some decent financial metrics including Return on Equity (ROE) of 20.37% which is lower than the Sector median of 23.37%. The company generates revenue of $2.9 million per employee and net income of $342,673 per employee. The 5 year average return on equity (ROE) is 19.21%, lower than the sector median of 22.46%.


The current dividend yield from Aflac stock which trades on the New York Stock exchange is 2.31%. Annual dividend payment has increased an average of 44.6% in the last 10 years; see the dividend growth chart below. A 45% growth in dividend distributions means the dividend payment actually doubles once almost every 2.5 years. Current dividend payout ratio according to Reuters is 21.47% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: Aflac Dividend Stock Analysis
 

Analysis of McDonalds (MCD) Dividend Stock

McDonalds Corp. franchises & runs fast food restaurants in more than 120 countries across the globe and has over 34,480 restaurants. McDonalds menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Chicken Selects, Snack Wraps, french fries, salads, shakes, McFlurry desserts, sundaes, soft serve cones, pies and cookies. McDonalds was founded by Dick & Mac McDonald in 1940 who opened their first restaurant in San Bernardino, California.


McDonalds paid its first dividend in 1976 and has since increased it each year in a row. The last dividend increase occurred on November 29th, 2012 when the Board of Directors announced a 10% increase from 70 cents per share to 77 cents. The company’s largest competitors include Yum Brands (KFC, Taco Bell and Pizza Hut franchises), Burger King, Chipotle Mexican Grill, Wendy’s, etc. McDonalds is also a part of the prestigious S&P 500 Dividend Aristocrats Index; an index of companies that have paid and increased their dividends each year for the last 25 years.


Over the last 10 years, this dividend growth restaurant stock has delivered an annualized rate of return of 36.9% to its shareholders, which is phenomenal. The past decade, McDonalds has increased its Earnings per Common Share (EPS) from $1.16 in 2003 to $5.36 in 2012. Analysts estimate McDonalds will earn $5.70/share in 2013 and $6.24/share in 2014.




McDonalds sports some attractive financial metrics including Return on Equity (ROE) of 36.59% which is higher than the Sector median of only 19.09%. This ratio is high because the company generates revenue of $62,786 per employee and net income of $12,428 per employee. The 5 year average return on equity (ROE) is 34.55%, higher than the sector median of 18.75%.


The current dividend yield from McDonalds stock which trades on the New York Stock exchange is 3.07%. Annual dividend payment has increased an average of 25.4% in the last 10 years, see the dividend growth chart below. A 25% growth in dividend distributions means the dividend payment actually doubles once almost every 3 years. Current dividend payout ratio according to Reuters is 54.07% which leaves room for future dividend increases as the company grows its Earnings per Share.




> Read Full: McDonalds Dividend Stock Analysis