The Best Dividend Paying Stocks

On the first day of each month, I create a quick dividend list (from low-yield to high-yield paying stocks) of stocks with interesting performance and valuation figures. Stocks from that list are mid and large caps (market capitalization of more than USD1 billion) with double-digit long-term earnings growth rates. The companies are traded at AMEX, NYSE, Nasdaq and part of the Dow Jones, S&P 500 or Nasdaq Composite.

The reason is to find some attractive valuated companies with a strong market position and pricing power. Some of the results are distorted because they had an extraordinary good economic situation in the past. I’m talking about basic material stocks. Within the recent years, underlying prices for commodities increased very strongly because of China’s hunger for raw material. As a result, earnings as well as margins of mining companies exploded. The second most represented sector from the screen is the technology sector. Twenty-six companies fulfilled the above mentioned criteria; 17 of them are currently recommended to buy. Here are my most promising stocks from the list: Baytex Energy (BTE), Garmin (GRMN), Cisco Systems (CSCO) and Companhia de Bebidas das Americas (ABV).

Source: Guru Focus

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