3 Dividend Stocks for 2017

For long-term value investors, income/dividends are key. The safety cushion they provide is as powerful as the “margin of safety” concept itself. You would be shocked, however, by how many clients we speak with who don’t know what is going on with their investments and what kind of income streams their dividends generate. We try to avoid companies that do not have strong sustainable competitive advantages or that offer dividend yields below 2%. We also tend to avoid companies offering yields above 8% as many of these firms are in serious trouble and will likely have to cut their dividends in the near future. Unfortunately, finding great dividend-paying stocks that meet these criteria isn’t that simple.

Sure, there are lots of companies offering high yields with long dividend track records, but many of these companies are still unsafe poor investments. Just consider all the supposedly “safe” dividend-paying energy stocks that got hammered over the last few years. If you’re going to invest in stocks for dividends, you’ve got to target those stocks that pay nice dividends of 2% but are still selling at or below the fair value. Within the current market environment, we think there are many attractive dividend-paying stocks selling at reasonable valuations. Let’s take a look at three of our top dividend-paying stocks for 2017: Bank of Nova Scotia (NYSE:BNS), Johnson & Johnson (NYSE:JNJ) and Quest Diagnostics (NYSE:DGX).

Source: Guru Focus

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