Investing in dividend stocks can help you build long-term wealth, as they provide a consistent stream of income. While they may not make you rich overnight, they are a valuable addition to any diversified investment portfolio. In this post, we’ll discuss some of the best dividend stocks for 2023 and provide you with valuable insights on why these stocks are worth considering.
Join us as we delve into the world of dividend stocks and explore some of the most promising options for the rest of the year.
Metrics used to Rate the Best Dividend Stocks for 2023
Payout Ratio: Under 40% = 1 Star, Between 40-55% = 0.5 Stars, Over 55% = 0 Stars
5 Years Capital Gain: Over 75% = 1 Star, Between 40-75% = 0.5 Stars, Under 40% = 0 Stars
3 Years Dividend Growth: Over 10% = 1 Star, Between 6-10% = 0.5 Stars, Under 6% = 0 Stars
PE Ratio: Under 15 = 1 Star, Between 15-20 = 0.5 Stars, Over 20 = 0 Stars
Proj. Earnings Growth: Over 9% = 1 Star, Between 5-9% = 0.5 Stars, Under 5% = 0 Stars
In this post, we’ve analyzed companies with a dividend growth history of 10 years or more. By focusing on such companies, we can identify those that have a proven track record of consistent dividend payouts and growth.
Our aim was to identify hidden gems that may not be as well-known as Microsoft and other established giants, but that still offer strong potential for dividend growth and stable returns.
Top 14 Dividend Stocks
Fastenal Co (FAST)
Fastenal is a leading industrial supply company that provides a range of products and services, including fasteners, tools, and safety equipment. Fastenal’s projected earnings growth is 5.58%, with a PE ratio of 28.18 and a dividend payout ratio of 71.79%. The company has also seen impressive 3-year dividend growth of 12.54% and 5-year capital gain of 115.48%.
Tractor Supply Co (TSCO)
Tractor Supply Co is a leading retail company that specializes in providing farm and ranch supplies, home improvement products, and outdoor living essentials. The company’s projected earnings growth is 9.93%, with a PE ratio of 24.59 and a dividend payout ratio of 42.43%. Tractor Supply Co has also seen impressive 3-year dividend growth of 39.35% and 5-year capital gain of 256.85%.
Carlisle Companies, Inc. (CSL)
Carlisle Companies, Inc. is a diversified industrial company that operates in multiple sectors, including construction materials, commercial roofing, aerospace, and defense. As of 2023, the company’s projected earnings growth is 9.20%, with a low PE ratio of 12.30 and a low dividend payout ratio of 18.93%. Carlisle Companies, Inc. has also shown consistent dividend growth, with a 3-year dividend growth of 12.75% and a 5-year capital gain of 101.75%.
Franklin Electric Co Inc (FELE)
Franklin Electric Co Inc is a leading global provider of systems and components for moving water and fuel. The company is expected to experience a projected earnings growth of 6.21%, with a PE ratio of 22.80 and a relatively low dividend payout ratio of 22.67%. Additionally, Franklin Electric Co Inc has demonstrated steady 3-year dividend growth of 10.38% and a strong 5-year capital gain of 106.95%.
Nexstar Media Group Inc (NXST)
Nexstar Media Group Inc is a leading diversified media company that operates over 190 TV stations across the US. As of 2023, the company is expected to experience impressive projected earnings growth of 134.29%, with a low PE ratio of 7.18 and a moderate dividend payout ratio of 22.36%. Nexstar Media Group Inc has also shown strong 3-year dividend growth of 25.99% and an impressive 5-year capital gain of 179.28%. The company’s diverse portfolio of media assets and its strategic focus on digital innovation have positioned it as a leader in the media industry.
Cintas Corporation (CTAS)
Cintas Corporation is a leading provider of workplace uniform rental and business supply services. With a projected earnings growth of 9.12%, a relatively high PE ratio of 37.12, and a moderate dividend payout ratio of 36.92%, Cintas Corporation has demonstrated its commitment to shareholders. The company has shown steady 3-year dividend growth of 18.10%, and a strong 5-year capital gain of 163.84%, reflecting its ability to generate consistent value.
Kroger Co (KR)
Kroger is a leading retail company operating grocery stores, convenience stores, and online platforms. With a moderate dividend payout ratio of 33.88%, the company has a projected earnings growth rate of 5.4% and a PE ratio of 16.11. Kroger has consistently rewarded shareholders with a 3-year dividend growth rate of 16.14% and a strong 5-year capital gain of 104.14%.
Toro Co (TTC)
Toro Co is a leading global manufacturer of outdoor maintenance equipment. It has a projected earnings growth of 9.32%, a PE ratio of 23.12, and a dividend payout ratio of 29.82%. The company has shown steady 3-year dividend growth of 10.26% and a 5-year capital gain of 79.15%.
Automatic Data Processing Inc (ADP)
Automatic Data Processing Inc is projected to have a solid earnings growth of 9.91%. With a PE ratio of 28.25, the company’s valuation may be considered high. Its dividend payout ratio is at 63.86%, with a modest 3 year dividend growth rate of 10.04%. The company has shown a stable 5 year capital gain of 76.39%.
Silgan Holdings Inc (SLGN)
Silgan Holdings Inc is a leading supplier of rigid packaging solutions for consumer goods in food, healthcare, and personal care markets. With a projected earnings growth of 7.5%, PE ratio of 16.78, and dividend payout ratio of 24.41%, Silgan has shown a 3-year dividend growth of 13.30% and 5-year capital gain of 82.46%.
S&P Global Inc (SPGI)
S&P Global Inc is a financial services company. It has a projected earnings growth of 14.84% and a PE ratio of 42.69. Additionally, the company has a dividend payout ratio of 42.35%, a 3-year dividend growth of 13.34%, and a 5-year capital gain of 88.76%.
Primerica, Inc. (PRI)
Primerica Inc is a financial services company with a projected earnings growth of 11.47%. Its PE ratio is 18.90, and the company has a dividend payout ratio of 26.64%. With a 3-year dividend growth of 17.39% and a 5-year capital gain of 94.44%, Primerica is a strong performer in the financial sector.
NextEra Energy Inc (NEE)
A leader in clean energy, NextEra generates and distributes renewable energy from wind and solar sources. They also run natural gas pipelines. The company’s projected earnings growth is 9%, with a PE ratio of 22.86. The Dividend Payout Ratio is 55.65%, and its 3-year dividend growth is 10.79%. The 5-year capital gain for the company is 87.23%.
Nike Inc (NKE)
Nike is a global sportswear company that produces athletic shoes, apparel, and accessories. The company’s projected earnings growth is 23.46%, with a PE ratio of 36.90. Its Dividend Payout Ratio is 39.19%, with a 3-year dividend growth of 11.51%. The 5-year capital gain for the company is 87.84%.
Overall, investing in dividend stocks can be a smart strategy for those looking to build long-term wealth and generate a consistent stream of income. As we’ve discussed in this post, there are some great options out there for dividend stocks to buy in 2023.
By investing in a diversified portfolio of high-quality dividend stocks, you can potentially benefit from both steady income and capital appreciation over the long term. Remember, it’s important to do your own research and consult with a financial advisor before making any investment decisions.