3 Top Dividend Stocks for 2014

These top dividend stocks for 2014 offer hefty payouts -- and growth potential, too.

May 14, 2014 at 6:10PM


Source: LendingMemo.com.

Those seeking the top dividend stocks 2014 has to offer are on a wise quest. Dividends, after all, can turbocharge a portfolio, generating welcome income in both rising and falling markets. Another thing to remember is that top dividend stocks in 2014 and any other year are likely to be sturdier than many other investments. That's because companies tend to commit to paying dividends only when they feel reasonably sure that they'll be able to keep paying them.

When it comes to finding top dividend stocks, 2014 is a great time to start, or continue, investing in dividend payers. Below are three compelling companies that stood out when I screened for significant dividend yields among companies with average three-year growth rates of 5% or more for both revenue and earnings.

Meridian Bioscience (NASDAQ:VIVO), which specializes in diagnostic tests, recently yielded 3.9%. Its dividend has been growing by an annual average of 4% over the past five years, and its payout ratio is a reasonable 65%, suggesting room for growth. Its current and forward-looking P/E ratios are both well below its five-year average, too. The company reported its second quarter last month, with revenue up 6% over year-ago levels and net income roughly flat. In March, it received FDA approval for a new molecular diagnostic test for Bordetella pertussis, which causes whooping cough, and this test is expected to boost sales in the second half of the year. The company's top line has been steadily growing, and it sports double-digit net margins and returns on invested capital. Its balance sheet features no debt.

Omega Healthcare Investors Inc (NYSE:OHI) recently yielded 5.5%. This top dividend stock for 2014 has been growing its payout by an annual average of 10% over the past five years. Its payout ratio is 121%, which is definitely on the high side, but the company has long treated its shareholders well, with its stock growing by an annual average of 10% over 20 years. Omega Healthcare is a real-estate investment trust, specializing in financing and the long-term care industry. As of the end of 2013, it owned or held mortgages on 538 skilled nursing facilities, assisted living facilities, and other specialty hospitals, spanning 37 states. They were operated by 49 third-party companies. The company's first quarter featured funds from operation rising 20% over year-ago levels and dividends rising for the seventh quarter in a row. In a conference call, management noted that competition has been intensifying and that "interest returns that we are getting on potential deals has gone down."

Enterprise Products Partners L.P. (NYSE:EPD) is another of the top dividend stocks of 2014. It recently yielded 3.9%, and its dividend has been growing by an annual average of 5% over the past five years. Its payout ratio is 96%, which, like that of Omega Healthcare Investors, is steep. Enterprise Products is a midstream energy master limited partnership, which means that it has special tax complications (and benefits) any interested investor should read up on. It's making money from some strategically placed pipelines and from exports of liquefied-natural-gas products such as propane and ethane. While bears worry about its debt and vulnerability to weather and price drops, bulls like its growth prospects related to our nation's need to upgrade our energy infrastructure.

The companies above are not the only top dividend stocks 2014 has to offer. Do your own screening for great candidates with our CAPS Stock Screener.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Longtime Fool specialist Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information