3 Top Dividend Stocks for 2014

If you're looking for the top dividend stocks for 2014, you aren't alone. In the wake of persistently low interest rates, income investors have flocked to dividend stocks. Here are three that may just prove to be the top dividend stocks for 2014.

AbbVie (NYSE: ABBV  ) was spun off from Abbott Laboratories (NYSE: ABT  ) at the beginning of 2013. The biopharmaceutical company boasts not only an impressive drug portfolio including blockbuster anti-inflammatory drug Humira, but also a great deal of opportunities in the hepatitis C market. Even though Humira will come off patent in 2016, AbbVie is focused on future growth opportunities. The company is investing in proprietary technologies, allowing it to get a leg up on targeted cancer treatments.

AbbVie's dividend yields 3.2%. The payout ratio for the dividend is a mere 17%. That means just 17% of AbbVie's earnings go to paying its dividend, which leaves ample room for further growth. The company's forward P/E ratio of 15 also appears attractive. Our Motley Fool CAPS community has crowned AbbVie a 5-star (out of 5) stock. Keep your eye on AbbVie -- it's likely to be one of the top dividend stocks for 2014.

Chevron (NYSE: CVX  ) achieved record profit in late 2012, but since then it has slumped due to lower margins from its refineries. Chevron plans to boost its oil and gas production by more than 20% by 2017 from 2010 levels, mainly by developing deepwater oil fields, boosting shale production, and increasing its number of liquefied-natural-gas (LNG) plants. LNG projects in the Gulf of Mexico and Australia will likely power the company's future growth.

Chevron's dividend yields 3.4%. The payout ratio for the dividend is 31%, leaving plenty of room for growth and some wiggle room in case margins continue to suffer for a while. Chevron has increased its dividend by more than 50% over the past five years. The California-based oil giant's forward P/E ratio of 10 is especially enticing. Chevron definitely looks like one of the top dividend stocks for 2014.

Textainer Group Holdings (NYSE: TGH  ) owns, manages, and leases a fleet of marine cargo containers. In fact, it's one of the world's largest intermodal container leasing companies. Some of Textainer's competitive advantages include massive economies of scale, high fleet utilization, and a stable customer base. And we haven't even started talking about its incredible dividend.

Textainer Groups Holdings' dividend yields 5.1%, which the company has more than doubled over the past five years. The payout ratio for the dividend is 52%, which still leaves some room for further growth. The company's forward P/E ratio of 10 appears extremely attractive. Without a doubt, Textainer Holdings looks like one of 2014's top dividend stocks.

Looking for more great dividend stocks? Check out a recent article by longtime Fool contributor Selena Maranjian, who called out her top dividend stocks for 2014.

The No. 1 Way to Lose Your Wealth Without Even Knowing It
You’ve fought hard to build wealth for you and your family. Yet one all-too-common pitfall could completely derail your dreams before you even know it. That's why a company The Economist hails as "an ethical oasis" has isolated five simple questions you must answer to ensure that your financial future is really secure.

Can you answer YES to all five of these eye-opening questions?
Click here to find out -- before it’s too late!


Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2808527, ~/Articles/ArticleHandler.aspx, 9/18/2014 2:08:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement