Here's a novel idea: As we dive headlong into the new year, why not invest in companies that actually give you their profits?
With decades upon decades of research and scholarly thought sunk into the theory around stocks and the stock market, it can be easy to get lost in layers of abstraction. What's the stock's price-to-earnings ratio? What does a discounted cash flow model say it's worth? Is the stock in a confirmed uptrend that's taking it over the 30-day moving average?
Go ahead and shake your head like an Etch A Sketch to clear that all out. At the end of the day, a stock is an ownership stake in a business. What is that ownership stake really worth to you if the company withholds all of its profits?
What follows are 12 companies that do share their profits and are all on my watchlist for the year ahead.
Owens & Minor
More? You want more?
I'm confident enough in all of the picks above that I'll be adding every stock to my Motley Fool CAPS portfolio -- at least, the ones that aren't already there.
If you like what I've laid out above and are thirsting for even more dividend stocks, I'd suggest you check out The Motley Fool's special report "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can grab a free copy by clicking here.
The Motley Fool owns shares of Darden Restaurants, Aflac, Lockheed Martin, Clorox, and National Presto Industries. Motley Fool newsletter services have recommended buying shares of Aflac, Flowers Foods, Exelon, Hasbro, and Mattel. Motley Fool newsletter services have recommended creating a write covered strangle position in Exelon. 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.
Fool contributor Matt Koppenheffer owns shares of Mattel and National Presto Industries, but does not have a financial interest in any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.