In this video, Austin Smith identifies three dividend stocks that lack extremely high current yields but could be great choices for the long run:

  • Kansas City Southern (NYSE:KSU) currently yields 1%, but could reach full speed after recovering from a recent decrease in coal shipments.
  • McCormick (NYSE:MKC) yields 2.1% and could be a spicy pick, with accelerating revenues and emerging market exposure.
  • International Paper (NYSE:IP) now yields 2.9% after a 40% rise in 2012. The company could continue to roll, as its focus on corrugated packaging may benefit from an increase in online retail.

Austin Smith owns shares of Ford. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and McCormick & Company. 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.