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 (KSU) currently yields 1%, but could reach full speed after recovering from a recent decrease in coal shipments.
  • McCormick (MKC 1.78%) yields 2.1% and could be a spicy pick, with accelerating revenues and emerging market exposure.
  • International Paper (IP 0.59%) 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.