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We recently went through the 1300 different stocks that have a dividend yield of 3% or more to create a list of our top rated picks. Our normal method is to find the best stocks based on dividend yield, dividend growth, income growth, payout ratio and performance. With the rise in market value over the last 3 months, we decided to put more emphasis on income growth than we had in the past. Now more than ever, we are in a stock pickers market. Earnings will be driving stocks and dividends higher in 2012. Below are our top rated dividend stocks based on dividend fundamentals.

Avista Corporation (NYSE:AVA)

Rating: 98/100. Avista has a dividend yield of 4.5% and a 5 year dividend growth rate of 14.3%. It has raised its dividend for 9 consecutive years and has a payout ratio of 65, just slightly above what we normally like to see. Avista has a 3 year net income growth rate of 33.9%. AVA stock has increased by over 10% in the last year but is down 4% so far year to date. We believe Avista is at a good value after utility stocks have pulled back as a group lately.

Rogers Communications (NYSE:RCI)

Rating: 97/100. Rogers Communications has a dividend yield of 3.7% and a 5 year dividend growth rate of 76%. It has a 3 year net income growth rate of 15.9% and a payout ratio of 49%. Rogers has raised its dividend for 6 consecutive years. RCI stock is up 10.2% in the last 12 months. We would like to see the yield above 4% before we rate the stock higher.

Elmira Savings Bank (NASDAQ:ESBK)

Rating: 97/100. Elmira has a dividend yield of 4.2% and a 5 year dividend growth rate of 7.2%. It has a 3 year net income growth rate of 32% and a payout ratio of 46%. Elmira has been rewarding shareholders with an 11% increase over the last 12 months. Most of that has come in 2012 where the stock is up 9.6%. To rate this stock higher we would like to see Elmira increase its dividend more regularly and at a faster pace.

Wisconsin Energy Corporation (NYSE:WEC)

Rating: 97/100. Wisconsin Energy Corp has a dividend yield of 3.2% and a 5 year dividend growth rate of 18%. It has raised its dividend for 8 consecutive years and has a payout ratio of 49%. WEC has a 3 year net income growth rate of 10.8% and the stock is up over 16% in the last year. We would like to see a higher dividend yield on this name but we do like the rate of dividend increases.

China Mobile (NYSE:CHL)

Rating: 97/100. China Mobile has a dividend yield of 3.5% and a 5 year dividend growth rate of 18.7%. The company pays dividends twice a year. It has a payout ratio of 31% and a 3 year net income growth rate of 11.8%. CHL stock is up 11.4% in the last 12 months. Most of that has come in 2012. The company's stock is up 8.7% year to date.

Sunoco Logistics Partners (NYSE:SXL)

Rating: 98/100. Sunoco Logistics Partners (LP) has a dividend yield of 4.2% and has raised its dividend for 9 consecutive years. It has a 5 year dividend growth rate of 9.2% and its stock is up 34.4% over the last 12 years, making it the best performer on our list. Sunoco Logistics has a 3 year net income growth rate of 20.8% and we believe it is positioned for further growth in 2012.

Mattel (NYSE:M)

Rating: 95/100. Mattel has a dividend yield of 3.1% and a 5 year dividend growth rate of 10.2%. It has raised its dividend for the last 3 years and has a payout ratio of 46%. Mattel has a 3 year net income growth rate of 26.5% and the stock is up 31% over the last 12 months. We would like to see a higher dividend yield and consistent annual dividend increases from Mattel before we can rate the stock higher.

Source: 7 Top Rated Dividend Stocks