Tuesday, October 28, 2014

The 3 Best Dividend Stocks to Buy in November Tuesday, October 28, 2014

The 3 Best Dividend Stocks to Buy in November
by Chris Preston

Tuesday, October 28, 2014

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It's hard to believe, but the holidays are right around the corner. And that means some of America's largest companies are in a giving mood.

A number of big-name public companies are upping their dividends next month, rewarding shareholders just as Black Friday and the early holiday shopping season get underway. November also marks the beginning of the "best six months" for the stock market. As a result, the competition for investors' attention can be fierce.



There are few better ways for a company to separate itself than to demonstrate consistent dividend growth. Next month, three well-known stocks that have demonstrated that kind of consistent growth are upping their payouts yet again. If you don't already own shares in these companies, now would be a good time to get in on them.

Without further ado, here are the three best dividend stocks to buy in November:

November Dividend Stock No. 1: Microsoft (NASDAQ: MSFT)

One of the most consistent dividend growers in the technology space, Microsoft is upping the ante again next month. The company will increase its quarterly payout to 31 cents from 28 cents to payers of record as of Nov. 20.

The latest increase will mean that Microsoft's dividend has nearly doubled from 16 cents in just over three years. The company has now increased its dividend every year since 2006. The 2.7% yield is pretty impressive for a stock that has risen nearly 30% in the last year and 60% in the last two years.

November Dividend Stock No. 2: Lockheed Martin (NYSE: LMT)

America's top defense contractor is also becoming quite the safety play for income investors.

Next month Lockheed Martin is upping its generous quarterly payout from $1.33 to $1.50, a 12.8% increase. It will mark the 12th straight year that Lockheed Martin has increased its dividend. With earnings per share expected to improve by 16.7% this year and forecast to increase again next year, Lockheed Martin's dividend growth should continue for the foreseeable future.

The 3.3% yield on top of a 36% gain in the stock in the last year make Lockheed Martin an appealing investment. And at 15.8 times next year's earnings, the stock's run might not be over yet. 

The  newly improved dividend will be available to shareholders of record as of Nov. 26.

November Dividend Stock No. 3: McDonald's (NYSE: MCD)

McDonald's needs no introduction as a premier dividend grower. The fast-food giant has increased its dividend each of the past 37 years, officially making it a "Dividend Aristocrat." The latest increase will make it 38 years.

McDonald's is upping its dividend to 85 cents from 81 cents to shareholders of record as of Nov. 26. The resulting 3.7% yield nearly erases the 4.2% decline in the share price over the past year. McDonald's has taken a lot of flak lately for slowing earnings growth and its stagnant stock. But the company remains one of the most powerful dividend growers on the market, and that isn't likely to change anytime soon.

Good Investing,

Chris Preston
Richmond, Vermont

Further Reading:


The Best Dividend Stocks... and the Worst

The best dividends build wealth -- the worst, destroy it. Your portfolio could literally plummet 48% or more overnight. Make sure you own the right stocks with these two brand new investor guides...

Collect Dividend Income Every Month!

We've put together a simple calendar that pulls together all the market's best dividends into a single, easy-to-read document. One look, and you'll be able to set up a 12-month dividend stream for regular income every month.


 
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