3 Ultimate Dividend Paying Stocks

When we’re looking for top dividend picks, we screen for stocks that are widely held by five or more of our top rated fund managers and are yielding more than the S&P 500

Greggory Warren, CFA 21 September, 2015 | 3:40PM

When we screen for top dividend-paying stocks among the holdings of our Ultimate Stock-Pickers we try to hone in on the highest-quality names that are currently held with conviction by our top managers. Morningstar maintains a list of 26 US-based fund managers that we believe are worth monitoring on a regular basis – our Ultimate Stock-Pickers, and cross check our stock research against the opinions of professional money managers.

When we’re looking for top dividend picks, we screen for holdings that are widely held by five or more of our top managers, are yielding more than the S&P 500, represent firms wide or narrow economic moats, and have uncertainty ratings of either low or medium.

With valuation being a bigger concern for investors right now, we thought it best to try and hone in on the names on both list that are trading at less than 85% of our analysts' fair value estimates, believing that there might be more value to be had in solid dividend payers offering investors a wider than average margin of safety.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
General Electric Co10.88 USD2.64
Procter & Gamble Co137.47 USD0.09
Unilever PLC4,326.00 GBX1.00

About Author

Greggory Warren, CFA  Greggory Warren, CFA, is a senior stock analyst with Morningstar.

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