Best Dividend Stocks Picks In 2012

John Defeo of has put forward his picks for the best dividend stocks of 2012.

Why should we listen? Well, Defeo has an established record of picking dividend stocks that will outperform the market. In September 2010 he picked 10 “Dividend Aristocrats” (an index of companies that raised dividends for 25 years or more) that proceeded to handily outperform the S&P 500, the DJIA and the Vanguard Total Stock Market Index.

Stock market chart rising

Using the same criteria established in 2010 (cash flow yield greater than a 10-year U.S. Treasury note, return on invested capital greater than 10%, appreciation in value over the past decade, here are his picks for the dividend stocks most likely to outperform in 2012:

  1. LEG – Leggett & Platt Inc.
  2. NUE – Nucor Corp.
  3. BCR – C.R. Bard Inc.
  4. ITW – Illinois Tool Works
  5. BDX – Becton Dickinson
  6. MMM – 3M Co
  7. SIAL – Sigma-Aldrich Corp.
  8. PPG – PPG Industries Inc.
  9. HRL – Hormel Foods Corp

Keep in mind that someone’s opinion of which stocks are most likely to make money is just that, an opinion. No one can see the future and no one can guarantee a return on any investment. Do your homework and invest wisely.

2 thoughts on “Best Dividend Stocks Picks In 2012

  1. I bought Costco. It pays a dividend and has performed extremely well lately. Plus, it’s generally a good company. Good products, good compensation for employees, good relationship with the community.

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