Dividends4Life: Apple, Microsoft Lead Dividend Stocks to Buy and Hold for 2014

Last year about this time I suggested five dividend stocks to buy and forget. Overall, the portfolio not only made money, but outperformed a rising market. For 2014, I have the following list of dividend stocks to buy and forget that I hope you will find informative and beneficial for your investing objectives. Let's first take a quick look at last year's picks: Corning (GLW); Coca-Cola (KO); Wells Fargo (WFC); Intel (INTC) and General Electric (GE). Five-for-five winners and all double-digit gainers (admittedly, a rising tide lifts all boats in a bull market like we've experienced in 2013). However, the five picks were superior to the benchmark index because this portfolio experienced lower volatility and a higher dividend yield. In other words, had the overall market not skyrocketed higher, the small advantage would be much greater.

Predicting a year in advance is no small endeavor, especially if you want any hope of getting it right. It's on par with driving using your rear view mirror. Just because you're going to miss a turn or two on the way doesn't mean we shouldn't try. After all, the market is predictable to a certain degree, and by reviewing the past, we are able to make logical bets on the future. My first pick is one that I've called an extraordinary dividend stock before. Microsoft (MSFT) isn't the most loved company from a popularity survey, but if you care about making money more than owning the latest in stock that may be out tomorrow (think Twitter (TWTR)), Microsoft is one to own. Apple (AAPL) is currently worth just under $500 billion and trades more than 5 million shares on a typical day. The company is relatively cheap based on earnings and revenue per share and pays an acceptable dividend with a low payout ratio.

Source: The Street

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