Best Dividend Companies To Own For 2014

Scouring the market for excellent dividend stocks isn't as easy as finding the stocks with the highest yields. In fact, dividend yield is just one of many factors investors should consider when they are looking for the best dividend stocks. To illustrate, I'll analyze two companies whose stocks have meaningful dividend yields: Waste Management (NYSE: WM  ) and Ford (NYSE: F  ) .

Economic moat
The essential marker of the best dividend stocks is an economic moat. Without a moat, forecasting future cash flow and dividends becomes unreliable. To determine whether a company has an economic moat, you'll need to look for business advantages it has over its competitors, and then find some clear evidence to support your conclusion.

For instance, Waste Management constitutes the largest disposal business in North America. It boasts the largest network of recycling facilities, waste transfer stations, and landfills in the industry. Size like this usually implies that the company benefits from economies of scale. And, not surprisingly, the company's unparalleled dominance in landfill ownership helps it achieve above-average return on equity, at 13%. Compare that to peers Republic Services and Waste Connections at 7% and 9%, respectively.

Top Trucking Companies To Buy For 2015: Windstream Corporation(WIN)

Windstream Corporation provides communications and technology solutions in the United States. The company offers various solutions, including IP-based voice and data services, multiprotocol label switching (MPLS) networking, data center and managed services, hosting services, and communications systems to businesses and government agencies. It also provides high-speed Internet, voice, and digital television services to residential customers primarily located in rural areas. The company?s data services include data center and managed hosting, MPLS networking, and dedicated access, as well as high-speed Internet to business customers; integrated solutions consist of multiple voice and data services delivered over an IP connection; voice services comprise local and long distance, call waiting, caller identification, and voicemail; and special access services include point-to-point switching arrangements for voice and data traffic. In addition, it provides wholesale services, which primarily include voice and data services on a wholesale basis to other carriers; usage sensitive services to long distance companies; and other local exchange carriers for access to the network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for the use of its facilities. As of June 30, 2011, the company served approximately 3.3 million access lines, 1.3 million high-speed Internet customers, and operated approximately 60,000 fiber route miles. Windstream Corporation is based in Little Rock, Arkansas.

Advisors' Opinion:

• [By Dimitra DeFotis]

  One of the day’s biggest movers was�Windstream Holdings (WIN), which surged more than 20% before settling up 12% Tuesday after the high-yielding telecom company said it would spin off assets into a real estate investment trust�(covered on our income blog). The REIT news carried other telecom names higher:� local phone companies�CenturyLink�(CTL) and�Frontier Communications�(FTR), shot up 5.8% and 14.3% respectively. And telecom giants got a lift too:�Verizon Communications�(VZ) rose 0.76%, while�AT&T�(T) climbed 2.6%. �Telecom exchange-traded funds also rallied on the REIT news.

• [By David Dittman]

  The S&P 500 Telecommunication Services Index includes just six names, though the UF Portfolio has exposure to half the list via AT&T Inc (NYSE: T) and Verizon Communications Inc (NYSE: VZ) in the Growth Portfolio and the common stock of Windstream Holdings Inc (NYSE: WIN) in the Income Portfolio Aggressive Holdings and a Windstream bond in the Income Portfolio Conservative Holdings.

• [By Mark Hulbert]

  The stocks are C.H. Robinson Worldwide (CHRW) �, a freight-transportation company; chip maker Cirrus Logic (CRUS) �; independent oil company Forest Oil (FST) �; investment bank Greenhill & Co. (GHL) �; Intrepid Potash (IPI) �, a fertilizer company; retailer J.C. Penney (JCP) �; Quest Diagnostics (DGX) �, a medical diagnostic company; Strayer Education (STRA) �, a for-profit college; Tower Group International (TWGP) �, an insurance company; and Windstream Holdings (WIN) �, a rural telecommunications firm.

Best Dividend Companies To Own For 2014: The Cushing MLP Total Return Fund(SRV)

Cushing MLP Total Return Fund is a closed-end mutual fund launched by Swank Capital, LLC. The fund is managed by Swank Energy Income Advisors L.P. It invests in the public equity and fixed income markets across the globe with a focus in United States. The fund typically invests in MLPs, Other Natural Resource Companies, and global commodities. It primarily invests in the securities of MLPs, other equity securities, debt securities, and securities of non-U.S. issuers employing a fundamental analysis. Cushing MLP Total Return Fund was formed on May 23, 2007 and is domiciled in Dallas.

Advisors' Opinion:

• [By Robert Rapier]

  As I write this, Tortoise Pipeline and Energy (NYSE: TTP) trades at a discount of 15.1 percent to its underlying assets, while at the other end of the spectrum Cushing MLP Total Return Fund (NYSE: SRV) trades at a 17.4 percent premium. The average MLP closed-end fund listed trades at a 4.9 percent discount, which is perhaps reasonable given the loss of certain tax advantages and the fact that management fees will eat into returns.

• [By Robert Rapier]

  As I write this, Tortoise Pipeline and Energy (NYSE: TTP) trades at a discount of 15.1 percent to its underlying assets, while at the other end of the spectrum Cushing MLP Total Return Fund (NYSE: SRV) trades at a 17.4 percent premium. The average MLP closed-end fund listed trades at a 4.9 percent discount, which is perhaps reasonable given the loss of certain tax advantages and the fact that management fees will eat into returns.

Best Dividend Companies To Own For 2014: Curtiss-Wright Corporation (CW)

Curtiss-Wright Corporation, together with its subsidiaries, designs, manufactures, and overhauls precision components and systems. It operates in three segments: Flow Control, Motion Control, and Metal Treatment. The Flow Control segment designs, manufactures, and distributes engineered products, including valves, pumps, motors, generators, instrumentation, shipboard systems, and control electronics that manage the flow of liquids and gases, generate power, provide electronic operating systems, and monitor or provide critical functions for naval defense, power generation, oil and gas, and general industrial markets. The Motion Control segment designs, develops, manufactures, and maintains mechanical actuation and drive systems, specialized sensors, motors, electronic controller units, and embedded computing components and control systems for ground defense, aerospace defense, commercial aerospace, and general industrial markets. The Metal Treatment segment provides metallu rgical processing services comprising shot peening, laser peening, specialty coatings and heat treating for commercial and defense aerospace, oil and gas, power generation, automotive, transportation, construction equipment, and miscellaneous metal working industries. The company operates primarily in the United States, the United Kingdom, and Canada. Curtiss-Wright Corporation was founded in 1929 and is headquartered in Parsippany, New Jersey.

Advisors' Opinion:

• [By Alex Planes]

  In 1917, the two major aircraft manufacturers were forced into a patent pool that would offer modest licensing terms for prospective upstarts. By this point, the Wrights were out of the industry. Wilbur had died years earlier, and Orville had sold his stake to outside investors, leaving Curtiss with an easier path to the dominance previously denied him. The Wrights' reputation was badly damaged, and competition came to the industry despite their efforts. Years later, on the eve of the Great Depression, Curtiss gained a final measure of victory when his company and the Wrights' namesake business merged to become Curtiss-Wright (NYSE: CW  ) , which was at the time the largest aviation company in the United States. This company was also briefly a part of the Dow (from 1928 to 1930), making it the first aviation component in the index's history.

• [By Marc Bastow]

  Engineered and advanced technical service products manufacturer Curtiss-Wright (CW) raised its quarterly dividend 30% to 13 cents per share, payable April 10 to shareholders of record as of March 27.
  CW Dividend Yield: 0.82%

• [By Shauna O'Brien]

  On Monday, Curtiss-Wright Corp. (CW) announced that it has completed its acquisition of Arens Controls, LLC for $98 million.

  The newly acquired business will operate under CW’s Controls segment. David C. Adams, President and CEO of CW noted: “The acquisition of Arens complements our previous acquisitions of Williams Controls and PG Drives, further strengthening and growing Curtiss-Wright’s existing industrial controls business.”

  “This is another step toward our vision of being the supplier of choice for operator control subsystems and critical drivetrain components in specialty vehicles. As a leading designer and manufacturer of critical vehicle controls technologies, Arens’ complementary products and long-standing customer relationships position Curtiss-Wright for increased penetration within the commercial and off-road vehicle markets. Additionally, this acquisition allows us to leverage our global manufacturing footprint to create margin expansion opportunities,” Adams added.

  Curtiss-Wright shares were down 46 cents, or 1.00%, during Monday morning trading. The stock is up 39% YTD.

Best Dividend Companies To Own For 2014: Simon Property Group Inc.(SPG)

Simon Property Group, Inc. is a real estate investment trust. The firm engages in investment, ownership, and management of properties. It invests in the real estate markets across the globe. The firm?s portfolio includes regional malls, premium outlet centers, the mills, community / lifestyle centers, and international properties. Simon Property Group was founded in 1960 and is based in Indianapolis, Indiana.

Advisors' Opinion:

• [By GuruFocus]

  Simon Property Group Inc. (SPG) Reached the 52-Week Low of $146.10

  The prices of Simon Property Group Inc (SPG) shares have declined to close to the 52-week low of $146.10, which is 21.9% off the 52-week high of $182.45. Simon Property Group Inc. is owned by 11 Gurus we are tracking. Among them, five have added to their positions during the past quarter. Five reduced their positions.

• [By GuruFocus]

  Simon Property Group Inc (SPG) Reached the 52-Week Low of $147.50 The prices of Simon Property Group Inc (SPG) shares have declined to close to the 52-week low of $147.50, which is 21.5% off the 52-week high of $182.45. Simon Property Group Inc is owned by 11 Gurus we are tracking. Among them, 5 have added to their positions during the past quarter. 5 reduced their positions.

• [By Brad Thomas]

  REITs mentioned: (VTR), (OHI), (O), (DLR), (HCP), (HTA), (KIM), (FRT), (SPG), and (SKT).

  Note: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.

Best Dividend Companies To Own For 2014: Alliance Resource Partners L.P.(ARLP)

Alliance Resource Partners, L.P. engages in the production and marketing of coal for utilities and industrial users in the United States. It operates nine underground mining complexes, which offer low, medium, and high-sulfur coal. The company also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and purchases and resells coal. In addition, the company provides mine products and services comprising design and installation of underground mine hoists for transporting employees and materials in and out of mines; design of systems for automating and controlling various aspects of industrial and mining environments; and design and sale of mine safety equipment, such as its miner and equipment tracking, and proximity detection systems. Further, it offers ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. As of December 31, 2010, the company had approximately 697.4 million tons of coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of Alliance Resource Partners, L.P. The company was founded in 1971 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Matt DiLallo]

  For example, the company has pointed out repeatedly that it's no longer interested in growing its coal business either organically or by way of acquisition. Starting next year, the company will only spend $300 million-$350 million per year in maintenance capital as it turns the coal business into harvest mode. In my opinion, that makes it a great candidate for an MLP structure similar to Alliance Resources (NASDAQ: ARLP  ) . MLPs tend to be valued higher by the marketplace because of the steady income produced; Alliance, for example, currently yields 6%. CONSOL could use the copious cash flows from coal to produce a nice income vehicle if it structured its coal business as an MLP.

• [By Robert Rapier]

  The National Association of Publicly Traded Partnerships (NAPTP) lists five MLPs in the category ��atural Resources – Coal,��although two of the five are Alliance Holdings (NYSE: AHGP) and its operating affiliate, Alliance Resource Partners (NYSE: ARLP). The other three are Natural Resource Partners (NYSE: NRP), Rhino Resource Partners (NYSE: RNO), and Oxford Resource Partners (NYSE: OXF).

• [By Tyler Crowe]

  Looking at these trends might lead one to believe that the glory days of coal are numbered, and these companies are�certainly�priced to fail. All four of the country's largest coal companies trade at values well below the average for the S&P 500.

  Company Price to Tangible Book Value P/E Ratio (TTM) S&P 500 5.40 17.7 Peabody Energy (NYSE: BTU  ) 1.09 9.22 Arch Coal (NYSE: ACI  ) 0.41 N/A Alliance Resource Partners� (NASDAQ: ARLP  )

  2.52

• [By Sean Williams]

  Keep in mind that some companies�deserve�their current valuations. Coal miner Alliance Resource Partners (NASDAQ: ARLP  ) , which is run as a master limited partnership, reported yet another record profit in the first quarter and boosted its quarterly payout yet again. By locking in long-term contracts, Alliance Resource has nearly eliminated its exposure to currently weak coal prices and is able to count on steady and growing cash flow.

Best Dividend Companies To Own For 2014: Sempra Energy(SRE)

Sempra Energy, together with its subsidiaries, develops new energy infrastructure, operates utilities, and provides energy-related products and services worldwide. It operates in six segments: SDG&E, SoCalGas, Sempra Generation, Sempra Pipelines & Storage, Sempra LNG (liquefied natural gas), and Sempra Commodities. The SDG&E segment has electric and natural gas franchises that locate, operate, and maintain facilities for the transmission and distribution of electricity and natural gas to residential, commercial, industrial, street and highway lighting, and direct access customers. The SoCalGas segment has natural gas franchises that locate, operate, and maintain facilities for the transmission and distribution of natural gas to electric generation, wholesale, large commercial, industrial, and enhanced oil recovery customers. The Sempra Generation segment involves in the generation and wholesale distribution of electricity through a fleet of natural gas-fired power generati on facilities in Arizona, Nevada, and Indiana, as well as Mexico with a total capacity of 2,513 megawatts. The Sempra Pipelines & Storage segment operates 1,883 miles of distribution pipelines, 224 miles of transmission pipelines, and 3 compressor stations in Mexico; operates Mobile Gas, a natural gas distribution utility located in Mobile and Baldwin counties in Alabama; and operates natural gas storage facilities in Washington County of Alabama and Simpson County of Mississippi. The Sempra LNG segment involves in the receipt, storage, and vaporization of LNG, as well as the purchase and sale of natural gas. It operates Energia Costa Azul LNG receipt terminal in Baja California, Mexico, as well as Cameron LNG receipt terminal in Hackberry, Louisiana. The Sempra Commodities segment engages in the commodities-marketing business. Sempra Energy has operations in the United States, Canada, Mexico, Argentina, Chile, and Peru. The company was founded in 1998 and is headquartered i n San Diego, California.

Advisors' Opinion:

• [By Richard Stavros]

  Created with YCharts

  
  In addition to beating the market since the beginning of the year, diversified energy utilities, such as MDU Resources Group Inc (NYSE: MDU), Dominion Resources Inc (NYSE: D) and Sempra Energy (NYSE: SRE), significantly outperformed pure-play or predominantly all-electric utilities, such as Duke Energy Corp (NYSE: DUK) and Entergy Corp (NYSE: ETR), by as much as several percentage points (See Chart B).
  
  Interestingly, among top performers, there was no dominant strategy for exploiting natural gas demand, as these firms were involved in all aspects of the value chain–from exploration and production to distribution and storage. These companies have not only been benefiting from a natural gas surplus, but also from the pressing need to expand US energy infrastructure to deliver this newfound bounty to businesses and households.
  
  

  Chart B: Diversified Energy Utilities Outperformed Electric-Only Peers

• [By Aaron Levitt]

  CBI has been racking up new contracts like crazy. The latest include a $6 billion LNG export facility contract with Sempra Energy (SRE) and a $100 million contract to build pipelines & propane dehydrogenation unit for Enterprise Products Partners (EPD).