5 Best Performing Dividend Yield Stocks [Kimberly Clark Corp, Merck & Co., Inc., Garmin Ltd., Johnson & Johnson, Lockheed Martin Corporation]


Garmin offers one of the highest dividend yields in the tech products industry at 3.3%. And over the last five years, it’s managed to grow its annual dividend payout by 20% annually.

As GPS devices become standard in new cars, there is some concern that Garmin’s products will be irrelevant. However, its products are used for a variety recreational activities and not just auto navigation.

The company continues to expand and develop its portfolio. Its outdoor and fitness businesses have continued to grow over the last few years. Together, the two segments make up a third of the company’s business. A key area of interest for in the outdoor and fitness area that Garmin is focusing on is the action camera market. This is expected to be a billion market.

Merck (NYSE: MRK)

Merck is just one of many global pharma companies. But it’s also one of the biggest. Its dividend yield is 3.1%. That’s well above the pharma industry average of 1.7%. But it’s not just the dividend that makes Merck intriguing.

Emerging markets remains a key growth market for Merck, one that can help it to continue growing revenues. In emerging markets, the likes of cardiovascular disease and diabetes continue to be major issues. These are areas that Merck has strong products offerings. In 2013 it opened a China-based manufacturing facility. The plan is to commercialize pediatric and adult vaccines in the country.

Lockheed Martin (NYSE: LMT)

Lockheed Martin might not be the most obvious choice for market outperformance. The government budget cuts from last year’s sequestration put a damper on all companies that receive payments from the U.S. government.

However, the industry has gotten some relief. President Obama signed into law the $1.1 trillion Omnibus spending plan. This bill backed spending for one of Lockheed Martin’s key products, F-35 jets, through 2016.

Lockheed remains the largest defense contractor in the U.S. The company is sitting on a backlog of over $80 billion as of the end of 2013. That’s well above its $50 billion market cap.

The defense industry will continue to generate high levels of cash flow. Lockheed’s dividend yield is 3.3%. Over the last five years, Lockheed has grown its annual dividend payment by an annualized 20%. And it has raised its annual dividend payout for 11 straight years.


Investors love dividends. But why not invest in dividend stocks that can outperform the market? The select stocks above have strong dividends and are setup to outperform the market in 2014. This is a great combination for investors looking to build wealth.

This article is brought to you courtesy of Marshall Hargrave from Wyatt Research.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *