CVS Caremark Corporation (CVS), Walgreen Company (WAG): Dividend Stocks to Take Into 2014

Even as it matures, Exxon Mobil Corporation (NYSE:XOM) continues to replenish its reserves; it replaced 115% of its reserves in 2012. Meanwhile, it grew earnings by 9% last year — strong growth coming off of a decent year in 2011. More importantly, the company paid out $44 billion in dividends over the last five years — almost 11% of the company’s market capitalization. Despite large dividend payments, the company’s payout ratio sits at only 23% — providing ample coverage in case oil prices plunge. After having raised its dividend in each of the last 20 years, ExxonMobil continues to be a good stock for dividend investors to buy and hold.

Bottom line

Dividend investors should not reach for yield; instead, they should look for strong companies that have a long history of paying a good dividend. CVS Caremark Corporation (NYSE:CVS), Walgreen Company (NYSE:WAG), and Exxon Mobil Corporation (NYSE:XOM) fit that profile.

Ted Cooper has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Dividend Stocks to Take Into 2014 originally appeared on Fool.com.

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