Using Math to Find Top Dividend Stocks: Intel Corporation (INTC), Altria Group Inc (MO)

If that CAGR value and the yield go above 10% I look into the company a little further. Those companies have growth, and they have a decent yield carrying them along too. If they’re pushing above 12% then they’re definitely worth a further look. I tend to avoid companies that sit below 8%.

If we were to look at Altria Group Inc (NYSE:MO) a little more, we’d see a nice, solid company that has been raising their dividend by a pretty hefty amount each year. The combination of the above calculations, the growing dividend, and some deeper diving into the financials were the reasons that I bought this stock. I never would have taken a peep inside if it didn’t hit my 10% threshold, though.

Here’s A REIT I’m Looking at Now

Following the same principles that are outlined above, I found Omega Healthcare Investors Inc (NYSE:OHI). I know I have written about this company in the past, but I have been exploring even more since then. If I use the same calculation as above on OHI then I get a CAGR of 12.29%! That’s over my threshold right away! Throw in the 6.44% yield and we’re at 18.7%!

This stock is a five star rated CAPS player, it’s liked by analysts, and the dividend is outrageous. The P/E may seem a little high, but I feel the growth that this REIT has been offering, and the incredible dividend checks they’re writing out to investors, it’s worth it.

If you don’t have a REIT in your portfolio, I would definitely check out Omega Healthcare Investors. If you have any feedback on my dividend-finding method, let me know. It’s something I’ve been playing about with and I’d love some Foolish feedback on it!

The article Using Math to Find Top Dividend Stocks originally appeared on and is written by Ash Anderson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.