Wells Fargo & Co (WFC), Apple Inc. (AAPL) Among The Best Dividend Stocks for the Next 5 Years

1. A recent statement from Apple Inc. (NASDAQ:AAPL) asserted that the board of directors is actively discussing how to return more cash to shareholders.

2. Apple Inc. (NASDAQ:AAPL) is generating far more cash than it can spend or pay out, adding to its already enormous $100-billion-plus cash hoard.

The best dividend stocks don’t always have high yields
It’s tempting for income investors to emphasize high yields in their search for the best dividend stocks, but that’s not always the best way to maximize payouts. A little bit of patience allows income investors to invest in premium-priced, first-class companies that might not have attractive dividend yields today, but are likely to have handsome yields in the future. Great companies with excellent economics enable these companies to repeatedly boost their dividends, often turning a once-small dividend yield into a handsome payout for investors who hold for the long haul.

So if you are looking for the best dividend stocks to hold in your portfolio for five years or more, count Wells Fargo and (NYSE:WFC) Apple among your options.

The article Best Dividend Stocks for the Next 5 Years originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Apple and Wells Fargo. The Motley Fool owns shares of Apple and Wells Fargo.

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