Best Dividend Stocks for 2018

The following first appeared on as 10 Blue-Chip Dividend Stocks to Buy for 2018

As we enter the homestretch of 2017, it’s already time to start planning ahead for 2018. And if next year proves to be anything like this year, we should expect the unexpected. I’m a big believer in finding the best dividend stocks to buy — and particularly blue-chip dividend stocks — in virtually any market environment. But not all dividend stocks move in lockstep, and some are clearly better suited for certain environments than others.

Eight months into office, President Donald Trump and the Republican-controlled Congress have yet to agree on any major legislation or spending priorities. That has helped to keep inflation expectations and bond yields relatively low. But seeing as how we have a midterm election next November, you can bet that Trump and the congressional Republicans will be scrambling to get legislation passed to ensure they still have a job come 2019. This should favor lower-yielding but faster-growing stocks over high-yielding dividend stocks.

So, with no further ado, here are 10 blue-chip dividend stocks that I expect to outperform in 2018. They run the gamut, including everything from old-economy auto stocks to cutting-edge technology stocks, but all have a solid history of paying and raising their dividends. And I expect that to be a winning theme in 2018.

General Motors Company (GM) 

I know I might get a few howls of protest for including auto giant General Motors Company (GM) on a list of “blue-chip” dividend stocks given the company’s past failures. But under Mary Barra’s leadership, GM has focused on being a leaner, more profitable company. Earlier this year, GM unloaded its slow-growth European business to focus on its higher-growth North American and emerging market businesses.

Of course, I should also mention that GM was my pick this year in InvestorPlace’s Best Stocks for 2017 contest. As of this writing, I’m up 35% for the year and in fourth place. But we still have over two months to go in 2017, and as the great Yogi Berra observed, it ain’t over till it’s over.”

General Motors got a major shot in the arm following Hurricanes Harvey and Irma and the hundreds of thousands of cars that now need to be replaced. But the bigger picture here is that the company has abandoned its old objective of growth at all costs and has instead focused on being profitable. Meanwhile, even after its fantastic run this year, the stock is still ridiculously cheap at just eight times earnings.

At current prices, GM yields a respectable 3.5%, and I expect them to raise their payout within the next few quarters.

To continue reading, please see 10 Blue-Chip Dividend Stocks to Buy for 2018


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