This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy and Forget These 5 Dividend Stocks in 2013

Stocks in this article: GE INTC WFC KO GLW

NEW YORK ( TheStreet) -- For long-term investors, higher taxes and worries about the fiscal cliff offer a chance to buy quality stocks at a discount.

The winds of change in Washington may change direction from time to time, but for long-term investors the time to enter is when there is blood on the street.

I have had more than my share of people asking for a list of stocks to own in 2013. I limited my list to stocks with large, increasing dividends that are appropriate to buy and forget about.

Predicting a year in advance is no small endeavor, especially if you want any hope of getting it right. Difficult doesn't mean impossible, however. It's difficult to predict short-term moves, too, but historical data allow us a way to peek into the markets of 2013.

Unsurprisingly, dividend-paying stocks tend to outperform over the long run. Stocks with price-to-earnings ratios under 20 also tend to outperform the latest craze. Emotion plays a short-term role in valuation, and we can measure emotion, in part, with the PE ratio.

For a company to exceed a PE ratio of 20, both earnings and revenue must be growing proportionately higher. Many people make the mistake of ignoring earnings growth and focusing on revenue. Ignoring revenue is a mistake.

The reason both revenue and earnings must be counted is because many companies are able to grow but fail to make a profit. Once growth slows (and it always does), if a company hasn't grown earnings to support an increase in stock price you quickly learn what the term "bag holder" means.

Here are the large dividend-paying stocks I think are worth owning and forgetting about in 2013. GLW Dividend Yield Chart GLW Dividend Yield data by YCharts

Corning (GLW)

Background: Corning creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries.

52-Week Range: $10.62 to $14.62

Price To Book: 0.9

Earnings Payout Percentage: 24%

Glass may not initially appear sexy, but after you look at the profits the view becomes more exciting. Corning incorporates everything you want for a long-term "buy it and forget about it" type of hold.

Corning has an oversized dividend that is likely to increase, a large R&D budget, and the company is not sitting on its laurels. Corning may begin to realize inroads into the automobile industry with products for windows and windshields.

The dividend is small enough that investors may reasonably expect increases in the payout. Corning currently has an annualized dividend of 36 cents, yielding 2.8%.

In the last month, the stock has really moved higher with a 67.4% increase. Over half the analysts covering Corning rate it as a buy or strong buy. In the last 52 weeks, the shares are about even, with a small gain of 2%. Corning has an average analyst target price of $14.62.

The last reported short interest is only 1.7% of the average trading float. Short sellers are all but avoiding Corning, which is just what we want as investors. GLW Payout Ratio TTM Chart GLW Payout Ratio TTM data by YCharts

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs