5 Dividend Champs to Buy for 2013

To be clear, Garmin's getting squeezed by the automotive GPS market too, but consumer demand for in-car navigation and entertainment certainly isn't falling off. This firm's superior tech should enable it to shove its way into the lucrative OEM market.

Financially, Garmin is a gem. The firm boasts no debt and around $2.8 billion in cash and investments. Those assets cover more than a third of Garmin's market capitalization right now, erasing a big chunk of the risks associated with this stock. A history of strong cash flow generation gives Garmin more than enough wherewithal to fund its huge dividend payout this year.

Darden Restaurants

Darden Restauratns (DRI) is another high-yield name that's making our list of dividend champs. Right now, Darden pays out a 50-cent quarterly dividend that works out to a big 4.2% annual yield. Try getting that sort of return from treasuries right now.

Darden owns full-service casual restaurant chains such as Red Lobster, Olive Garden and LongHorn Steakhouse -- more than 2,000 North American locations in all. One key to DRI's success has been its willingness to step into new dining concepts; the acquisition of higher-end Capital Grille and the new healthier Seasons 52 brand are two examples of how DRI isn't just diversifying cuisine to achieve growth. And in spite of a business that's wholly tied to the ebb and flow of consumer discretionary spending, Darden actually grew its revenues during the Great Recession.

International growth provides a big opportunity for Darden in the next few years -- and with minimal risk. The firm has penned franchise deals with operators in markets such as Latin America and the Middle East, and it's actively seeking partners in other regions. The combination of brand exposure and cash inflows without the need to carry the capital burden or regulatory complications of international restaurants is very attractive indeed.

Harman International

It's been a fairly flat year for audio electronics maker Harman International (HAR), but as the broad market continues to push higher, a rising tide should help to spark buying in this mid-cap audio stock. Harman owns a deep portfolio of audio brands, including Harman Kardon, Infinity, JBL and AKG. While the firm's 1.37% dividend yield is hardly worth writing home about, it's dramatically outpaced inflation since being re-initiated in 2011.

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