6 Stocks With Double-Digit Gains and Big Dividends

(Adds that McDonald's gained a record-low rate on a 30-year corporate bond offering.)

BOSTON ( TheStreet) -- Do you want to own stocks with consistent long-term returns so you can "buy 'em and forget 'em," as some professional investors say?

Then stop chasing the latest skyrocket and adopt the more conservative, but nonetheless fruitful, double-barreled approach, that of buying stocks of high-quality companies with a record of steadily increasing dividends and multiyear, double-digit share-price gains.

There aren't a lot that fit the bill.

We found six stocks of highly respected companies with at least double-digit annual share-price advances over three years, coupled with better than 26% five-year dividend-growth rates.

The benchmark S&P 500 is up 5.6% this year and several of these companies' stocks are not keeping up, but they shouldn't be judged by one month's -- or even one year's -- share-price performance.

Rather, their long-term records, which include corporate histories with no serious management miscues, should hold them in good stead, especially when the compounding of growing dividends is coupled with the share-price increases.

Some of these stocks are household names, such as International Business Machines ( IBM) and McDonald's ( MCD). But trucking industry broker Landstar Systems ( LSTR), and artificial knee and hip joint maker Stryker ( SYK) aren't widely known.

Here are the six stocks with five-year dividend growth of at least 26% and double-digit share-price appreciation over the past three years:

6. Stryker ( SYK)

Company profile: Stryker makes medical devices and equipment used primarily in orthopedic procedures, such as reconstructive implants of knees and hips.

Investor takeaway: Its shares are up 11% this year and have a three-year average annual return of 11%, giving it a market value of $21 billion. The shares have a five-year dividend growth rate of 42% and its current yield is 1.55%. It pays a 21.25 cent per quarter dividend.

S&P has a "buy" recommendation on its shares with a four-star rating out of a possible five.

5. International Business Machines ( IBM)

Company profile: IBM is one of the world's largest information-technology companies. Its product line includes system hardware, infrastructure software, outsourcing, and systems integration services. Customers tend to stick with Big Blue after spending on one of its systems, which means steady, recurring revenue.

Investor takeaway: Its shares are up 4% this year and have a three-average annual return of 30%, resulting in a market value of $228 billion. IBM's shares have a five-year dividend growth rate of 26%. The projected dividend yield is 1.57%, and it's paying 75 cents per quarter.

S&P has its shares recommended "strong buy," with a five-star rating, its highest.

4. Lowe's ( LOW)

Company profile: Lowe's is the second-largest home-improvement retailer in the world and operates about 1,700 stores throughout North America and Mexico.

Investor takeaway:
Its shares are up 6% this year and have a three-year average annual return of 15%, resulting in a market value of $34 billion. The company's dividends have grown by 31% over the past five years. The projected yield is 2.09%. Lowe's pays 14 cents per quarter.

S&P recently downgraded its shares to "sell," saying the 50% run-up since August was based on an anticipated recovery in the housing market, which now appears to still be on the horizon.

3. Landstar System ( LSTR)

Company profile: Landstar is a third-party logistics provider focused on over-the-road truck transportation to shippers as one of the largest U.S. truck brokers. It has built a vast network of shippers, storage providers and independent agents.

Investor takeaway: Landstar's shares are up 8% this year and have a three-year average annual return of 14%, resulting in a market value of $2.5 billion. Its dividend has grown 31% over the past five years. The current yield is 0.43% and it now pays 5.5 cents per quarter.

S&P has a "buy" recommendation on its shares with a four-star rating out of a possible five.

2. BlackRock ( BLK)

Company profile: BlackRock provides investment-management services primarily for institutional investors. The firm has more than $3.5 trillion in managed assets.

Investor takeaway: Its shares are up 3% this year and 19% over the past three months, and they have a three-year average annual return of 21%, resulting in a market value of $33 billion. BlackRock's dividends have grown 27% over the past five years. The current yield is 2.99% and it pays $1.375 per quarter.

S&P has its shares rated "hold" as the company's performance fees and asset inflows are "lighter than we expected due to a longer-than-anticipated solution to the European debt crisis."

1. McDonald's ( MCD)

Company profile: McDonald's is one of the world's largest fast-food companies and one of its most recognized brands. It gets revenue from company-owned restaurants, franchise royalties and licensing pacts. At the latest count, there were 33,100 locations in 117 countries.

Underscoring its strength in the eyes of investors, last week McDonald's gained a record-low rate on a 30-year bond offering as part of its two-part $750 million debt sale. It sold a $500 million tranche of 3.70% coupon bonds, which priced to yield 3.78%, or 0.80 percentage point above the Treasury rate.

Investor takeaway: Its shares are down 1.7% this year, but up 7.3% over the past three months. They have a three-year average annual return of 22%, resulting in a market value of $102 billion. McDonald's dividend has grown by 28% over the past five years, and its current yield is 2.84%, based on a quarterly dividend rate of 70 cents per share.

S&P has its shares recommended "strong buy," with a five-star rating, its highest.

>>To see these stocks in action, visit the 6 Stocks With Double-Digit Gains and Big Dividends portfolio on Stockpickr.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.