Investors looking for the dividend stocks to buy today can check out 10 stocks that Morningstar considers the best ones as of early March, the firm's investment specialist Susan Dziubinski wrote in a blog post this week.
Analysts selected the stocks from the Morningstar Dividend Yield Focus Index, picking top constituents that had economic moats and were trading in the 4- and 5-star range as of March 10. These stocks are undervalued and have durable — though not necessarily the juiciest — dividends.
High dividend yields, tempting as they may be, often show up in risky sectors, industries and companies, and as a result, are not always sustainable, Morningstar Indexes chief strategist Dan Lefkovitz noted in a statement.
The companies on the list have management teams that are supportive of their dividend strategies, along with competitive advantages, or economic moats. "A moat rating does not guarantee dividends, of course, but we have seen some very strong correlations between economic moats and dividend durability," David Harrell, editor of Morningstar DividendInvestor, said in the statement.
See the gallery for 10 cheap dividend stocks to buy now, according to Morningstar. Year-to-date performance is as of March 12.
10. Ingredion (INGR)
Industry: Packaged foods
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 2.91%
YTD performance: 1.7%
9. Medtronic (MDT)
Industry: Medical devices
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 3.16%
YTD performance: -9%
8. Mondelez International (MDLZ)
Industry: Confectioners
Morningstar rating: 5 stars
Morningstar economic moat rating: Wide
Forward dividend yield: 3.53%
YTD performance: 1%
7. Clorox (CLX)
Industry: Household and personal products
Morningstar rating: 4 stars
Morningstar economic moat rating: Wide
Forward dividend yield: 4.28%
YTD performance: 9.1%
6. Blackstone (BX)
Industry: Asset management
Morningstar rating: 4 stars
Morningstar economic moat rating: Wide
Forward dividend yield: 4.31%
YTD performance: -32.8%
5. Ares Management (ARES)
Industry: Asset management
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 4.97%
YTD performance: -40.3%
4. Hormel Foods (HRL)
Industry: Packaged foods
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 5.01%
YTD performance: -3%
3. Kimberly–Clark (KMB)
Industry: Household and personal products
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 5.03%
YTD performance: -1.8%
2. General Mills (GIS)
Industry: Packaged foods
Morningstar rating: 5 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 5.77%
YTD performance: -14%
1. T. Rowe Price Group (TROW)
Industry: Asset management
Morningstar rating: 4 stars
Morningstar economic moat rating: Narrow
Forward dividend yield: 5.83%
YTD performance: -14.1%
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