Trustworthy dividend stocks are hard to find.
But those stocks are mostly expensive and personally, I want to receive a nice dividend yield today as well as healthy dividend growth tomorrow.
There are alternatives to these expensive defensives though, and in this month’s Master Investor magazine, I looked at three of them.
My criteria were simple. Each company should:
- Operate in a defensive sector
- Have a long history of revenue, earnings and dividend growth
- Be considerably more profitable than its peers
- Not be one of the currently popular consumer staple stocks
What I found were some outstanding performers in unloved markets including car insurance, meat packing and hot pie retailing: