9 Top Stocks to Buy in 2014

As a new year approaches, we decided to ask some of our top analysts for their favorite stock idea for 2014. Here are nine companies that look compelling right now.

9 Top Stocks to Buy in 2014:  It's hard to find a positive word about IBM (NYSE: IBM) nowadays. Year-over-year revenues have shrunk for six consecutive quarters, it's losing valuable government "cloud" contracts to upstarts like Amazon Web Services, and it seems a lock to win the raspberry for "worst-performing Dow stock of the year award" for 2013.

And yet, the valuation has been punished severely for these sins and arguably more. IBM is still on track to generate in the neighborhood of $16 billion or $17 billion in free cash flow in 2013. That cash will be deployed into its ever-growing dividend (raised 19% annually over the past decade), and into its aggressive share repurchase plan that has reduced share count by 37% over that same decade. And the company still carries the tacit imprimatur of Warren Buffett, who has branded IBM as one of Berkshire Hathaway's "Big Four" investments.

Something of a contrarian "Dog of the Dow" pick, IBM currently sells for barely 10 times next year's expected earnings, well below the multiple on the average stock in the S&P 500. I expect this year's loser to be next year's winner as the company's cash deployment ratchets up the share price. A multiple expansion to, say, 12 times earnings would be gravy -- holiday gravy, if you will.

9 Top Stocks to Buy in 2014: With the calendar turning to 2014, one stock worth considering is e-commerce giant eBay (NASDAQ: EBAY  ) . I've never been one to watch the market movements and attempt to make judgments on a company from those. But the reality is that eBay has been essentially flat over the last year, while the NASDAQ is up almost 40%, and I think that is largely unjustified.

eBay has continued to deliver strong results, and the most recent quarter was no exception. Through the first nine months of the year, its operating income had risen 16.5% relative to the first nine months of last year. Not to mention its payments business (PayPal) continues to watch its revenues grow by more than 18% year over year, and eBay's total quarterly revenue growth has consistently stood at 14%.

So the company is continuing to deliver impressive growth and results, but its price doesn't reflect that. Consider that its trailing price to earnings ratio currently stands at 25.5, which is almost identical to Costco and below the 29 held by Google. I understand that's not exactly a fair comparison, but eBay seemingly still has quite a potential growth runway ahead of it.

The last thing I will note is that many people think eBay is simply a place where people bid on products, but excluding autos, 75% of its transactions were made at a fixed price. Amazon is the clear leader in the rapidly expanding e-commerce space, but eBay has a commanding position in the No. 2 spot.

9 Top Stocks to Buy in 2014: The Fed might slowly be taking away the punch bowl, but that shouldn't taper the prospect that 2014 will be the year that the housing market finally hits its stride. In fact, The Fed's tapering move just might be what jump-starts the still sluggish housing market. That's why I think homebuilders should do well in 2014, with PulteGroup (NYSE: PHM  ) being the stock I'd buy for 2014 and beyond.

The housing market is currently pretty low on inventory, which is one reason home prices have trended higher. That trend will only continue as we see the end to historically low mortgage rates. Buyers need to move fast in order to lock in these low rates.

Where PulteGroup fits into the equation is that its multi-brand strategy has it well-positioned to really deliver as housing recovers. For example, its Centex brand focuses on first-time buyers. These buyers have been cautious to get into the market, but seeing an end to historically low mortgage rates will likely convince many that the time to buy is in 2014. At the same time rising home prices nationwide are freeing up many current homeowners to sell in order to move up into a nicer home. The Pulte Home brand caters to move-up buyers, while the Del Webb brand focuses on those in the active adult marketplace that are now in a better position to retire and enjoy life.

Bottom line, PulteGroup's multi-brand strategy, when combined with its renewed focus on creating shareholder value, has it well-positioned to deliver exceptional returns in 2014.

9 Top Stocks to Buy in 2014: If there's one stock I'd consider buying for 2014, that stock would be Kinder Morgan (NYSE: KMI  ) . As the largest natural gas transporter and storage operator in North America, Kinder Morgan is well-positioned to profit from increasing demand for natural gas. Between coal power plant shutdowns, an aging fleet of nuclear power plants, and the inherent inefficiency and unreliability of many renewable energy sources, natural gas is the most logical candidate for new power generators.

In addition to the electric generating capabilities, natural gas is generally the cheapest and most common means to heat homes. It's also gaining significant traction as a transportation fuel, especially among fuel-hungry trucks. Regardless of how and where it's used, natural gas needs to get from the shale fields and other sources to where it's needed, when it's needed. That's where Kinder Morgan shines.

The business case is clear, and the investment case is strong enough that I own shares of Kinder Morgan in the real-money Inflation-Protected Income Growth portfolio. Take a business model at the center of the energy economy, and add a reasonable valuation, a covered and growing dividend, and a balance sheet without too much leverage, and the result is a company whose stock is worth buying for 2014.

9 Top Stocks to Buy in 2014: Liberty Global (NASDAQ: LBTYA  ) is the largest cable company in Europe. It is heavily laden with debt, generates GAAP losses, pays no dividend, and is exposed to Europe's economic woes. For those reasons, you might not be interested at first glance. But, if you dig a bit deeper, the company actually looks very attractive. It's got great leadership following a proven strategy, and it's adding new subscribers and revenue per subscriber.

John Malone, the famous "cable cowboy," is Liberty Global's chairman, and the company is following the same playbook that Malone used to build Tele-Communications into the largest cable provider in the United States, before it was sold to AT&T in 1999. Liberty Global is using cheap debt to acquire smaller cable systems. While it doesn't generate GAAP earnings, the company does generate healthy amounts of free cash flow -- over $3 billion in the past year. Malone is using that cash to upgrade its cable system and aggressively repurchase Liberty Global shares, both of which should generate long-term value for shareholders. Using this same basic strategy, Malone generated more than 30% compound annual returns for Tele-Communications shareholders.

And, despite the economic gloominess in Europe, Liberty Global's business is doing well. Liberty Global is on pace to add 1 million new subscribers this year. Its current customers are buying more services -- 40% of subscribers now pay for a "triple-play" package, up from 30% a year ago. This has driven a 29% increase in revenue per customer.

9 Top Stocks to Buy in 2014: Despite nearly doubling the gains of the S&P 500 this year, there are several upcoming catalysts for Momenta Pharmaceuticals (NASDAQ: MNTA  ) that could lead to even bigger gains for investors in 2014. The company's competitive advantage rests in its ability to analyze, characterize, and design complex molecules -- which speeds development time and reduces costs. The MIT rollout proved its novel approach to drug development in 2010 with the approval of its first product, a generic version of Enoxaparin Sodium Injection, which pushed operating margins to 63% on revenue of $283 million in 2011! Unfortunately, competing generics have since eroded the edge for the company's only product.

Momenta will swing back into profits next year if it can market its second product, a generic version of Teva's Copaxone. Investors were originally waiting for the last Copaxone patent to expire in September 2015, but a summer decision by the Court of Appeals may have expedited the Food and Drug Administration's review date to May 2014. While Teva intends to go to the Supreme Court with an appeal and Momenta isn't the only company with a generic drug ready, simply becoming profitable or even breakeven would smooth out the ride on the road to disruption for investors. I think it's likely generic versions will get the green light next year, which makes Momenta -- with $250 million in cash and an impressive and relatively undervalued pipeline -- a long-term buy-and-hold company at today's prices.

9 Top Stocks to Buy in 2014: My one stock for 2014 is Universal Display (NASDAQ: OLED  ) . The company makes organic light-emitting diodes (OLEDs), used to light the displays of consumer electronic devices. Much of the company's history has been devoted to R&D, providing the behind-the-scenes technology for Samsung's Galaxy smartphones in exchange for semi-annual royalty payments.

But UDC is finally seeing the light at the end of the tunnel. Commercial material sales have begun to meaningfully contribute to the top line – increasing 176% year-over-year and 11% sequentially during the 3^rd quarter. The company reported a solid profit, even without the royalty (which gets paid in 2Q and 4Q). Universal Display is breaking into the market in multiple ways – partnering with the lighting division of Philips, providing materials for a new Samsung OLED television, and is even rumored to be in an upcoming "iWatch" from Apple! OLED is definitely one to keep an eye on in 2014.

9 Top Stocks to Buy in 2014: I'm offering up the latest addition to the real-money portfolio I manage for The Motley Fool, Lindsay (NYSE: LNN  ) . It sells mechanized irrigation systems to farmers. You've probably seen these while driving through or past croplands -- big, wheeled piping systems spraying water onto crops.

Irrigating this way is more efficient than gravity irrigation (flowing water across fields), resulting in higher crop yields while using less water (1/3 – 1/2 less). Over the past decade, mechanized irrigation in the U.S. has grown from 35% to 46% penetration, while gravity irrigation has fallen from 50% to 39%.

The opportunity comes from continued penetration gains domestically and international growth. Worldwide, 90% of cropland under irrigation uses gravity irrigation. Thanks to a growing population, farmers will need to produce more food; and thanks to limited water supplies, they'll need to do it while using less water. Replacing gravity irrigation with mechanized irrigation is a big step in that direction.

In addition, Lindsay is developing and selling "smart" systems that use feedback from sensors to distribute irrigation to where it's needed. This makes irrigation even more efficient.

An investment in Lindsay plays into three big, global trends: the two mentioned above (growing population and limited water) and more droughts. With four severe droughts in the last eight years here in the U.S., farmers "don't want Mother Nature to control our destiny anymore."

9 Top Stocks to Buy in 2014: 2013 proved a record year for Tesla Motors (NASDAQ: TSLA  ) , with the stock soaring more than 300% year-to-date. However, 2014 holds even more promise for the electric-car maker. Tesla continues to see strong demand for its Model S cars and is ramping up production to meet that demand. In fact, Tesla CEO Elon Musk says the company is on track to hit an annualized rate of deliveries that exceeds 40,000 cars per year by late 2014. Global demand for Tesla's cars is also accelerating at a rapid clip.

While European sales are already strong, Tesla is just getting started in China and other parts of Asia. The EV maker began taking Model S reservations in China last quarter, and plans to begin deliveries there during the first quarter of 2014. As the world's largest market by sales of premium sedans, China is an exciting piece of the puzzle for Tesla going forward.

Another important catalyst for Tesla is the ongoing expansion of its supercharger network. There are now 34 supercharger stations in the United States, and six so far in Europe. Tesla is now on track to have stations covering 80% of the U.S. population and parts of Canada as soon as next year. Moreover, Tesla plans to cover 100% of the population of Germany, the Netherlands, Switzerland, Belgium, Austria, Denmark, and Luxembourg with superchargers by the end of 2014. This is a significant part of the company's value proposition and it should help drive Model S sales in the year ahead. With these catalysts and more on the horizon, Tesla is a stock I want to own in 2014 and many years to follow.

Of the 165 stocks in the Supernova universe, Motley Fool co-founder David Gardner is on a mission to find just ONE: Between now and Jan. 30, 2014, you're invited to "hit the road" with the Supernova team to find the ONE STOCK most deserving of a large, real-money investment to kick off 2014!

5 Top Stock Picks to Start the Summer in 2014

Our list of stocks to buy for this month all pack a punch in three different ways.
First, following my prediction that retail stocks would be the place to be for 2012, June’s best stocks are those whose bread-and-butter is the American consumer.
In addition, investors are increasingly favoring companies engaged in aggressive stock buyback programs, so I’ve included a few of our biggest share repurchase players in this list.
Finally, with first-quarter earnings under our belt, this list of  stocks represents some of the biggest winners from the past earnings season.
In the current narrow market, the following five stocks represent some of the best buying opportunities out there.

5 Top Stock Picks to Start the Summer in 2014 1) Alexion Pharmaceuticals

Alexion Pharmaceuticals (NASDAQ:ALXN). Ever since I first highlighted ALXN in October, this stock has been on a steady climb, gaining nearly 40%.
Sales of Alexion’s blood disorder drug Soliris continue to gain, helping to fuel strong first-quarter operating results. Profits boomed 69% to $45.5 million, or 45 cents per share, and net sales jumped 47% to $244.7 million. Better yet, Alexion was able to beat the Street earnings view by 15%.
Looking ahead, management remains bullish; it has raised its 2012 sales guidance to between $1.07 billion and $1.09 billion and its earnings guidance to a range of $1.65 and $1.75 per share. This also tops analyst estimates of earnings of $1.74 per share on $1.07 billion in sales.

5 Top Stock Picks to Start the Summer in 2014 2) Dollar Tree

Dollar Tree (NASDAQ:DLTR) has been on a great run since October, gaining more than 30%. But there’s plenty of upside left to this stock considering its $1.5 billion buyback program and its most recent earnings announcement.
The company recently reported record first-quarter sales and earnings. Earnings jumped 16% to $116.1 million, or $1.00 per share. Over the same period, net sales increased 11% to $1.72 billion. Although the company’s second-quarter guidance just missed analyst expectations, I’m encouraged that Dollar Tree raised its full-year guidance.

5 Top Stock Picks to Start the Summer in 2014 3) O’Reilly Automotive

O’Reilly (NASDAQ:ORLY) may have started out as a mom-and-pop auto parts business, but with a $500 million share repurchase program currently under its belt, this company has clearly grown into a major force in the Auto Parts industry.
This company recently announced stunning first-quarter operating results. To start, compared with Q1 2011, net income jumped 44% to $147.5 million, or $1.14 per share. Adjusted earnings weighed in at $1.14 per share, which topped the $1.04 consensus by 10%. Over the same time frame, sales rose 11% to $1.53 billion, beating analyst estimates by 3%.
Looking ahead to the second quarter, the company expects earnings to weigh in between $1.13 and $1.17 per share, while the Street sees $1.17 in earnings per share. The company also raised its 2012 earnings guidance to $4.47 to 4.57 per share, compared with the Street view of $4.51 per share.
5 Top Stock Picks to Start the Summer in 2014 4)  Ross Stores
Ross (NASDAQ:ROST) is a bargain apparel and home fashion chain that is known for letting its customers “Dress for Less.” And, as shoppers continue to be judicious with their spending, this business model is clearly paying off.
Thanks to robust sales growth across many of its markets, the company reported a 21% year-over-year jump in profits. Over the same period, total sales jumped 14% to $2.36 billion. Looking forward, the company plans to more-than double its store count and buy back $450 million of its stock in 2012.
I fully expect Ross to continue to show relative strength into the summer months.

5 Top Stock Picks to Start the Summer in 2014 5) Verisk Analytics

Verisk (NASDAQ:VRSK) is a newcomer to our list that I added in April, and it’s already posted a tidy little gain.
One reason that this is such an exciting company is that it recently expanded its business operations to include crime-related risk management. Thanks to a series of product launches and acquisitions, Verisk now has national crime databases at its disposal — opening Verisk up to new clients and increasing its attractiveness with existing customers. Plus, it should be accretive to next quarter’s earnings.
In the most recent quarter, Verisk posted 11% sales growth and 13% earnings growth; the company also topped the consensus earnings estimate by 2%. Verisk is also in the middle of an aggressive stock buyback program; the company plans on repurchasing an additional $267.9 million of its own shares.

Best Stocks To Invest In 2014

  

Best Stocks To Invest In 2014: Best muni bond fund bets

Even if the most dire predictions about the current muni bond market come true, and we see $100 billion or more in defaults, that’s still a drop in the a multi-trillion dollar bucket.

True, fiscal coffers are percolating a thin gruel of anemic revenue. Also true, bond insurers that used to provide a safety net for most munis are basically gone thanks to 2008’s maelstrom.

Also true; most muni bonds skew toward the longer-end of the more interest rate sensitive duration spectrum (a function of being tied to long- term infrastructure projects).

But, muni bonds are backed by the ability to raise taxes; no small feature. Much of the risk of owning muni bonds that are weakest is ruled out by investing in muni bond funds where manager track records are strongest.

And, finally, one can address the interest-rate sensitivity issue by investing in a diversified, duration flexible muni bond fund or focusing on shorter duration muni bond funds.

The best way to pursue the upside is through a diversified basket of actively managed munis.

The shorter duration Fidelity Intermediate Muni Bond Fund (FLTMX) is one choice for taxable accounts.

I also like Fidelity Tax-Free Bond (FTABX) paired with a non-muni bond option that offers rubies in the current emerging market rubble, Fidelity New Markets Income (FNMIX).

Best Stocks To Invest In 2014: Rhodes: Trader calls for correction

Given the market's current overbought condition, traders believe it is wise to raise some cash. We agree. We also sense that there is a change in the air regarding the rise in commodity prices.

We've looked for at least a 20% correction in commodities sometime this year. Certainly “now” seems to be at least an interim top to be sure.

Perhaps the catalyst for this decline stems from Goldman Sachs commodity strategist Jeffrey Curriehas, who has now decided to close his profitable long commodities trade -- long a basket of crude oil, copper, cotton, soybeans and platinum or the “CCCP trade as it has become known.

Also, he is exiting long copper and platinum positions because he believes the risk-reward no longer favors a bullish stance.

However, we’ll go on to note that he believes that on a 12-month horizon – the “CCCP trade” continues to show upside potential; but the near term risk-reward no longer favors being long the trade.

Meanwhile, the S&P has clear resistance at 1340 and the NASDAQ 100 at 2360; if those levels are taken out to the upside, then we’ll assume that another leg higher is underway.

However, recent weakness suggests a correction is underway towards more established support levels at 1250 and 2189.

But let us note right away, that if the NASDAQ 100 does manage to test 2189 – it will have broken key neckline support of a larger bearish “head & shoulders” topping pattern. Thereby targeting 2000-to-2050…which would be a rough - 10% to -15% correction.

Best Stocks To Invest In 2014: Media buys: CVC & CMCSK

The rough-and-tumble media group gained new investor respect in late 2010 and two of them now offer solid buying opportunities following the market correction.

Cablevision Systems (CVC), the fifth largest U.S. cable TV provider, plans to spin off its Rainbow Media business—possibly unlock- ing added shareholder value.

It is also strong in high-speed data and voice services for small and medium-sized businesses.

With its price softening a bit last week, but with prospects for earnings of $2.50 per share in 2012 and $3-plus in 2013 still intact, our 12-month price target from today’s 34 is around 45.

Top Dog in the media group is Comcast (CMCSK). The company with 40 million video subscribers in 39 states, 17 million Internet subscribers and over 8 million phone subscribers.

In January it took control of NBC Universal (from GE) just as the advertising market began showing renewed strength.

But according to Zacks, the two analysts tracking CMCSK are projecting 17% earnings growth and a 31 price target. Our target for CMCSK from today’s 23-plus is 35. The recently raised dividend provides a 2% yield.

Best Stocks To Invest In 2014: MIND C.T.I. Ltd. (MNDO)

Israel stands above all other nations when it comes to the high-tech industry, and one of my favorite emerging stocks in this sector is  MIND C.T.I. Ltd. (MNDO); this is a microcap Israeli tech stock with a high-yield dividend over 9 percent.

With over ten years in the technology sector, MIND has quickly evolved into a leading global provider of real-time, product-based mediation, billing and customer care solutions for voice, data, video and content services.

With a market cap of $61.8 million, little MNDO doesn’t show up on many traders’ radar screens - especially because it’s thinly traded, averaging just over 136,700 shares traded daily.

That makes it exactly the type of small cap stock that we should keep an eye on and think about buying when the opportunity arises. We want to get into these types of companies before they receive significant analyst coverage.

In MNDO’s case, there are other strengths besides just a lack of coverage. The company’s income statement looks particularly strong. Total revenues for 2010 were close to $20 million, an increase of 14 percent year over year.

Growth in revenues helped to increase operating income from $2.2 million in 2009 to $4.8 million, or 25 percent of revenues, in 2010. Net income was $44.9 million or $0.26 per share.

The balance sheet also looks strong with a total cash position of $20.5 million at the end of 2010. The company boasts profit margins of 24.4 percent and return on equity of 20.8 percent. Moreover, MNDO continues to grow its customer base at a rapid pace.

The company recently took a major step towards catching institutional attention with the announcement that they have joined forces with Israel’s first mobile operator, Pelephone communication. Pelephone has over 2.8 million subscribers.

For the investor who wants the potential for outsized capital gains in small cap stocks that pay big dividends, MNDO is worth further research.

Best Stocks To Invest In 2014: Stillwater Mining (SWC)

Stillwater Mining (SWC) is the largest producer of platinum group metals (PGMs) in North America and the only significant producer in the US.

In 2010, the company produced a total of 485,000 ounces of PGMs including 374,000 ounces of palladium and 111,000 ounces of platinum from its Stillwater and East Boulder mines in southern Montana.

Palladium prices were at depressed levels for much of the period between 2002 and 2008, and Stillwater wasn’t in a position to expand operations or make money.

But with palladium prices now well over USD700 per ounce, the miner is once again solidly profitable.

Stillwater’s expansion projects are slated to push the company’s total output up by 40 percent over the next 4 years to roughly 700,000 ounces of PGMs per year.

And roughly three-quarters of that output will be palladium, the PGM with the strongest near-term growth prospects and tightest supply-demand conditions.

Stillwater trades at just 13 times projected 2011 earnings and should be able to grow profits by 20 to 30 percent over the next few years as it brings new production on-stream to take advantage of rising palladium prices.

Stillwater Mining, a new addition to the Metals and Mining Portfolio, rates a buy under 24.50.

Best Stocks To Invest In 2014: Global X FTSE Norway 30 (NORW)

If you are looking for an investment safe haven, Norway shuld be high on your list; while much of Europe is mired in fiscal turmoil, Norway -- which is not a memeber of the EU -- seems to have matters well in hand.

It is the world's seventh largest oil exporter and, unlike most countries in the world, actually carries a budget surplus that is estimated to be about 10% of GDP this year.
The common approach to national budgeting in much of the world seems to be spending money as long as it can be borrowed.

But Norway's budget conservatism and half-trillion dollar wealth fund means it has an extremely low default risk. In real market-cost terms, the cost of insuring against Norwegian default is the lowest in the world.

Also in Norway's favor is that its inflation and unemployment are low and its currency, the krone, is strong.

The Global X FTSE Norway ETF (NORW) is realtively new, having been trading since September 2010. The fund attempts to emulate the FTSE Norway index, a market capitalization-weighted index designed to reflect board-boased equity performance of the country.

The top three sector weightings are energy (40.5%), financial services (22%) and basic materials (10%). The annual expense ratio is 0.50%.

Best Stocks To Invest In 2014: Best Stocks To Invest In 2012: T. Price U.S. Large-Cap Core (TRULX)

T. Price U.S. Large-Cap Core (TRULX) has been managed since its inception in mid-2009 by Jeff Rottinghaus; the fund currently has less than $30 million in assets.

Rottinghaus seeks to fill the portfolio with 50 to 55 large-cap stocks rated highest by Price’s extensive cadre of equity analysts, who tend to be divided by sector and industry.

The criteria to favor one stock over another differ among various sectors: in technology, Rottinghaus says, the firm’s analysts tend to prefer companies going through very favorable cycles for new products and services. In the consumer staples area, on the other hand, valuation plays a greater role.

In general, however, the analysts favor modestly priced, high-quality companies that are gaining market share in growing industries.

For cyclical stocks, they look for companies beaten down due to a cyclical trough but likely to benefit mightily once the cycle turns, thanks to limited competition, engendered by high barriers to entry by competitors.

For all their picks, they spend a lot of time attempting to ascertain management quality.

In general, Rottinghaus favors GARP companies (growth at a reasonable price) while also devoting some of the fund’s assets to more highly valued companies thought to have excellent prospects.

Like most other equity funds at Price, U.S. Large Cap Core has a bias toward quality as indicated by low debt, high barriers to entry and strong return on capital. Rottinghaus hopes this would cushion the fund in a bear market.

4 Top Dividend Funds to Invest in 2014

With the grueling stock market fall, investors are certainly looking for defensive investments. The good news is that there are many high-quality companies — such as AT&T (NYSE:T), Pfizer (NYSE:PFE) and Coca-Cola (NYSE:KO) — that are paying juicy dividends. In many cases, the yields are higher than 30-year Treasury bonds.
And yes, one effective way to invest in dividend-paying stocks is to buy a mutual. So here’s a look at some top offerings:

4 Top Dividend Funds to Invest in 2014 - Hartford Dividend & Growth A Fund

The Hartford Dividend & Growth A Fund (MUTF:IHGIX), which has $6.2 billion in assets, is primarily focused on mega-companies. Top holdings include AT&T, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), IBM (NYSE:IBM) and Wells Fargo (NYSE:WFC). What’s more, the overall yield is 1.29%.
Because of the focus on quality and stability, the fund’s portfolio manager, Edward Bousa, has been able to deal quite effectively with market volatility.

4 Top Dividend Funds to Invest in 2014 -

Franklin Rising Dividends A Fund

Founded in 1947, Franklin Resources (NYSE:BEN) has built a powerhouse in mutual funds. Then again, it has been able to post solid long-term returns for its investors.
One of the standouts is the Franklin Rising Dividends A Fund (MUTF:FRDPX), which got its start in 1987. In fact, the fund’s portfolio manager, William Lippman, still is at the helm.
Basically, the strategy is to focus on companies that have consistently increased their dividends. And yes, there must be a compelling case that the strength will continue for the long haul. In other words, the portfolio has many companies that generate large amounts of cash flows and have low debt levels.

Invesco Diversified Dividend Y Fund

Meggan Walsh, who manages the Invesco Diversified Dividend Y Fund (MUTF:LCEYX), looks for investments that have growth ramps yet are selling at discounted valuations. Actually, in light of the recent market plunge, these opportunities are certainly easier to find.
Keep in mind that dividends are not the only requirement. For example, Walsh looks for companies that also have aggressive share buyback programs. Some of the top holdings include SunTrust Banks (NYSE:STI), Kimberly-Clark (NYSE:KMB) and Johnson Controls (NYSE:JCI).
The fund also has a healthy dividend payout, coming to about 2.13%.

4 Top Dividend Funds to Invest in 2014 -

Vanguard Dividend Growth Fund

The Vanguard Dividend Growth Fund (MUTF:VDIGX) invests primarily in large companies that have strong track records of paying dividends. This certainly helps to provide downside protection.
As should be expected, the expense ratio is at a low 0.34%, which helps to boost returns. Consider that the overall dividend yield is 1.99%.
The fund also avoids aggressive trading. That is, the turnover is only 17% per year.
Tom Taulli is the author of various books, including “All About Commodities” and “All About Short Selling.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.
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