Some investment porn on dividend stocks from Investor's Business Daily today...DYOD!!!

IBD screened for stocks offering more than the S&P 500's 1.6% dividend yield, while outperforming the index over the past five years. That's a high bar, which relatively few stocks meet, especially given choppy stock markets in the past year.

Both share-price increases and attractive payouts play a part in successful dividend investing.

## Best Dividend Stocks For 2021: Top 5

| **Symbol** | **Yield ** | **Five-year return ** |

**S&P** | **SPY** | **1.5%** | **90%** |

Best Buy | BBY | 2.3 | 274 |

Texas Instruments | TXN | 2.3 | 213 |

Broadcom | AVGO | 3.0 | 204 |

JPMorgan Chase | JPM | 2.4 | 152 |

T. Rowe Price | TROW | 2.5 | 133 |

For investors looking for the best dividend stocks to buy and hold in 2021, several metrics matter.

Dividend stability reflects a long and steady track record of payouts. Dividend growth points to a company in sound financial health, working hard to make its stock more attractive to new and existing

income investors.

A company with stable earnings is more likely to pay steady — and perhaps rising — dividends. The quality of earnings matters too.

The dividend payout ratio (dividend per share divided by earnings per share) can help you assess whether the dividend is sustainable. A ratio greater than 100% may warn of a potential cut.

Not all dividend stocks are smart investments. Use the information below as a starting point for your own research.

## Best Dividend Stocks: Best Buy

The tech retailer has paid regular dividends since 2004.

**Dividend yield**: Best Buy stock has a $2.80 annual dividend, yielding 2.3%.

**Five-year return**: BBY delivered a 274% compound stock market return over the past five years (not including reinvested dividends), vs. 90% for the S&P 500, as tracked by SPDR S&P 500 ETF (

SPY).

**Dividend growth rate**: 19%, measured over the past five years.

**Dividend stability factor**: 17, on a scale from zero (most stable) to 99 (most volatile), measured over the past five years.

**Dividend payout ratio**: 36%.

**Earnings stability factor**: 4, on a scale from zero (most stable) to 99 (least stable). Best Buy grew earnings per share (EPS) an average 18% over the past three years, the

IBD Stock Checkup tool shows.

## Best Dividend Stocks: Texas Instruments

The chipmaker boasts 16 years in a row of growing dividends. It first declared a dividend in April 1962.

**Dividend yield**: Texas Instruments stock bears a $4.08 annual dividend, yielding 2.3%.

**Five-year return**: 213%.

**Dividend growth rate**: 23%.

**Dividend stability factor**: 3.

**Dividend payout ratio**: 64%.

**Earnings stability factor**: 7. Over the past three years, Texas Instruments grew EPS 5% annually.

## Best Dividend Stocks: Broadcom

The semiconductor and enterprise software maker has grown dividends nine years in a row.

**Dividend yield**: Broadcom stock offers a $14.40 annual dividend per share, for a 3% yield.

**Five-year return**: 204%.

**Dividend growth rate**: 72%.

**Dividend stability factor**: 19.

**Dividend payout ratio**: 159%.

**Earnings stability factor**: 4. Over the past three years, Broadcom grew EPS 7% annually.

## Best Dividend Stocks: JPMorgan Chase

The banking giant has paid dividends for more than 20 consecutive years and grown dividends for 10 straight years.

**Dividend yield**: JPMorgan Chase stock provides a $3.60 annual dividend, for a 2.4% yield.

**Five-year return**: 152%.

**Dividend growth rate**: 19%.

**Dividend stability factor: **6.

**Dividend payout ratio**: 41%.

**Earnings stability factor**: 12. Over the past three years, JPMorgan grew EPS 3% annually.

## Best Dividend Stocks: T. Rowe Price

The global investment manager first paid a dividend in 1986.

**Dividend yield**: T. Rowe Price stock provides a $4.32 annual dividend, for a 2.5% yield.

**Five-year return**: 133%.

**Dividend growth rate**: 9%.

**Dividend stability factor**: 16.

**Dividend payout ratio**: 38%.

**Earnings stability factor**: 4. Over the past three years, T. Rowe grew EPS 16% annually.

These top dividend stocks can give a big boost to growth and income portfolios.

www.investors.com