10 Good, Cheap Dividend Stocks to Buy Now: Morningstar

In her latest blog post, Morningstar investment analyst Susan Dziubinski lists the best dividend stocks that investors may want to buy now. These stocks have durable dividends — always an important selection criterion, she writes — and are undervalued. Morningstar analysts plucked the stocks from the firm's Dividend Yield Focus Index of 75 high-yielding stocks whose dividends are qualified income; they do not include real estate investment trusts. These are quality companies that have the financial stability to maintain dividends during questionable economic periods. The securities have economic moat ratings of narrow or wide, meaning they have robust competitive advantages, and uncertainty ratings of low, medium or high, which enables analysts to connect the estimated value of a company's shares to the fair value estimate. All the stocks on the list have 4 star Morningstar ratings as of Feb. 13. See the accompanying gallery for the 10 best dividend stocks. One-year performance is as of Feb. 16.