10 of the stock market's top dividends

Secure financial comfort for retirement

In order to make it on this rarified list, companies need to pass three tests:1. Be a “Dividend Aristocrat”—requiring a company to

be a member of the S&P 500, and to have increased its dividend payout for at least 25 consecutive years.

2. Have a dividend growth rate of more than 3% over the past five years.

3. Use less than 80% of free cash flow to pay out the dividend in 2014.

The following 10 companies were the highest yielding stocks to pass all three criteria, listed in reverse order based on the dividend.

Dividend Yield: 2.6%

5 Year Growth Rate: 24.5%

FCF Payout: 45%

Approach Target with a level of caution. The company’s data breach and falling free cash flow are masked by solid dividend performance. If performance can stabilize, Target could be a solid dividend stock.

Dividend Yield: 2.7%

5 Year Growth Rate: 3.6%

FCF Payout: 44%

This company is by far the smallest on the list. L&P makes furnishings for residential, commercial, and industrial clients. Its low payout ratio means there’s lots of room to increase the dividend in the future.

Dividend Yield: 2.8%

5 Year Growth Rate: 8.2%

FCF Payout: 59%

You use the company’s products for virtually every step of the cleaning process…and more. Clorox’s success abroad is helping to to continually expand its dividend.

Dividend Yield: 3.0%

5 Year Growth Rate: 7.4%

FCF Payout: 53%

J&J is able to bring in a steady stream of revenue from its over-the-counter products, while looking to hit home runs in the machinery and pharmaceutical divisions.

Dividend Yield: 3.2%

5 Year Growth Rate: 6.7%

FCF Payout: 70%

One of the world’s largest producers of paper products makes the list. By providing staples with popular brand names, the company is able to rake in the cash and pay most of it out to shareholders.

Dividend Yield: 3.2%

5 Year Growth Rate: 8.3%

FCF Payout: 65%

While Coke’s signature soda business has faced troubles recently, the company also owns several juice and water brands that are helping to offset the weakness.

Dividend Yield: 3.2%

5 Year Growth Rate: 6.3%

FCF Payout: 41%

A lesser-known dividend payer, Emerson is not so much a utility as it is an engineering and manufacturing company. It makes everything from InSinkErators to climate technologies.

Dividend Yield: 3.3%

5 Year Growth Rate: 3.8%

FCF Payout: 74%

No, this isn’t the famous technology company. It’s the leading distributor of food in the United States. Investors need to keep an eye on whether the proposed merger with U.S. Foods will go through.

Dividend Yield: 3.3%

5 Year Growth Rate: 7.6%

FCF Payout: 63%

Though P&G has run into some slow growth lately, the company owns some of the strongest brands in personal hygiene. This gives it pricing power which it can then return to shareholders in the form of dividends.

Dividend Yield: 3.5%

5 Year Growth Rate: 9.6%

FCF Payout: 78%

One of the reasons McDonald’s has the top spot is because investors haven’t been excited by the company’s unhealthy fare. A lower price means a higher yield. Investors diving in now need to make sure they believe the company will be relevant a decade from now.

3 Companies Poised to Explode When Cable Dies

(Two already pay dividends!)