Top 3 Dividend Stocks for 2013

They are Exelon (EXC), Safeway (SWY), and Energy Transfer Partners (ETP).

Some are saying that Obama's "Taxmageddon" is going to be a game-over scenario for dividend stocks.

However, we don't think so. Here's why.

Institutional buyers of dividend stocks are taxed at their own rate so they did not benefit from the 2003 cut in dividend taxes anyway - which means they won't suffer from a new increase.

And even among retail investors, many have their investments in 401(k)s or IRAs. These holders will continue to receive dividends that won't be immediately taxed.

The talk is that if we fall off the fiscal cliff, taxes on dividends will revert to the full income tax rate of each individual taxpayer.

For the top retail taxpayers that are not investing using a tax-deferred account, that means the top rate on dividends will rise from 15% to 43.4% if dividends become fully taxable again.

And lastly, Bernanke is saying short term interest loans are going to stay low until 2015. Dividend yields should still offer an attractive yield compared to bonds.

Enough said, now let's get to the stocks:

Exelon (EXC) - 7% yield

Shares of the $25B Utility giant are down 28% YTD, yet it has not cut its dividend. On November 1st, EXC announced earnings that beat on EPS and they upped Guidance.

Over the past 12 months Exelon Corp (EXC) shares have traded between $28.4 and its 52-week high of $44.45.  Exelon Corp shares are now trading with a P/E Ratio of 15.9 and EPS of 1.87.

Safeway (SWY) Dividend Yield - 4.15%

Over the past 12 months Safeway Inc (SWY) shares have traded between $14.73 and its 52-week high of $23.16.  Safeway Inc shares are now trading with a P/E Ratio of 8.8 and EPS of 2.07.

Energy Transfer Partners (ETP) Dividend Yield - 8.27%

Over the past 12 months Energy Transfer Partners LP (ETP) shares have traded between $40.19 and its 52-week high of $51.  Energy Transfer Partners LP shares are now trading with a P/E Ratio of 8.4 and EPS of 4.53.