Ten years ago, independent analyst Harry Domash focused mainly on growth stocks. He tracked dividend stocks but didn’t take them very seriously, terming them “mattress stuffers.”

But “by the time the smoke cleared, the dividend stocks did the best, though the ‘rockets’ got all the attention,” Domash says.

That analysis — combined with the market crash of 2008 — persuaded Domash, based in Santa Cruz, California, to concentrate solely on dividend stocks. He now runs Dividend Detective, an analysis and advice site that mines data for stocks that provide steady, if unspectacular, cash flow.

Cultivating a portfolio of dividend stocks isn’t as boring as it might sound. Analysts and financial planners say it’s smart to start with a set like the Dow Dividend list, which includes 30 blue-chip stocks from Apple (ticker: AAPL) to Exxon Mobil Corp. (XOM). But as you become conversant in what comprises an equity that delivers both cash through dividends and growth through appreciating value, you can formulate your own baskets of stocks that share those characteristics.

Holdings that blend dividend income and moderate growth are the “core of anybody’s portfolio,” says David Blount, who manages Eagle equity income strategies based in St. Petersburg, Florida. “We want a robust return, a take-home for the investor, but also growth that protects against inflation.” Eagle’s underlying holdings for its equity income strategy portfolios deliver a yield of about 3.1 percent, roughly 50 percent more than the Standard & Poor’s 500 index, Blount says.

It’s important to understand the key moving parts of dividend stock analysis, says Abhishek Gupte, dividend stock expert with Mitre Media, publisher of Dividend.com.

The yield is a key comparison because it divides the share price by the dividend. If a share is $10 and the dividend is $1, then the yield would be 10 percent. Comparing yields lets you quickly see the comparative value of dividend stocks, but there are important caveats. If a stock’s market price drops while the dividend stays the same, the yield will go up — but the value of the stock in your portfolio will have declined, Gupte says.

“You want to invest in a stock that’s doing well and that has a good yield,” he says. “You want relative yield to be high — at 2 to 3 percent. People look at a yield of 8 percent and say, wow, let’s invest. But that might be due to the fact that the share price is down.”

That explains the perennial appeal of blue-chip dividend stocks that deliver steady, unspectacular growth and steady, unspectacular dividends. They deliver value on both fronts, Gupte says.

“If you’re getting a blue chip with a yield of 3 percent to 3.5 percent, that’s generally considered a good buy,” he says. “Dividends can only grow if there are earnings growth. You want estimates of the next year’s earnings to be good. You look at all these factors.”

Domash has identified these six dividend stocks that are well-positioned to deliver steady growth and consistent cash flow:

— Ford Motor Co. (F), which pays 4.2 percent, is likely to drive growth next year with strong domestic car and truck sales.

— AbbVie (ABBV), a pharmaceutical company with a strong pipeline of new products. AbbVie pays a 4 percent dividend, “which is good for a growth company,” Domash says.

— Kraft Heinz Co. (KHC), the recently merged packaged food company, is partly owned by Berkshire Hathaway (BRK.B). It pays 3.2 percent, and growth is likely based on management’s dedication to cutting costs and developing new products.

— Target Corp. (TGT) is in turnaround but still yields 3 percent. “It will do well for at least another two years,” Domash says.

— Mattel (MAT) is a great example of a company that pays a relatively high dividend — 5.5 percent — precisely because its stock has been in the doldrums. A new CEO appears to be resurrecting Barbie and her friends.

— Wells Fargo & Co. (WFC), with its huge mortgage business and strong, plain-vanilla consumer financial services, pays 2.7 percent and is likely to keep it up, Domash says.

As you become more conversant in dividend stock dynamics, you might want to look at the payout ratio, which is the proportion of earnings that the company pays to its owners through dividends. A company that earns $1,000 and pays $500 in dividends has a payout ratio of 50 percent. Dividend.com maintains a “dividend aristocrat” list that tracks stocks that have increased their dividends consecutively for more than 25 years.

Paulo Herman, another analyst with Mitre’s ETFDB.com, says that despite current travails in the energy sector, Exxon Mobil has increased its dividend. However, Exxon Mobil is likely to report lower earnings for 2016, according to analysts.

Finally, don’t expect to put any dividend stock holding, whether individual or in a fund, on automatic pilot. Domash says. When you talk about blue chips, you’re looking for stocks that have had good runs, but you have to make sure that they’re not at the end of that run. “Last year’s blue chip could be this year’s dog,” he says.

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6 Blue-Chip Dividend Stocks to Buy in 2016 originally appeared on usnews.com