Corporate America continues to increase cash payouts to shareholders at a high, shareholder-friendly rate. S&P 500 dividends per share growth accelerated to 15.5% in the second quarter. That was well above the 5% growth rate that the UBS A.G (NYSE: UBS) Dividend Ruler analyst team expects dividend growth to exceed earnings per share growth in the quarter. This will mark the seventh consecutive quarter that S&P 500 dividend growth has exceeded earnings growth.

With the second-quarter earnings season firing up this week, we thought it made sense to look through the Dividend Ruler stocks and give our readers an update on the best stocks to buy for the second half of 2013. We screened for domestic stocks with the highest percentage of 10-year dividend compound annual growth rate (CAGR) and the highest percentage of dividend growth consistency. Here are the stocks to buy based on that criteria.

Intel Corp. (NASDAQ: INTC) scores the highest in both categories of CAGR and consistency. The company has made serious investments in R&D and equipment to become a large supplier of chips to the massively growing tablet and smartphone market. Intel has an 85% plus share in the PC and server processor market due to its strong semiconductor manufacturing and technological expertise. The Thomson/First Call estimate for the chip giant is $23, below current trading levels. Investors are paid a very high 3.7% dividend yield.

CSX Corp. (NYSE: CSX) is one of the railroad companies looking to cash in on the growth of oil transportation by rail. Despite this past weekend’s deadly crash and the prospect of the Keystone XL pipeline being built, oil transportation by rail is growing and should continue. The consensus price target for CSX is $27, and investors are paid a 2.6% dividend yield.

Aflac Inc. (NYSE: AFL) is one of the leading provider of insurance products in Japan. Aflac sells supplemental health insurance that covers out-of-pocket expenses in the case of illnesses or accidents. At the end of 2012 it had annual revenues of more than $25.4 billion, 75% of which is derived in Japan. The consensus price objective for the stock sits at $61, and shareholders receive a 2.4% dividend yield.

United Technologies Corp. (NYSE: UTX) is the least-sold short stock in the Dow Jones Industrial Average. China revenue has grown 29% and sequester effects have been very limited. Consensus price estimates for the stock are at $103. Shareholders are paid a 2.2% dividend yield.

Occidental Petroleum Corp. (NYSE: OXY) is looking much better following the conclusion of the boardroom battle in which Steve Chazen emerged victorious and is now planning to restructure the organization. The company is giving strong consideration to splitting its U.S. and international operations, which may really unlock shareholder value. The consensus price target is at $105, and investors receive a 2.8% dividend yield.

Medtronic Inc. (NYSE: MDT) announced on June 20 that it was raising the quarterly dividend by 8% to $0.28 per share. The company remains committed to returning 50% of free cash flow to shareholders each year. It has boosted its payout for 36 years in a row. The consensus price target for this leading medical devices company is $55.50. Shareholders receive a 2.1% dividend yield.

Colgate-Palmolive Co. (NYSE: CL) is a top holding at billionaire David Harding’s Winton Capital Management. The hedge fund owns 340,000 share, and analysts are expecting strong second half earnings growth boosted by emerging markets. Consensus price expectations for the stocks are $62.75, and investors receive a 2.4% dividend.

Johnson & Johnson (NYSE: JNJ) completes the list of top Dividend Ruler stocks to buy. With its tremendous balance of consumer, pharmaceutical and medical device products, the company had increased dividend payouts for shareholders for the past 50 years. The consensus for this top name is $91. Investors are paid a 3.0% dividend.

The UBS dividend Ruler stocks are exactly the area investors should focus on in a rising interest rate environment. We have recently examined what fate may be waiting for investors in high dividend yielding stocks. Stocks that can consistently grow their dividend and their top and bottom lines are a smart place for investors to continue to move capital to.

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