If you’re looking for the best dividend stocks to buy for 2023, an excellent place to start is with the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG). VIG is the largest U.S.-listed dividend ETF with $64.2 billion. 

The ETF tracks the performance of the S&P U.S. Dividend Growers Index, a collection of 289 dividend-paying stocks that have a record of increasing their dividends. 

In 2022, the ETF had a total return of -9.81%, about half the loss of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). So there’s no question that VIG can deliver a combination of offense and defense. I think dividend stocks possess this attribute. 

When looking for the best dividend stocks to buy, I’m more interested in the dividend growth than the yield. That’s because growth in dividends results from growth in earnings. The two usually go hand in hand. VIG delivers these types of companies. 

Two of my three names are held by VIG. The one that isn’t will make you money over the long haul.

T. Rowe Price (TROW)

According to Finviz.com, 64 financial stocks in the S&P 500 have a market capitalization greater than $10 billion. Unfortunately, asset manager T. Rowe Price (NASDAQ:TROW) has the 15th-worst performance over the past year. Down 19%, investors have stayed away. 

Four months into 2023, analysts haven’t lost their disdain for TROW. According to MarketWatch, none of the 16 analysts covering its stock rate it as Overweight or Buy. Overall, they have an Underweight rating with an average target price of $91.61, 19% below where it’s currently trading. 

However, in the past month, the asset manager has reported several pieces of good news. 

First, on April 13, it reported month-end assets under management (AUM) for March of $1.34 billion, up $67 billion from the end of December. Of its $1.34 trillion AUM, 27% were target-date products, suggesting investors try and reduce risk as they get closer to retirement. 

Secondly, it announced on March 30 that it was acquiring Retiree Inc., a fintech company that provides innovative retirement income planning software. It will leverage Retiree’s software to build personalized retirement solutions for its clients.    

Lastly, two of its executives were named to Barron’s 2023 list of the Top 100 Most Influential Women in U.S. finance. It’s always nice to see women getting recognition for their work in finance.  

The company pays a $1.22 a share quarterly dividend that currently yields a healthy 4.3%  T. Rowe Price has increased its dividend for 37 consecutive years.

Texas Instruments (TXN)

Texas Instruments (NASDAQ:TXN) increased its quarterly dividend by 8% to $1.24 a share with the November dividend payment8% to $1.24 a share. The annual payment of $4.96 yields a reasonable 2.8%. 

As semiconductor companies go, it’s not the most glamorous, making analog chips, embedded processors, and even electronic calculators. Who could forget the TI-35? But, of course, its calculator revenues are a very tiny piece of its business. In 2022, they accounted for 2% of Texas Instruments’ $20.03 billion in revenue. 

The company focuses on capital allocation. As a result, it reports information each quarter, such as cash generation, free cash flow as a percentage of revenue, and cash return to shareholders. 

In 2022, its cash flow from operations was $8.72 billion, flat to 2021. However, its capital expenditures were 14% higher to $2.80 billion, cutting its free cash flow by 6% to $5.92 billion. 

As for cash returned to shareholders, dividends accounted for 54% of the $7.91 billion, with share repurchases accounting for 46%, or $3.62 billion, 586% higher than the previous 12 months. 

On Feb. 15, Texas Instruments announced it would build its next 300-millimeter semiconductor wafer fabrication plant in Lehi, Utah. It’s being built right next door to its existing 300-mm wafer fab plant. 

It’s investing $11 billion to complete the plant. Once finished, the two plants will operate as one.

On April 1, long-time CEO Rich Templeton stepped down from the top job after 18 years of leading the company. However, he’ll remain with TI as Executive Chairman. Taking over is 24-year company veteran Haviv Ilan.    

Not only does TI have excellent free cash flow, but it also has a solid bench.

Pool Corporation (POOL)

Pool Corporation (NASDAQ:POOL) is the world’s largest wholesale distributor of swimming pool and related outdoor living products. It has more than 420 sales centers on three continents.  

With the May 2022 dividend payment, the company raised its dividend by 25.0% to $1 a share. The annual payment of $4 yields 1.13%. 

That might not seem like a lot, but when you consider that $1 million invested in POOL stock 20 years ago was worth $34 million in September 2022, if you are one of those long-term shareholders, you probably don’t care. 

They’re otherworldly, whether we’re talking about its 3, 5, 10, or 20-year return.   

Over the years, I’ve learned one thing: If you own a house with a pool, you won’t sell it if you don’t maintain it. It’s that simple. 

As I write this, Pool is preparing to report its Q1 2023 results. Analysts expect both earnings and revenue to be down from Q1 2022. Whatever happens, the company remains an excellent capital allocator and very shareholder-friendly, allocating $631 million in 2022 to dividends and share repurchases.     

Of the 12 analysts covering POOL stock, six give it a Buy rating with a median target price of $411.50, considerably higher than where it’s currently trading.

Over the past year, Pool lost nearly 19% of its value. Investors are worried that higher interest rates will reduce the number of pools built in 2023. Unfortunately, that’s probably going to come true.

However, existing pools must be maintained, so its business will generate plenty of revenue for ongoing maintenance. Consider it recurring revenue. That’s the best kind.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.