Steady Dividend Payers: Golden Stocks That Have Consistently Delivered Decades-Long Dividends
Investing in stocks that deliver consistent dividends is a strategy that has been cherished by investors for decades. These dividend aristocrats, as they are often called, have been known to offer steady income to investors, with some paying dividends for over a century. Let's explore a few examples of such companies and dive into the investment landscape.
Examples of Steady Dividend Payers
1. Coca-Cola – While Coca-Cola is not among the specific examples mentioned, it has a reputation for its consistent dividend payments, dating back to 1920. Regularly paying dividends for almost a century, Coca-Cola exemplifies the long-term commitment to shareowner value.
Highly Rated Dividend Stocks
According to the reference book New York Stock Exchange’s 106 Best High Dividend Stocks - Analyzed and Scored, several stocks stand out for their consistent high dividend payments over a significant period. The top three stocks in this book are:
1. AQN with a current dividend yield of 5.47% and an IDM score of 50/100
This company provides a notable return on investment, along with a robust financial standing, making it a strong candidate for steady dividend payments.
2. ALCO with a current dividend yield of 6.09% and an IDM score of 54/100
ALCO offers an even higher yield, standing at 6.09%, and has demonstrated a solid financial foundation. It’s a strong choice for investors looking for a combination of high dividends and reliable growth.
3. MO with a current dividend yield of 8.95% and an IDM score of 52/100
MO boasts the highest dividend yield of the three, delivering an impressive 8.95%. Its IDM score of 52 indicates a balanced approach towards financial health and dividend sustainability.
Investment Style: Dividend Aristocrats
Investment strategies dedicated to dividend aristocrats have gained significant traction. For instance, ProShares has an SP 500 Dividend Aristocrats ETF (NOBL). This fund targets companies that have increased dividend payments annually for at least 25 years and are members of the SP 500. The chart below illustrates the total return of SPY (SP 500 ETF) versus NOBL (Dividend Aristocrats ETF).
Notable Examples of Long-Duration Dividend Payers
Several well-known companies have a history of paying dividends for many decades. Here are a few examples:
E I DuPont De Nemours and Co (DD)
DD, a historic American chemical company, has been paying dividends since 1904. This long history underscores the company's commitment to its shareowners.
General Mills Inc.
Known for its iconic products like Cheerios, General Mills has a similar track record of dividend payments, emphasizing long-term stability.
Edison International (EIX)
EIX, a utility company, has paid dividends for a long time, contributing to its reputation as a reliable investment.
Johnson Controls Inc.
This multinational company has a strong history in paying dividends, showcasing its resilience and financial strength.
Church Dwight Co. Inc.
Church Dwight is a long-standing household name that has consistently delivered dividends, adding to its appeal as a dividend-paying stock.
Stanley Black Decker Inc.
This diversified producer of tools and security systems has a history of paying dividends, making it a solid choice for dividend investors.
Exxon Mobil Corporation (XOM)
While Exxon Mobil has its challenges, it has a long history of paying dividends, dating back to 1922.
Eli Lilly and Co (LLY)
LLY, a pharmaceutical company, has a strong track record of dividend payments, contributing to its credentials as a dividend aristocrat.
Investing in these dividend aristocrats can provide a steady stream of income and financial security for long-term investors. However, it's always wise to conduct thorough research and consider individual circumstances before making any investment decisions.
Remember, while these stocks may offer consistent dividends, the market can fluctuate, and no investment is without risk. Always consult with a financial advisor before making any investment.