Dividend stocks are a popular choice for investors looking for a steady stream of income. These stocks pay out a portion of their profits to shareholders in the form of dividends, which can provide a valuable source of passive income.
However, not all dividend stocks are created equal. One of the most important factors to consider when investing in dividend stocks is the company's track record of paying dividends over time.
Companies that have a long history of paying dividends are considered to be more reliable income sources than those that have only recently begun paying dividends or have a spotty track record of paying dividends.
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These “dividend aristocrats” have a proven track record of returning cash to shareholders, even during times of economic uncertainty. They are also more likely to continue raising their dividends over time, which can help investors to outpace inflation and achieve the highest investment returns possible.
When you're looking for dividend stocks to buy, it's important to consider the company's track record of paying dividends over multiple years.
The companies that have a long history of paying dividends are more likely to be reliable income sources and to continue raising their dividends over time. This can help you to achieve the highest investment returns possible and outpace inflation. Without further ado, here they are:
5. Procter & Gamble (PG) – With a solid track record of raising dividends for 62 consecutive years, Procter & Gamble is a reliable choice for investors looking for steady income growth. The consumer goods giant has a current yield of 2.4% and a low payout ratio, indicating room for future dividend increases.
4. Johnson & Johnson (JNJ) – Another Dividend Aristocrat, Johnson & Johnson has raised its dividend for 58 consecutive years. The healthcare giant has a current yield of 2.6% and a low payout ratio, making it a solid pick for long-term income growth.
3. Coca-Cola Co. (KO) – With a current yield of 2.9%, Coca-Cola is a popular choice for income investors. The company has a strong track record of raising dividends for 57 consecutive years. Its low payout ratio also suggests potential for future dividend growth.
2. Wal-Mart Stores Inc. (WMT) – Wal-Mart is a retail giant with a current yield of 1.5%. The company has a strong track record of raising dividends for 47 consecutive years. Its low payout ratio also indicates room for future dividend increases.
1. 3M Co (MMM) – 3M is a diversified technology company that has raised dividends for 61 consecutive years. The company has a current yield of 4.6% and a low payout ratio, making it a solid pick for long-term income growth.
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