10 Stocks With Decades of Dividend Growth
by Marc Bastow | March 18, 2013 6:15 am
Longevity and consistency are the hallmarks of many a good investment, and these traits are especially important when it comes to dividend stocks. There’s nothing income investors love more than Steady Eddie stocks that not only deliver payouts quarter after quarter, but increase those payouts like clockwork, too.
What do these companies have in common? Generally speaking, stocks that are able to keep up — and grow — dividends for a very long time are market leaders with products that have stood and will continue to stand the test of time. they are market leaders with products that can stand the test of time.
Here’s a quick look at 10 such stocks that have been able to provide and improve upon payouts annually for at least 30 consecutive years — and unsurprisingly, all are members of our list of Dependable Dividend Stocks:
- Procter & Gamble (NYSE:PG), 59 years of increases: P&G is the dean of dividend growth consistency, and its 2.9% yield is nothing to sneeze at, either. Household names like Bounty, Charmin, Pampers and Downy help keep that payout churning, and it’s probably safe to say that consumer products won’t go out of style any time soon.
- Dover (NYSE:DOV), 57 years: This isn’t exactly a household name, but the maker of specialized products — across communications, engineered products and printing and identification segments — has upped its dividend since Elvis started cranking out albums. DOV’s 1.9% yield is modest, but the company has increased its payout by 75% in the past five years.
- Genuine Parts (NYSE:GPC), 56 years: Genuine Parts distributes automotive replacement parts, as well as office products, electrical components and other products. But you might best know GPC through its NAPA brand of automotive retail parts, which are distributed across the country and also sold via thousands of NAPA-branded stores. GPC currently yields a healthy 2.8%.
- 3M (NYSE:MMM), 54 years: 3M’s products can be found in just about every household. The maker of Scotch Tape, Post-It notes, Nexcare First Aid Products and Filtrete Filters is firmly entrenched in the minds of consumers. Investors love it for the consistency of its dividend, which has been paid for more than half a century, and currently yields 2.4%.
- Coca-Cola (NYSE:KO), 50 years: Everyone knows it’s the maker of the world’s Nos. 1 and 2 sodas, but it’s also a purveyor of all things beverage — juice, sparkling water, sports drinks, you name it. It continues to account for a large position in Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, BRK.B) portfolio — likely in part because of KO’s 2.9% dividend. If anyone can make a case for longevity, it’s this U.S. institution.
- Colgate-Palmolive (NYSE:CL), 50 years: Like P&G, Colgate is one of several consumer stocks knocking it out the park recently, thanks to its deep brand of hygiene and healthcare products. CL recently announced a payout increase that will lift its dividend to around 2.4%, as well as a 2-for-1 stock split.
- Johnson & Johnson (NYSE:JNJ), 50 years: Starting to see a trend? The maker of pharmaceutical products — as well as Johnson’s baby products, Band-Aid, Acuvue and other commercial brands — currently yields 3.1% and is stalwart dividend stock that belongs in just about any long-term portfolio.
- W.W. Grainger (NYSE:GWW), 48 years: The unsexy distributor of maintenance parts and supplies — we’re talking rubber gloves and batteries, here — is one of my personal favorites. The 1.9% yield isn’t anything to scream at, but like Dover, there’s plenty of room for it to grow, and there’s certainly no worry of it going anywhere.
- McDonald’s (NYSE:MCD), 36 years: MCD has increased its dividend every year since it first started writing checks, and currently yields 3.1%. McDonald’s continues to be one of the most innovative companies in the world, constantly putting together new menu items and in-store concepts to keep generations of customers flocking to the Golden Arches. MCD is a global powerhouse, and it’ll stay that way.
- Wal-Mart (NYSE:WMT), 30 years: Walmart is always going to come under scrutiny for its practices, particularly when it comes to paying employees, but no one will flag it for not paying its shareholders. Walmart yields a solid-if-unspectacular 2.6%, and until someone can unseat it as the world’s top retailer, you can rest easy.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long JNJ.
- Dependable Dividend Stocks: http://investorplace.com/dividend-paying-stocks/
- PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
- DOV: http://studio-5.financialcontent.com/investplace/quote?Symbol=DOV
- GPC: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPC
- MMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMM
- KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
- BRK.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.A
- BRK.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.B
- CL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CL
- several consumer stocks knocking it out the park recently: http://investorplace.com/2013/03/soap-and-toothpaste-are-crushing-the-market/
- JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
- GWW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GWW
- is one of my personal favorites: http://investorplace.com/2013/01/w-w-grainger-supplies-retirement-dividends-for-investors-gww-shld/
- MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
- in-store concepts: http://investorplace.com/2013/02/where-mcdonalds-is-testing-waiters-fine-china/
- WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
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