When the economy is booming and earnings are growing by double-digits, it is easy to increase dividends. But how about when the economy is slipping and margins are being squeezed? During these times are when you learn which companies are truly committed to their culture of increasing dividends.
Companies that have a reputation as good, solid dividend companies didn't gain this status overnight. It takes years, even decades, to build a relationship of trust with shareholders through increasing dividends. Many of these shareholders rely on dividend payments to provide for their families.
It is important to note, that this relationship is a two way street. Shareholders in top-shelf dividend growth companies are not quick to sell. This was especially noticeable during the 2008-2009 financial crisis. The very best dividend growth stocks did not fall near as much as stocks cutting their dividends or even the average stock.
This week week, I screened my dividend growth stocks database for stocks that have raised their dividends for 50+ consecutive years and have a yield in excess of 2.2%. The results are presented below:
Dover Corp. (DOV) manufactures a broad range of specialized industrial products and sophisticated manufacturing equipment. The company has paid a cash dividend to shareholders every year since 1947 and has increased its dividend payments for 61 consecutive years. Yield: 2.3%
3M Co. (MMM) provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives and other chemical additives. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 58 consecutive years. Yield: 2.5%
Johnson & Johnson (JNJ) is a leader in the pharmaceutical, medical device, and consumer products industries. The company has paid a cash dividend to shareholders every year since 1944 and has increased its dividend payments for 54 consecutive years. Yield: 2.5%
Cincinnati Financial Corp. (CINF) is an insurance holding company that primarily markets property and casualty coverage. It also conducts life insurance and asset management operations. The company has paid a cash dividend to shareholders every year since 1954 and has increased its dividend payments for 56 consecutive years. Yield: 2.7%
Genuine Parts Co. (GPC) is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 60 consecutive years. Yield: 2.9%
The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries. The company has paid a cash dividend to shareholders every year since 1891 and has increased its dividend payments for 59 consecutive years. Yield: 2.9%
Vectren Corp. (VVC) is an energy holding company that primarily provides energy delivery services to natural gas and electric customers in Indiana and Ohio. The company has paid a cash dividend to shareholders every year since 1946 and has increased its dividend payments for 57 consecutive years. Yield: 3.0%
Emerson Electric Co. (EMR) designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial and consumer markets around the world. The company has paid a cash dividend to shareholders every year since 1947 and has increased its dividend payments for 61 consecutive years. Yield: 3.3%
Northwest Natural Gas Co. (NWN) is a natural gas utility that provides service to residential, commercial and industrial customers in Oregon, Washington and California. The company has paid a cash dividend to shareholders every year since 1952 and has increased its dividend payments for 62 consecutive years. Yield: 3.2%
The Coca-Cola Company (KO) is the world's largest soft drink company, and also has a sizable fruit juice business. The company has paid a cash dividend to shareholders every year since 1893 and has increased its dividend payments for 54 consecutive years. Yield: 3.5%
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 200+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long MMM, JNJ, CINF, GPC, VVC, PG, EMR, NWN, KO. See a list of all my Dividend Growth Portfolio holdings here.
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Tags: DOV, MMM, JNJ, CINF, GPC, VVC, PG, EMR, NWN, KO,
