Beleggers met langdurige dividendgroei kennen de kracht van geduld.
De beste dividendaandelen - bedrijven die hun uitbetalingen tien jaar na tien jaar als een klokje verhogen - kunnen een superieur totaalrendement opleveren, zelfs als ze ogenschijnlijk lage opbrengsten hebben. Regelmatige dividendverhogingen verhogen ook het rendement op basis van de oorspronkelijke kosten van een belegger. Blijf lang genoeg in de buurt, en het niet-indrukwekkende rendement van 1% dat u op uw initiële investering heeft ontvangen, kan met grote sprongen groeien.
En, zoals altijd, laten we de magie van compounding niet vergeten. Zoals Ben Franklin ooit zei:"Geld maakt geld. En het geld dat geld oplevert, maakt geld."
Bedrijven met een lange geschiedenis van jaarlijkse dividendgroei bieden ook enige gemoedsrust. Wanneer een bedrijf erin slaagt zijn dividend jaar na jaar te verhogen, door recessie, oorlog, marktcrashes en meer, maakt het een krachtig statement over zowel zijn financiële veerkracht als zijn toewijding aan aandeelhouders.
Betreed de dividendaristocraten.
De Dividend Aristocrats zijn bedrijven in de S&P 500 Index die hun jaarlijkse uitbetalingen gedurende ten minste 25 opeenvolgende jaren elk jaar hebben verhoogd. Deze lijst met de beste dividendaandelen van de S&P is een mix van bekende namen en meer obscure bedrijven, maar ze spelen allemaal een sleutelrol in de Amerikaanse economie. En hoewel ze verspreid zijn over vrijwel elke sector van de markt, hebben ze allemaal één ding gemeen:een toewijding aan betrouwbare en langetermijndividendgroei.
Een korte opmerking:S&P Dow Jones Indices voegde drie nieuwe namen toe voor 2021, ter vervanging van Raytheon (RTX), Carrier Global (CARR) en Otis Worldwide (OTIS) na spin-offs en een overname ontmantelde het voormalige United Technologies-imperium.
Hier zijn de huidige 65 Dividendaristocraten, inclusief de nieuwste gezichten om zich bij de groep aan te sluiten. De volgende namen behoorden de afgelopen decennia tot de beste dividendaandelen voor inkomensgroei, en ze zijn een geweldige plek om te beginnen als u op zoek bent naar dividend-slagschepen aan uw langetermijnportefeuilles.
NextEra Energy (NEE) is een recente toevoeging aan de Aristocraten. Het nutsbedrijf werd in januari 2021 toegevoegd aan de elitegroep van dividendtelers.
Het bedrijf heeft twee hoofdactiviteiten:Florida Power &Light (FPL) is het grootste elektriciteitsbedrijf van Florida, terwijl NextEra Energy Resources een belangrijke speler is op het gebied van wind- en zonne-energie. Analisten waarderen deze combinatie van een succesvol gereguleerd nutsbedrijf met een sneller groeiend bedrijf op het gebied van hernieuwbare energie. Bevolkingsgroei en de focus van de regering-Biden op de opwekking van hernieuwbare energie zou het bedrijf goed van pas moeten komen.
Het bedrijf verhoogde zijn dividend voor het laatst in februari 2021, waarbij de driemaandelijkse uitkering met 10% werd verhoogd tot 38,5 cent per aandeel.
Internationale zakelijke machines (IBM), een onderdeel van de Dow Jones Industrial Average, is niet zo illuster als het ooit was. De omzet van het bedrijf is gedurende het grootste deel van een decennium gestaag gedaald, gekwetst door de status die het bedrijf ook had in kritieke groeigebieden zoals sociale, mobiele, analyse- en cloudinfrastructuuractiviteiten.
En toch is Big Blue ondanks al zijn uitglijders een trouwe dividendverdediger geweest, die in januari 2021 lid werd van de Dividend Aristocrats.
In april 2021 verhoogde IBM het kwartaaldividend met een cent tot $ 1,64 per aandeel, waarmee het zijn 26e opeenvolgende jaar van verhogingen markeerde. IBM heeft sinds 1916 opeenvolgende driemaandelijkse dividenden uitgekeerd. Belangrijk is dat het bedrijf de middelen heeft om de groeireeks levend te houden, een kenmerk dat u verwacht te zien bij de beste dividendaandelen.
Albemarle (ALB), dat speciale chemicaliën zoals lithium produceert, verhoogde recentelijk zijn dividend in februari 2021 – een verhoging van 1,3% tot 39 cent per kwartaal per kwartaal.
De producten van Albemarle werken volledig achter de schermen, maar de chemicaliën worden gebruikt in een aantal industrieën, van technologieën voor schone brandstof tot farmaceutische producten tot brandveiligheid. Maar lithium vormt de kern van de bull-case.
"De positieve kijk op de adoptie van elektrische voertuigen is de belangrijkste drijfveer van ALB en we zijn van mening dat er meer opwaartse risico's zijn voor deze trend om te versnellen onder een blauwe golf in de VS", zegt CFRA Research.
Rups (CAT), 's werelds grootste maker van zwaar bouw- en mijnbouwmaterieel, werd in januari 2019 toegevoegd aan de Dividend Aristocrats.
CAT heeft sinds 1933 zonder mankeren een regelmatig dividend uitgekeerd en heeft de uitbetaling 27 jaar lang elk jaar verhoogd. Meest recentelijk verhoogde het bedrijf het dividend in juni 2021 met 8% tot $ 1,11 per kwartaal.
De beste dividendaandelen hebben voldoende vrije kasstroom om het dividend te dekken, en CAT controleert dat vakje gemakkelijk. Voor de 12 maanden eindigend op 31 december 2020 had CAT een vrije kasstroom na schuldbetalingen van $ 1,97 miljard na uitbetaling van $ 2,2 miljard aan dividenden.
Essex Property Trust (ESS), dat in 2020 werd toegevoegd aan de Dividend Aristocrats, is een vastgoedbeleggingstrust (REIT) die voornamelijk in appartementen aan de westkust belegt.
De REIT ging in 1994 naar de beurs en heeft sindsdien zijn uitbetaling verhoogd. De meest recente stijging vond plaats in februari 2021, toen ESS het kwartaaldividend met 5 cent verhoogde tot $ 2,09 per aandeel.
Dankzij de gestage en genereuze stroom van dividendverhogingen, kan Essex bogen op een geannualiseerd 10-jaars verdeeld groeipercentage van 101,2%. Over 20 jaar bedraagt de jaarlijkse dividendgroei van het bedrijf bijna 250%.
Expeditors International van Washington (EXPD) werd in januari 2020 aan de Aristocrats toegevoegd. Het logistieke bedrijf verhoogde zijn halfjaarlijkse dividend voor het laatst in mei 2021, van 52 cent per aandeel naar 58 cent per aandeel.
Het transportbedrijf heeft een paar moeilijke jaren achter de rug. De handelsspanningen tussen de VS en China tijdens de vorige presidentiële regering hebben EXPD zwaar geschaad. En nu heeft COVID-19 de tonnagevolumes van luchtvracht en de verzending van zeecontainers verstoord.
Ondanks dit alles is EXPD zich echter blijven inzetten voor zijn halfjaarlijkse dividend, dat het al meer dan een kwart eeuw elk jaar verhoogt. Een consistent lage uitbetalingsratio moet ervoor zorgen dat Expeditors voldoende middelen heeft om de streak levend te houden en zijn plaats op een lijst met de beste dividendaandelen te behouden.
Inkomsten uit onroerend goed (O) is een REIT waarop beleggers kunnen vertrouwen voor een vast inkomen, maar er is nog een ander aspect aan dit aandeel dat geschikt kan zijn voor bepaalde inkomensbeleggers:Realty Income is een zeldzaam soort maandelijkse dividendaandelen.
Het bedrijf bezit meer dan 6.700 commercieel vastgoed dat wordt verhuurd aan meer dan 630 huurders – waaronder Walgreens (WBA), 7-Eleven, FedEx (FDX) en Dollar General (DG) – actief in 58 sectoren.
Realty Income genereert doorgaans een voorspelbare cashflow dankzij het langetermijnkarakter van de leases. Het bedrijf heeft sinds 1994 een samengestelde gemiddelde jaarlijkse dividendgroei van 4,3% gerealiseerd.
De laatste verhoging van de REIT, aangekondigd in november 2021, verhoogde het maandelijkse dividend van 23,6 cent per aandeel naar 24,6 cent per aandeel.
Chubb (CB) werd in januari 2019 toegevoegd aan de Dividend Aristocrats. De verzekeringsmaatschappij verhoogde de uitkering voor het laatst in mei 2021, van 78 cent naar 80 cent per aandeel. Met die stap noteerde Chubb zijn 28e opeenvolgende jaar van dividendgroei.
Als 's werelds grootste beursgenoteerde vastgoed- en ongevallenverzekeringsmaatschappij heeft Chubb vestigingen in 54 landen en gebieden. Het is niet het meest opwindende onderwerp voor een dinergesprek, maar het is een winstgevende onderneming die een langdurig dividend ondersteunt.
En de gestage dividendverhogingen van Chubb tellen in de loop van de tijd echt op. De verzekeraar heeft inderdaad een 20-jarige jaarlijkse dividendgroei van meer dan 134%.
People's United Financial (PBCT) is een zeldzaam bankspel in deze verzameling dividendaandelen. De regionale financiële dienstverlener – met meer dan 400 vestigingen in Connecticut, New York, Massachusetts, Vermont, New Hampshire en Maine – heeft een balanstotaal van meer dan $63 miljard. Het eerbiedwaardige New England-instituut vindt zijn oorsprong in 1842.
In februari 2021 sloot M&T Bank (MTB) een deal om People's United Financial over te nemen in een aandelentransactie met een waarde van $ 7,6 miljard. Het valt nog te bezien of M&T de plaats van PBCT op de lijst van dividendaristocraten zal innemen.
PBCT verhoogde zijn dividend voor het laatst in april 2021, van 17,75 cent per aandeel naar 18,25 cent per aandeel per kwartaal.
West Pharmaceutical Services (WST) werd in januari 2021 aan de Dividend Aristocrats toegevoegd als erkenning voor de jaarlijkse stijging van bijna drie decennia.
WST is actief in een kritieke sector van de toeleveringsketen van de gezondheidszorg en produceert verpakkingscomponenten en leveringssystemen voor injecteerbare geneesmiddelen en andere medische producten. Bulls merkt op dat de vraag naar COVID-19-vaccins de vraag naar de producten van het bedrijf stimuleert. Ondertussen zou de robuuste pijplijn van de biofarmaceutische industrie de groei op langere termijn moeten ondersteunen.
Het bedrijf verhoogde het dividend voor het laatst in oktober 2021 – een stijging van 5,9% van de driemaandelijkse uitbetaling tot 18 cent per aandeel. Een ruime vrije kasstroom en een lage uitbetalingsratio moeten aandeelhouders geruststellen dat de jaarlijkse dividendverhogingen zullen blijven komen.
Linde (LIN) werd eind 2018 een Dividendaristocraat nadat het zijn fusie met Praxair had voltooid, dat zelf in januari 2018 werd toegevoegd aan de illustere lijst van de beste dividendaandelen van de S&P 500 voor inkomensgroei. creëerde 's werelds grootste bedrijf in industriële gassen.
Praxair verhoogde zijn dividend gedurende 25 opeenvolgende jaren vóór de fusie, en het gecombineerde bedrijf blijft een vaste dividendbetaler. Voorafgaand aan de fusie verhoogde Linde, nu met het hoofdkantoor in Dublin, sinds 2014 elk jaar het dividend. Linde's meest recente verhoging vond plaats in januari 2021 - een stijging van 10% in de driemaandelijkse uitbetaling tot $ 1,06 per aandeel.
Met voldoende vrije cashflow na aflossing van de schulden, zou Linde voldoende vuurkracht moeten hebben om haar dividendgroei-reeks levend te houden.
A.O. Smit (AOS), een fabrikant van commerciële en residentiële waterverwarmers, is een relatief recente toevoeging aan de Dividend Aristocrats, die de club betrad in 2018. In oktober 2021 kondigde het een verhoging van 7,7% aan in zijn driemaandelijkse uitbetaling tot 28 cent per aandeel. Dat betekende een 29e achtereenvolgende jaar van dividendverhogingen voor het industriële bedrijf.
Het resultaat is dat het samengestelde jaarlijkse groeipercentage van het AOS-dividend over vijf jaar nu meer dan 17% bedraagt. Het groeipercentage van het dividend op jaarbasis over vijf jaar ligt ondertussen boven de 158%.
Met een ruime vrije kasstroom en een ondergemiddelde uitbetalingsratio kunnen beleggers op AOS rekenen om de dividendverhogingen aan te houden.
Ecolab (ECL) levert waterbehandeling en andere onderhoudsdiensten op industriële schaal voor verschillende industrieën, waaronder voedsel, gezondheidszorg en olie en gas. Praktisch gesproken helpen haar producten bij het optimaliseren van alles, van offshore olieproductie tot het polijsten van elektronica tot commerciële wasserijen.
Het fortuin van Ecolab kan echter afnemen als de industriële behoeften fluctueren; wanneer energiebedrijven bijvoorbeeld hun uitgaven terugdringen, zal ECL de brand voelen.
Op de lange termijn zijn de aandelen van deze Dividend Aristocrat echter een bewezen winnaar. Het aandeel heeft in de afgelopen periodes van vijf, tien en vijftien jaar een marktconform totaalrendement opgeleverd. Dat is niet in de laatste plaats te danken aan 30 opeenvolgende jaren van dividendverhogingen. De meest recente verhoging van ECL vond plaats in december 2021, met een stijging van 6% van de driemaandelijkse betaling tot 51 cent per aandeel.
Roper Technologies (ROP) – een industrieel bedrijf dat zich bezighoudt met onder meer medische en wetenschappelijke beeldvorming, RF-technologie en software, en energiesystemen en -regelingen – genereert al bijna drie decennia inkomsten.
De meest recente verhoging werd aangekondigd in november 2021, toen de driemaandelijkse uitbetaling met 10,2% werd verhoogd tot 62 cent per aandeel.
Een combinatie van acquisities, organische groei en sterkere marges hebben Roper geholpen om zijn dividend te verhogen zonder zijn winst op te rekken. En hoewel het rendement misschien niet veel lijkt, zijn geduldige beleggers gaan waarderen wat de gestage dividendverhogingen van ROP hebben gedaan voor hun rendement.
Defensie-aannemer General Dynamics (GD) is een van de nieuwere leden van de Dividend Aristocrats, die in 2017 is toegevoegd aan de elitelijst van beste dividendaandelen voor groei.
Royale militaire uitgaven hebben ertoe bijgedragen dat de gestage stroom contanten van dit dividendaandeel aan de aandeelhouders wordt teruggegeven. In een van de meest recente grote deals, in december 2020, kreeg het bedrijf een contract van het Amerikaanse leger ter waarde van $ 4,6 miljard voor de nieuwste configuratie van de Abrams Main Battle Tank.
General Dynamics heeft zijn distributie al drie decennia opgevoerd. De laatste verhoging werd aangekondigd in maart 2021, toen GD de driemaandelijkse uitbetaling met 8,2% verhoogde tot $ 1,19 per aandeel. Met zijn ondergemiddelde uitbetalingsratio van 41% zou General Dynamics voldoende ruimte moeten hebben voor meer dividendgroei.
Chevron (CVX) is een geïntegreerde oliegigant die ook actief is in aardgas en aardwarmte. Het is ook de enige naam in de energiesector tussen de 30 aandelen in de Dow Jones Industrial Average.
Analisten prijzen Chevron voor het hebben van de sterkste financiële basis in zijn referentiegroep, een zeer aantrekkelijke activaportefeuille en het "meest ongecompliceerde positieve risico-/opbrengstprofiel" van alle aandelen in zijn subsector.
Misschien wel het belangrijkste voor inkomensinvesteerders, CVX heeft meer dan drie decennia ononderbroken dividendgroei op zijn naam staan, en het management heeft gezegd dat het de uitbetaling ten koste van alles zal beschermen. De laatste verhoging van Chevron was in april 2021 met een stijging van 4% in het kwartaaldividend tot $ 1,34 per aandeel.
Atmos Energie (ATO), dat aardgas distribueert en opslaat, werd in januari 2020 toegevoegd aan de Dividend Aristocrats. Het in Dallas gevestigde bedrijf bedient meer dan 3 miljoen distributieklanten in meer dan 1.400 gemeenschappen in acht staten, met een grote aanwezigheid in Texas en Louisiana .
Analisten, die overwegend optimistisch zijn over de naam, wijzen op de sterke fundamenten van ATO en de toenemende vraag naar aardgas in de VS. Een robuuste balans en potentieel voor bovengemiddelde winstgroei bevelen het aandeel ook aan.
Atmos behaalde in november 2021 zijn 35e opeenvolgende jaar van dividendgroei, toen het een verhoging van 8,8% aankondigde tot 68 cent per aandeel per kwartaal.
A steady stream of acquisitions helped wholesale drug and medical device distributor Cardinal Health (CAH) become the giant that it is today. Its most recent acquisition – a $2.2 billion all-stock deal for Bindley Western Industries – closed in February 2021.
Like the rest of the medical device industry, CAH faced challenges during the pandemic as patients put off elective surgeries. But the company still managed to generate ample free cash flow and the dividend increases such cash flow supports.
Indeed, Cardinal Health has upped the ante on its annual payout for 35 years and counting. The Aristocrat last raised its disbursement in August 2021, declaring a 1% increase in the quarterly dividend to 49.08 cents per share.
Asset managers such as T. Rowe Price (TROW) have been losing market share to indexed funds of the type Vanguard offers, but the company still boasts a massive (and growing) $1.67 trillion in assets under management (AUM).
Strong performance from actively managed funds and the firm's focus on the growing retirement market are just two factors boosting AUM, analysts note.
T. Rowe Price has improved its dividend every year for 35 years, including an ample 20% increase to the payout announced in February 2021. Given its track record as one of the best dividend stocks, investors can expect a 36th consecutive dividend hike in 2022.
Telecommunications stocks are synonymous with dividends. Customers pay for service every month, which ensures a steady stream of cash for these dividend stocks.
AT&T (T) – the largest U.S. telecom company – is a perfect example.
AT&T has raised its dividend on an annual basis for 36 consecutive years, and typically boasts one of the highest yields in the S&P 500. That's in large part because of the cash flows generated by the telecom business, which enjoys what some call an effective duopoly with rival Verizon (VZ).
*AT&T didn't raise its dividend in 2020 and appears unlikely to raise it in 2021. Indeed, analysts expect AT&T to cut its dividend in 2022 because of the DirecTV and WarnerMedia spinoffs. Going two years without raising means AT&T will likely be bumped from the list in 2022.
McCormick (MKC) – the maker of herbs, spices and other flavorings – has been bulking up with acquisitions over the years to drive sales growth, and the deals have been paying off.
The strategy should to provide support for McCormick's dividend, which has been paid for 97 consecutive years and raised annually for 36. Most recently, in November 2021, the company hiked its quarterly dividend by 8.8% to 37 cents per share. McCormick's current annualized dividend of $1.36 per share represents an increase of 10% over the annual dividend of $1.24 per share paid in fiscal 2020.
With ample free cash flow and a reasonable payout ratio, MKC has been able to generate an annualized 10-year dividend growth rate of more than 107%. The company's 20-year annualized dividend growth rate tops 471%
Brown-Forman (BF.B) is one of the largest producers and distributors of alcohol in the world. Jack Daniel's Tennessee whiskey and Finlandia vodka are just two of its best-known brands, with the former helping drive long-term growth.
Unlike many of the best dividend stocks on this list, you won't have a say in corporate matters with the publicly traded BF.B shares. They hold no voting power. And most of the voting-class A shares are held by the Brown family.
Still, you can enjoy in the company's gains and dividends. That payout has been on the rise for 38 consecutive years and has been delivered without interruption for 76. Most recently, Brown-Forman last upped the quarterly ante in November 2021, by 5% to 18.85 cents per share.
Cintas (CTAS) is perhaps best-known for providing corporate uniforms, but the company also offers maintenance supplies, tile and carpet cleaning services and even compliance training.
As such, it's seen by some investors as a bet on jobs growth, and tends to move ahead of any pick-up in hiring during and economic recovery. Indeed, CTAS has worked pretty well as a proxy for employment in the past.
Regardless of how the labor market is doing, Cintas is a stalwart when it comes to being one of the best dividend stocks. The company has raised its payout every year since going public in 1983. However, those have been annual distributions up until this year, when the company switched to quarterly payouts.
Most recently, in July 2021, CTAS raised its quarterly dividend by 26.7% to 95 cents per share.
Amcor (AMCR) is a pretty boring company. It designs, manufactures and sells various packaging products for every industry you can think of, including food, beverage, pharmaceutical, medical, home and personal care.
But sometimes boring can be beautiful, and that's the case with Amcor when it comes to reliable income. It was named to the list of payout-hiking dividend stocks at the start of 2020 after its June acquisition of Bemis. Bemis, which fell out of the S&P 500 Index and thus the Aristocrats in 2014, rejoined by merit of its merger with Amcor.
The company last raised its dividend in November 2021, by 2.1% to 12 cents a share. The analyst community expects the company to deliver average annual earnings per share growth of 5.3% over the next three to five years.
Air Products &Chemicals (APD) has spent much of the past few years restructuring. Under pressure from investors, it started to shed some weight, including spinning off its Electronic Materials division and selling its Performance Materials business.
Air Products, which dates back to 1940, now is a slimmer company that has returned to focusing on its legacy industrial gases business. But it hasn't taken its eye off the dividend, which it has improved on an annual basis for 39 years in a row. That includes a 12% upgrade in January 2021 to $1.50 a share.
"In fiscal 2020, we were proud to return about $1.1 billion to our shareholders through our dividend while having significant distributable cash flow for high-return industrial gas investments," CEO Seifi Ghasemi said in a press release at the time.
Aflac (AFL) is a supplemental insurance company – popularized by the loud Aflac duck – with roots going back to 1955 that covers numerous workplace offerings, such as accident, short-term disability and life insurance.
Although the COVID-19 pandemic slammed the insurance industry, AFL stock returned to pre-crash levels by early 2021, helped by the market's confidence in its dividend. And with a conservative payout ratio and almost four straight decades of dividend growth, that confidence is indeed well placed.
Aflac last raised its payout in November 2021, upping the quarterly distribution by 21.2% to 40 cents per share.
Exxon Mobil (XOM) remains one of the world's largest energy companies and is the biggest oil company by market value in the U.S. It was removed from the blue-chip Dow Jones Industrial Average in August 2020, and will likely be dropped from the Dividend Aristocrats in January.
This dividend stalwart and its various predecessors have strung together uninterrupted payouts since 1882. To its credit, XOM was one of the few energy companies that didn't cut or suspend its payout amid the pandemic-caused crash in oil prices.
However, it did put a pause on its dividend growth.
The Dow component's quarterly distribution remained unchanged in 2020 amid the COVID-19 crisis. However, membership in the Dividend Aristocrats is based on consecutive increases to the annual payout; a 1.1% bump to the dividend in October 2021 ensured that XOM will have a slightly higher annual payout than in 2020, and thus remain in the club.
The name Franklin Resources (BEN) might not be well-known among investors; however, along with its subsidiaries, it's called the more familiar Franklin Templeton investments. The global investment firm is one of the world's largest with $1.53 trillion in assets under management, and is known for its bond funds, among other offerings.
Mutual fund providers have come under pressure because customers are eschewing traditional stock pickers in favor of indexed investments. However, Franklin has fought back in recent years by launching its first suite of passive exchange-traded funds.
Meanwhile, the asset manager remains attractive as an income provider for investors looking for the best dividend stocks. It has raised its dividend annually since 1981, including a 3.6% hike to 29 cents per share quarterly announced in December 2021.
Thanks to its 2017 acquisition of Valspar, Sherwin-Williams (SHW) is one of the largest paints, coatings and home-improvement companies in the world.
Inkomensbeleggers hoeven zich zeker geen zorgen te maken over de gestage en stijgende dividendstroom van Sherwin-Williams. SHW has hiked its distribution every year since 1979. The most recent hike came in February 2021 with a 23.1% raise to the quarterly payment to $1.65 per share. Additionally, the board added 15 million shares to the firm's stock repurchase authorization.
SHW's dividend now boasts a 10-year annualized growth rate of 272%.
Medtronic (MDT), one of the world's largest makers of medical devices, is an income machine. Most recently, in May 2021, MDT lifted its quarterly payout by 8.6% to 63 cents a share. Its dividend per share has grown by 47% over the past half-decade and has grown at a 16% compounded annual growth rate over the past 44 years, Medtronic says.
MDT is able to steer generous sums of cash back to shareholders thanks to the ubiquity of its products. It holds more than 47,000 patents on products ranging from insulin pumps for diabetics to stents used by cardiac surgeons.
Look around a hospital or doctor's office – in the U.S. or in more than 160 other countries – and there's a good chance you'll see its products.
Clorox (CLX), whose brands include its namesake bleaches, Glad trash bags and Hidden Valley salad dressing, was a big early beneficiary of the pandemic as demand surged for its ubiquitous cleaning materials.
That surge in demand has since passed, but the dependable and defensive nature of Clorox's business has allowed the company to increase its payout every year since 1977. The most recent raise came in June 2021 with a 5% bump to $1.16 per share per quarter.
CLX boasts a reasonale payout ratio and ample free cash flow, which should ensure a 45th consecutive increase to the dividend in 2022.
The world's largest hamburger chain also happens to be a dividend stalwart. Changing consumer tastes will always be a risk, but McDonald's (MCD) dividend dates back to 1976 and has gone up every year since. That's the power of being a consumer giant that has been able to adjust itself to changing consumer tastes without losing its core.
MCD last raised its dividend in September 2021, when it lifted the quarterly payout by 7% to $1.38 a share. That marked its 45h consecutive annual increase. The company's 10-year annualized dividend growth rate stands at 123%. And over the past 20 years? The annualized growth rate tops 2,244%.
U.K.-based water-treatment company Pentair (PNR) whose divisions include Flow Technologies, Filtration &Process and Aquatic &Environmental Systems, is always looking to expand its capabilities.
In early January 2021 it closed on its acquisition of Rocean, a maker of countertop filtration systems for the home. Terms were undisclosed. That followed its 2019 acquisition of Aquion for $160 million in cash.
Pentair has raised its dividend annually for 46 straight years, most recently in December 2021 by 5% to 21 cents a quarter. A modest payout ratio and consistently ample free cash flow helps ensure that Pentair will continue to be one of the best dividend stocks.
Tracing its roots back to a single drugstore founded in 1901, Walgreens Boots Alliance (WBA) has boosted its dividend every year for more than four decades. Mostly recently, in July 2021, it raised the quarterly dividend by 2.1% to 47.75 cents per share. WBA's five-year annualized dividend growth rate now stands at 32.6% as a result.
As for its origins, Walgreen Co. merged with Alliance Boots – a Switzerland-based health and beauty multinational – in 2014 to form the current company. Walgreens Boots Alliance and its predecessor company have paid a dividend in 355 straight quarters, or more than 88 years.
Automatic Data Processing (ADP) is the world's largest payroll processing firm, responsible for paying nearly 40 million employees and serving more than 920,000 clients across 140 countries.
Through good economic times and bad, one of ADP's great advantages is its "stickiness." After all, it's complicated and expensive for corporate customers to change payroll service providers. That competitive advantage helps throw off consistent income and cash flow. In turn, ADP has become a dependable dividend payer – one that has provided an annual raise for shareholders since 1975.
ADP's most recent dividend increase came in November 2021 when it lifted the quarterly payout 11.8% to $1.04 per share. The company's five-year annualized dividend growth rate stands at 83%.
The world's largest company by revenue might not pay the biggest dividend, but it sure is consistent. Walmart (WMT) has been delivering meager penny-per-share increases to its quarterly dividend since 2014, including February 2021's bump to 55 cents per share.
But that's been enough to maintain its 47-year streak of consecutive dividend increases. WMT's annualized payout now stands at $2.20 per share, up 1.8% from the $2.16 per share it returned the prior year.
And shareholders can count on the increases to keep coming. The discount retailer, which operates approximately 11,400 stores and e-commerce websites under 54 banners in 26 countries, is a cash machine. WMT has generated average annual free cash flow of more than $15 billion over the past seven years.
Archer Daniels Midland (ADM) processes ingredients for food and feed, including corn sweeteners, starches and emulsifiers such as lecithin. It also has a commodity trading business. It's a truly global agricultural powerhouse, too, boasting customers in 200 countries served by more than 800 facilities.
Archer Daniels Midland has paid out dividends on an uninterrupted basis for 89 years. The most recent hike came in January 2021, when ADM increased the quarterly payout by 2.8% to 37 cents a share. The move extended the dividend stock's streak of annual raises to 47 years.
Consolidated Edison (ED) is the largest utility company in New York State by number of customers. Founded in 1823, it provides electric, gas or steam services to roughly 3.5 million customers in New York City and Westchester County. ConEd also happens to be North America's second-largest solar power provider, and is investing in electric vehicle charging programs and other green energy endeavors.
Like most utilities, Consolidated Edison is highly regulated but enjoys a fairly stable stream of revenues thanks to limited direct competition – but not a lot of growth. The longtime Dividend Aristocrat has hiked its annual distribution without interruption for close to five decades. In January 2021, the utility raised its quarterly payout 1.3% to 77.5 cents per share from 76.5 cents per share.
Formerly known as McGraw Hill Financial, S&P Global (SPGI) is the company behind S&P Global Ratings, S&P Global Market Intelligence and S&P Global Platts. Although most investors probably know it for its majority stake in S&P Dow Jones Indices – which maintains the benchmark S&P 500 index and the blue-chip Dow Jones Industrial Average – it's also a central player in corporate and financial analytics, information and research.
S&P Global has paid a dividend each year since 1937 and is one of fewer than 25 companies in the S&P 500 that has increased its dividend annually for at least 48 years, the company notes. Most recently, in January 2021, SPGI raised its quarterly payout by a healthy 15% to 77 cents a share.
Leggett &Platt (LEG) has its hands in several pies, including producing steel wire; designing and manufacturing seating support systems for automobiles; and making components for manufacturers of upholstered furniture, beds and other home furnishings.
Although it's not a particularly famous company, it has been a dividend champion for long-term investors. Or had been, anyway. After 48 straight years of annual dividend increases, LEG did not lift the payout in 2020.
However, Leggett &Platt will maintain its membership in the Aristocrats thanks to a 5% upgrade to its dividend, to 42 cents per share, in May 2021, continuing its streak of increased payouts on an annual basis.
Nucor (NUE) is the largest U.S. steelmaker, but it's perhaps even more well known for its almost unrivaled commitment to dividend growth. As one of the best dividend stocks, Nucor has increased its dividend for 49 straight years, or every year since it began paying dividends in 1973.
The most recent increase came in December 2021 when NUE lifted the quarterly disbursement more than 23% to 50 cents per share. Nucor returned nearly $3.53 billion to shareholders in the form of share repurchases and dividend payments during the first 11 months of 2021.
Kimberly-Clark's (KMB) well-known brands include Huggies diapers, Scott paper towels and Kleenex tissues. Like other makers of consumer staples, Kimberly-Clark holds out the promise of delivering slow but steady growth along with a healthy dividend to drive total returns.
Kimberly-Clark has paid out a dividend for 84 consecutive years and has raised the annual payout for 49 consecutive years. In January 2021, the board of directors approved a 6.5% increase in the quarterly dividend to $1.14 a share. KMB also authorized a new $5 billion share repurchase program that supplements the current $5 billion authorization, which is expected to be completed later this year.
VF Corp. (VFC) is an apparel company with a large number of brands under its umbrella, including The North Face outdoor products, Timberland boots and Eastpak backpacks.
Importantly, as acquisitive as VFC has traditionally been, it's never been shy about tailoring its portfolio to maintain maximum profitability. In 2019, the company spun off its jeans business to shareholders via the publicly traded Kontoor Brands (KTB). The following year VFC acquired streetwear brand Supreme, but also divested its occupational workwear brands and business.
That sort of flexibility helps the company maintain the free cash flow required to keep the dividend increases coming. And, indeed, they do keep coming.
VFC in October 2021 raised its dividend for a 49th consecutive year – a 2% increase to 49 cents per share per quarter. The company also reinstated its share repurchase program, with an authorization to buy back up to $2.8 billion of its common stock. VFC suspended share repurchases in April 2020 due to the COVID-19 pandemic.
Not too long ago, investors fretted over a long-term slide in sales of carbonated beverages, but that turned out not to be a secular trend after all. Indeed, Grand View Research forecasts the global market for fizzy drinks to produce a compound annual growth rate of 4.7% through 2028.
Besides, PepsiCo (PEP) has an ace up its sleeve with its snacks business. The company's Frito-Lay division is known for Doritos, Tostitos, Rold Gold pretzels, and numerous other brands. Meanwhile, demand for salty snacks remains solid.
Het komt neer op? PEP's business remains fundamentally strong, and that should keep its dividend-growth streak intact. PepsiCo declared its 49th straight annual increase in May 2021 with a 5% bump in the quarterly dividend to $1.075 per share.
Abbott Laboratoria (ABT) manufactures a wide variety of healthcare goods. Its portfolio includes branded generic drugs, medical devices, nutrition and diagnostic products. Some of its best-known products include Similac infant formulas, Glucerna diabetes management products and i-Stat diagnostics devices.
Abbott Labs dates all the way back to 1888. It first paid a dividend in 1924 and its dividend growth streak is long-lived too, at 50 years and counting. The last payout hike came in December 2021 — a 4.4% increase to 47 cents per share quarterly.
Medical devices maker Becton Dickinson (BDX) has bulked up quite a bit over the past few years. In 2015, it acquired CareFusion, a complementary player in the same industry. Then in 2017, it struck a $24 billion deal for fellow Dividend Aristocrat C.R. Bard, another medical products company with a strong position in treatments for infectious diseases.
As a result of all that M&A, BDX boasts a highly diversified portfolio of products – and the ample free cash flow needed to support continued dividend growth. BDX last raised its payout in November 2021 with a 4.8% raise to the quarterly dividend to 87 cents a share.
PPG Industries (PPG) makes coatings and paints for numerous industries, including aerospace, architecture, automotive and packaging. Its sprawling operations employ roughly 47,000 people in more than 50 countries.
PPG has paid a dividend since 1899 and has raised it annually for 50 years. A below-average payout ratio and solid outlook for long-term earnings growth should keep the dividend increases coming. PPG's last raise came in July 2021 with a 9.3% bump in the quarterly distribution to 59 cents per share.
Target (TGT) might be the No. 2 discount retail chain after Walmart in terms of revenue, but it doesn't take a back seat to the behemoth from Bentonville when it comes to dividends.
Target paid its first dividend in 1967, seven years ahead of Walmart, and has raised its payout annually since 1972. The last hike came in June 2021, when the retailer raised its quarterly disbursement by a whopping 32.4% to 90 cents a share.
With its well-below-average payout ratio, income investors can count on Target to keep hitting the mark for dividend growth. Indeed, over the past 10 years, its annualized dividend growth rate comes to more than 138%.
W.W. Grainger (GWW) – which not only sells industrial equipment and tools, but provides other services such as helping companies manage inventory – is expected to generate steady if not spectacular sales growth for the next few years. EPS growth, however, is forecast to increase at a double-digit percent rate.
Happily for the income-minded, Grainger has achieved annual dividend growth for a half century and maintains a below-average payout ratio. It renewed its Dividend Aristocrats membership card in April 2021 when it announced a 5.9% increase in the quarterly payout to $1.62 per share.
AbbVie (ABBV) is one of the highest yielders on this list of the best payout-improving dividend stocks. The pharmaceutical company was spun off from fellow Dividend Aristocrat Abbott Laboratories in 2013.
Including its time as part of Abbott, AbbVie has upped its annual distribution for 50 consecutive years. The most recent hike – an 8.5% increase to the quarterly payment to $1.41 per share – was declared in October 2021.
The company's best-selling treatments include Humira:a rheumatoid arthritis drug that has been approved for numerous other ailments, and that appears is on pace to surpass Lipitor as the best-selling drug of all time. AbbVie also makes cancer drug Imbruvica, as well as testosterone replacement therapy AndroGel.
Founded in 1912, Illinois Tool Works (ITW) makes construction products, car parts, restaurant equipment and more. While ITW sells many products under its namesake brand, it also operates businesses including Foster Refrigerators, ACME Packaging Systems and the Wolf Range Company.
In August 2021, Illinois Tool Works raised its quarterly dividend by 7% to $1.22 cents a share, bringing its streak of annual increases to 50 years. However, the company notes that excluding a period of government controls in 1971, that streak would stretch to 58 years. Either way, ITW's dividend sports a 10-year annualized growth rate of 240%.
Years of acquisitions have made Sysco (SYY) the food services and supply giant it is today. And the company's scale really came in handy during the pandemic, when it had to weather the closure of restaurants, bars and other food-service venues.
Happily for shareholders, the sudden and sharp downturn couldn't stop SYY from hiking its dividend for a 52nd consecutive year. The company last raised its payout in May 2021 with a 4.4% bump to 47 cents per share per quarter.
Power- and hand-toolmaker Stanley Black &Decker (SWK) has improved its cash distribution annually for more than half a century, including a 13% increase to 79 cents per share quarterly in July 2021.
SWK has bulked up through a series of deals over the past five years or so, including the acquisitions of Newell Tools, the Craftsman tool brand, IES Attachments, Nelson Fastener Systems and Consolidated Aerospace Manufacturing.
A low payout ratio and ample free cash flow should keep it SWK's dividend growth streak going.
Real estate investment trusts such as Federal Realty Investment Trust (FRT) are required to pay out at least 90% of their taxable earnings as dividends in exchange for certain tax benefits. Thus, REITs are well known as some of the best dividend stocks you can buy.
And few have been steadier than FRT, which owns retail and mixed-use real estate in several major metropolitan areas. Federal Realty Investment Trust has now hiked its payout every year for 54 years – the longest consecutive record in the REIT industry. It's latest increase – upping the quarterly dividend by a penny to $1.07 per share – was announced in August 2021.
Hormel Foods (HRL) is best known for Spam, but it's also responsible for its namesake meats and chili, Skippy peanut butter, Dinty Moore stews and House of Tsang sauces, among other brands.
But it shouldn't go unnoticed that the packaged food company is about as reliable as they come when it comes to income investing, having raised its payout every year for more than five decades.
Indeed, in November 2021, Hormel announced its 56th consecutive dividend increase – a 6% raise to 26 cents per share quarterly. The packaged foods company is rightly proud to note that it has paid a regular dividend without interruption since becoming a public company in 1928.
Als het gaat om ketens voor woningverbetering, krijgt Home Depot (HD), een lid van de Dow Jones Industrial Average, alle eer. But rival Lowe's (LOW) is the superior dividend grower.
Lowe's has paid a cash distribution every quarter since going public in 1961, and that dividend has increased annually for more than half a century. Most recently, in May 2021, Lowe's lifted its quarterly payout by 33% to 80 cents per share. Home Depot is a longtime dividend payer, too, but its string of annual dividend increases dates back only to 2010.
Lowe's 10-year annualized dividend growth rate now stands at 463%.
Colgate-Palmolive (CL) sells a wide range of consumer staples brands including its namesake toothpaste and dish soap, as well as Speed Stick deodorant, Murphy cleaning products and Tom's of Maine personal-care products.
Demand for Colagte's products tends to remain stable in both good economic times and bad, and that drives the free cash flow need to maintain its dividend growth streak.
And what a streak it is. Colgate's dividend dates back more than a century, to 1895, and the company has increased it annually for 59 years. CL last raised its payment in March 2021, upping the quartley distribution by a penny to 45 cents per share.
Johnson &Johnson (JNJ), founded in 1886 and public since 1944, operates in several different segments of the healthcare industry. In addition to pharmaceuticals, it makes over-the-counter consumer products such as Band-Aids, Neosporin and Listerine. It also manufactures medical devices used in surgery.
JNJ's diversification across three major business segments adds fortitude to this defensive dividend stock, and that helps income investors sleep better at night. The healthcare giant has increased its payout for nearly three decades and counting. The most recent hike came in April 2021 when JNJ increased the quarterly dividend by 5% to $1.06 per share.
Coca-Cola (KO) has long been known for quenching consumers' thirst, but it's equally effective at quenching investors' thirst for income. The company's dividend history stretches back to 1920, and the payout has swelled for 59 consecutive years. The last hike, announced in February 2021, was admittedly modest, though, at 2.4% to 42 cents per share per quarter.
Coca-Cola has worked hard to expand its offerings beyond traditional carbonated beverages, adding bottled water, fruit juices, sports drinks and teas to its product lineup. Naast het gelijknamige merk Coca-Cola heeft KO ook sportnamen als Minute Maid, Powerade, Simply Orange en Vitaminwater.
Property and casualty insurer Cincinnati Financial's (CINF) offerings include life insurance, annuities, umbrella insurance and a wide range of business insurance products.
Shares took a beating during the worst of the pandemic – and have since come bounding back – but even when CINF was bottoming out investors knew they could count on their dividends. Indeed, at 61 consecutive years and counting, Cincinnati Financial boasts one of the longest dividend growth streaks of any Dividend Aristocrat.
The P&C insurer most recently lifted its quarterly payout in January 2021, by 5% to 63 cents per share.
Shares in 3M (MMM), which makes everything from adhesives to electric circuits to N95 respirators, have been a long-time market laggard. But as much as this Dow stock has been a disappointment in terms of price appreciation, there's no questioning its value as a compounding source of income.
Indeed, the conglomerate's dividend dates back more than a century. Even better, 3M has been delivering annual dividend increases to investors for 63 years. The most recent hike came in early February 2021 with a 1% bump in the quarterly payout to $1.48 per share.
With major brands such as Tide detergent, Pampers diapers and Gillette razors, Procter &Gamble (PG) is among the world's largest consumer products companies.
Although the economy ebbs and flows, demand for products such as toilet paper, toothpaste and soap tends to remain stable. That hardly makes P&G completely recession-proof, but it does make the grade as one of the best dividend stocks because it's an equity income machine.
The Dow Jones Industrial Average component has paid shareholders a dividend since 1890, and has raised its payout annually for 65 years in a row. P&G's most recent raise came in April 2021 with a 10% bump to 86.98 cents per share quarterly.
Fabrikant van auto- en industriële vervangingsonderdelen Echte onderdelen (GPC) is best-known for the Napa brand. However, it also has deep roots in Mexico, where it operates under the AutoTodo brand, as well as Canada, where it operates as UAP.
Founded in 1928, Genuine Parts has long made returning cash to shareholders a priority.
The company has paid a cash dividend every year since going public in 1948 – or 65 consecutive years. The last hike – a 3% improvement to 81.5 cents per share quarterly – came in February 2021.
Emerson Electric (EMR) makes a wide variety of industrial products, ranging from control valves to electrical fittings.
The company has paid dividends since 1956 and has boosted its annual payout for 66 consecutive years, including its last increase – 2% to 51.5 cents per share quarterly – declared in November 2021. As a result, EMR's three-year annualized dividend growth rate stands at 4.2%.
With a reasonable payout ratio and plenty of free cash flow, investors can count on Emerson Electric to keep the dividend hikes coming.
Dividend growth has been a priority for Dover (DOV), which at 66 consecutive years of annual distribution hikes underscores its commitment to returning cash to shareholders.
The industrial conglomerate has its hands in all sorts of businesses, from Dover-branded pumps, lifts and even productivity tools for the energy business, to Anthony-branded commercial refrigerator and freezer doors. It's not an exciting business, but it can be a remunerative one.
Dover last raised its payout in August 2021, when it upped the quarterly outlay by 1% to 50 cents per share.
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