4 Dow Stocks With 50 Consecutive Annual Dividend Raises
Investors looking to grow long term wealth should devote at least some of their portfolio to companies that pay dividends. But how do you choose which ones to add to your portfolio? If you are looking for dividend paying stocks, the most reliable companies to add to your portfolio are those that don’t just pay dividends, but that raise them regularly. These companies have long track records of creating long-term value for shareholders.
In this article, I highlight four Dow components that have raised their dividends for at least 50 consecutive years. While this doesn’t necessarily mean that they will be good investments long-term, or even that they will continue to raise their dividends with regularity, these stocks are a good place to start if you are looking to add quality income generating businesses to your portfolio.
Coca-Cola (NYSE:KO) has raised its dividend for 50 consecutive years. It pays a 3 percent dividend, which is much larger than the S&P 500’s aggregate yield, which doesn’t even breach 2 percent. It is a favorite stock of Warren Buffett who likes to say that while he doesn’t know what the stock will do this year, he knows that it will be selling more Coke in 20 years than it is selling now.
Right now, the stock appears to be somewhat expensive trading at nearly 22 times earnings. This is in-line with the S&P 500, but in general stocks are pricey now. The stock appears to be especially expensive considering that it reported an 8 percent profit decline in the most recent quarter. Nevertheless, Buffett is probably right, and when we consider that Coca Cola’s profits will probably be much higher in 20 years than they are today, we can justify owning the stock. But given my current valuation concern, I want to wait for a better entry point.