These stocks have 25 or more years of dividend increases and 2.5% or greater yield.
In a choppy 2022, many folks are returning to old safe harbors in value-oriented sectors like consumer staples, utilities and health care. But beyond simply rotating out of growth-oriented sectors like tech, one additional layer of protection some investors are seeking out includes dividend stocks. These companies provide a regular payout to shareholders both as a way to keep your portfolio moving in the right direction and as a hedge against share price declines. However, rather than just chase stocks with big yields at this moment, it may be a better long-term approach to bank on dividend stocks that are reasonably generous now but have a long track record of continued dividend increases over time. The following nine stocks have all increased their dividends for at least 25 years, and all pay at least 2.5% at current pricing. These dividends were calculated using the trailing 12-month return and the stock’s closing price on June 14.
3M Co. (ticker: MMM)
Minnesota-based chemicals and materials giant 3M Co. is a diversified stock that has customers across a host of industries, from transportation and health care to aerospace and consumer products. From products you can buy yourself at the store like Scotch tape and adhesives to specialty chemicals and coatings for manufacturers, 3M offers a wide array of items that help ensure it’s not reliant on a single customer base. This broad portfolio means consistency in revenue year in and year out, across all kinds of economic ups and downs. That’s one of the reasons MMM has been operating for more than a century with great success, and has just increased its payout for the 64th year running as of its March 2022 payout.
Dividend yield: 4.4%
AbbVie Inc. (ABBV)
Recently included in a U.S. News list of the best dividend stocks to buy and hold forever, AbbVie is as solid a dividend stock as you’ll find on Wall Street. The firm was spun out of longtime drugmaker Abbott Laboratories (ABT) in 2013, so the brand itself is not that old. However, if you trace ABBV’s roots back through its parent you get an impressive 50 straight years of dividend increases — most recently being a bump this year that resulted in a payout of $1.41 per share in May. Since the company’s inception as a standalone entity in 2013, AbbVie has increased its dividend by more than 250% in roughly a decade. And with a deep bench of branded pharmaceutical products that will have strong sales regardless of the macroeconomic environment, ABBV remains a solid stock to buy and hold for many years to come.
Dividend yield: 3.9%
Amcor PLC (AMCR)
Perhaps not as a high-profile as some of the other dividend aristocrats on this list, Amcor is a packaging products company that operates worldwide. Its products come in two main categories — “flexibles” that include sachets, pouches and films, and “rigids” that include bottles, cans and jars. The reliability of AMCR comes from the wide array of customers it holds across food and beverage, medical, personal care, and other industries. While there may not be breakneck growth ahead, Amcor is incredibly stable and has a diversified array of entrenched customers that should ensure continued success in the future — as well as continued dividend increases.
Dividend yield: 4%
Cardinal Health Inc. (CAH)
Cardinal is an integrated health care company that offers products and services worldwide to hospitals, doctors’ offices, nursing homes and other similar facilities. This includes the distribution of medical tools, laboratory products and other odds and ends, including exam gloves and bandages. Cardinal’s business isn’t as high margin as specialty branded drugs or high-tech surgery robots, but it’s about as reliable a business you’ll find as its customers have strong baseline demand for all these basic medical goods. The result is a consistent revenue stream that has powered 36 consecutive dividend increases after its most recent bump in May 2022.
Dividend yield: 3.8%
Consolidated Edison Inc. (ED)
ConEd is a long-standing utility stock that offers electric services to about 3.5 million customers in mainly the New York City area. The company was founded in 1823 and is one of the oldest publicly traded utilities on Wall Street. It reportedly has the longest stretch of annual dividend increases in the sector, with 48 straight years of increased payouts after a January increase to 79 cents a share. Like some of the other stocks on this list, ED isn’t just a reliable long-term dividend stock but also a recent outperformer in a rough environment elsewhere for equities. ConEd is up about 6% so far in 2022 even as the S&P 500 has lost more than 20% over that span.
Dividend yield: 3.5%
Exxon Mobil Corp. (XOM)
One of the best-performing sectors so far in 2022 is energy, thanks to strong inflationary pressures pushing up the price of oil and natural gas. And with a market capitalization north of $420 billion at present, it’s hard to find a company in the oil patch that’s more iconic than XOM. With shares up more than 60% this year even as the rest of the market has stumbled, there’s plenty of reason to pay attention to this stock in 2022. However, with 39 consecutive years of dividend increases for shareholders, there’s ample evidence that this Big Oil giant has what it takes to thrive in any market environment. Considering those dividend increases spanned both the 2008 financial crisis as well as the more recent pandemic-related volatility, investors can have confidence XOM will maintain its generous approach to dividends going forward.
Dividend yield: 3.7%
Franklin Resources Inc. (BEN)
Franklin Resources is the company behind 75-year-old asset manager Franklin Templeton. Some individual investors may already be familiar with its mutual funds or other products, but BEN also provides institutional services to corporations, pension plans and trusts. All told, this company has a stunning $1.5 trillion under management. Franklin Resources has increased its dividend for 42 consecutive years after a bump in April, proving a long-term commitment to its shareholders. And in this currently volatile environment where everyone is looking for expert insights to help them make sense of things, BEN continues to be in high demand among its clients and should see continued stability in the future.
Dividend yield: 4.9%
Genuine Parts Co. (GPC)
Known for its familiar NAPA auto parts brand, Genuine Parts has a rich history and nearly a century of operations dating back to the very early days of the automobile. It also has an amazing history as a provider of dividends to shareholders, with 2022 marking its 66th consecutive increase to payouts after an increase of its annual rate to $3.58 per share. That compares with the previous dividend of $3.26 per share — itself nearly 10% above last year’s level. With supply chain disruptions making new cars incredibly expensive or even impossible to snag these days, GPC is a stock that is weathering the broader market volatility just fine with a low-single-digit decline since Jan. 1. And going forward, long-term investors can bank on the well-established dividend history of this auto parts icon.
Dividend yield: 2.6%
Johnson & Johnson (JNJ)
J&J is a rock-solid health care company with an enviable balance sheet, a AAA credit rating and a storied history. Unlike some of the more volatile development-stage drugmakers out there that can see big swings, JNJ is not your typical pharmaceutical company because of its very strong consumer health business. Band-Aid bandages, Tylenol medications, Neutrogena skin care and Acuvue contact lens products are just a few of the items J&J sells at the grocery store instead of behind the pharmacy counter. And on the dividend front, you’ll be hard-pressed to find a company with a better track record of distributions: J&J has paid dividends since 1944, and in April just marked its 60th consecutive annual dividend increase.
Dividend yield: 2.6%
9 dividend aristocrat stocks to buy now:
— 3M Co. (MMM)
— AbbVie Inc. (ABBV)
— Amcor PLC (AMCR)
— Cardinal Health Inc. (CAH)
— Consolidated Edison Inc. (ED)
— Exxon Mobil Corporation (XOM)
— Franklin Resources (BEN)
— Genuine Parts Company (GPC)
— Johnson & Johnson (JNJ)
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9 Dividend Aristocrat Stocks to Buy Now originally appeared on usnews.com
Update 06/15/22: This story was published at an earlier date and has been updated with new information.
