Think in years, not months, with long-term dividend payers.
With persistent volatility in the stock market this year, it’s hard for investors to know what they’re going to get as they charge across the last months of 2022. Will we see rosy headlines and a rebound like we did in July? Or will we see continued uncertainty weigh on blue chips as we did in August? If you’re stressed out by trying to swing-trade the latest headlines, then consider looking beyond what’s going on this second with your portfolio and take a longer view. The following nine “dividend aristocrats” are stocks that have an impressive track record of at least 25 consecutive years of rising dividends, along with big brands that are recognizable and dividend yields that are all 2.5% or higher.
AbbVie Inc. (ticker: ABBV)
Spun off from Abbott Laboratories (ABT) in 2013, AbbVie isn’t old enough as an independent company to make this list, but if you follow the pharmaceutical stock back to its parent, you get an amazing streak of 49 straight years of dividend increases. AbbVie was created to manage the branded drug pipeline, separate from the medical devices and diagnostic equipment provided by Abbott, so there’s admittedly a bit more risk on this side of the business. However, in the wake of a huge 2020 purchase of Allergan for $63 billion and continued success with the AbbVie product pipeline, there are predictions that AbbVie is set to become the largest pharma stock on the planet within the next five years. If that logic holds, it’s an indication that the rich history of dividends at this company is likely to continue for some time.
Dividend yield: 4.0%
Caterpillar Inc. (CAT)
A slightly more cyclical play than some of the defensive dividend aristocrats on this list, heavy machinery giant Caterpillar is still a pretty solid play for long-term investors. The $98 billion corporation is among the most respected manufacturers of construction equipment and mining gear and has deep relationships with customers that are unlikely to be disrupted in the long run, even if spending trends may wax and wane slightly. Caterpillar has paid higher dividends in each of the last 28 years.
Dividend yield: 2.6%
Chevron Corp. (CVX)
In 2022, Chevron is one of many energy stocks that investors have been attracted to thanks to their outperformance compared with the rest of Wall Street. However, there’s much more to like in the long run than just a tail wind from high oil prices this year. Namely, Chevron has increased its dividend for 35 consecutive years, the most recent increase being a boost from $1.34 to $1.42 per share. What’s more, with dividends still less than a third of next year’s projected earnings, there is ample room for future increases to these payouts going forward.
Dividend yield: 3.5%
Clorox Co. (CLX)
Many investors piled into Clorox during the pandemic because of its dominant position in cleansers and disinfectants. But while the stock has put up a more disappointing performance in 2022, it still has long-term staying power thanks to its portfolio of Clorox bleaches, Formula 409 surface cleaners, Fresh Step kitty litter and Brita water filtration products. This diverse portfolio of offerings adds up to consistent revenue that powers consistent dividends. As a result, CLX has notched an impressive 45 consecutive years of dividend growth, as well as one of the best yields on this list.
Dividend yield: 3.3%
Coca-Cola Co. (KO)
A $260 billion heavyweight of the consumer staples market, Coca-Cola Co. is a blue-chip icon and a go-to investment for many dividend investors. It commands some of the biggest soft-drink brands in the grocery store, including Sprite and Coke, as well as Smartwater, Vitaminwater, Honest Tea, Minute Maid juices, Powerade energy drinks and a host of others. Additionally, it more than meets the threshold for the dividend aristocrats, with more than six decades of dividend increases and more than 120 years of successful operations. And with Warren Buffett’s investment company Berkshire Hathaway Inc. (BRK.A, BRK.B) as Coke’s largest shareholder, there’s a lot of reason to have faith that this company has strong institutional interest that will keep shares stable in any market environment.
Dividend yield: 2.9%
Colgate-Palmolive Co. (CL)
One of the most consistent and reliable stocks on Wall Street, Colgate is a dividend aristocrat with tons of staying power. It was founded in 1806, and it’s hard to imagine the company going anywhere in the coming decades thanks to a first-rate brand portfolio that includes its namesake toothpaste and dish soap, along with Tom’s oral care products, Speed Stick deodorant, Palmolive soap, Hill’s pet food and a host of other products. Colgate announced its 60th consecutive dividend increase in March, and those dividends are only about two-thirds of total earnings, so they are sustainable going forward, too.
Dividend yield: 2.5%
Johnson & Johnson (JNJ)
It’s hard to imagine a U.S. company that is more entrenched and recession-proof than J&J. It’s in the health care sector, where revenue and profits are incredibly reliable in any economic environment. It’s also massive, a blue-chip stock that ranks among the top 10 publicly traded corporations in the country by market value. It’s also one of just two entities on Wall Street with a AAA credit rating, along with tech giant Microsoft Corp. (MSFT). And on top of that, Johnson & Johnson has a track record of more than six decades of dividend growth to make it a dividend aristocrat and then some.
Dividend yield: 2.8%
Procter & Gamble Co. (PG)
Yet another sure-fire consumer stock on the list of dividend aristocrats to buy now is P&G. Best known for its popular brands including Gillette shaving products, Tide laundry detergent and Charmin toilet paper, this company has been a mainstay of grocery shoppers. P&G’s fiscal year ends in July, and it just recorded diluted earnings per share of $5.81. That is more than enough to cover its $3.65 in annual payouts. Furthermore, P&G has been paying a dividend for more than a century, dating to its initial incorporation in 1890, and it has increased its dividend for 66 consecutive years. So if you’re looking for a reliable income investment, this stock should be on your list.
Dividend yield: 2.6%
V.F. Corp. (VFC)
Apparel giant VFC is the company behind nameplates that include North Face, Timberland, Vans, Dickies and other upscale lines. While consumer spending trends very much play into the sale of its shoes, backpacks and jackets, the diverse product portfolio and wide reach to department stores and direct-to-consumer outlets lend reliability to operations. And while the threat of inflation is real, VFC continues to perform admirably, as it is projecting modest revenue growth both this fiscal year and next year. And while earnings remain pressured slightly thanks to both input costs and currency exchange rates, VFC has an amazing track record of 48 years with consecutive dividend increases, so investors can have faith in the staying power of this dividend stock.
Dividend yield: 4.8%
9 dividend aristocrat stocks to buy now:
— AbbVie Inc. (ABBV)
— Caterpillar Inc. (CAT)
— Chevron Corp. (CVX)
— Clorox Co. (CLX)
— Coca-Cola Co. (KO)
— Colgate-Palmolive Co. (CL)
— Johnson & Johnson (JNJ)
— Procter & Gamble Co. (PG)
— V.F. Corp. (VFC)
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9 Dividend Aristocrat Stocks to Buy Now originally appeared on usnews.com
Update 09/15/22: This story was published at an earlier date and has been updated with new information.
