5 of My favorite Long Term Dividend Stocks
I enjoy the art of Dividend Growth Investing. I look for companies that have a competitive advantage in there field and are leaders in there industry. These companies are at the top for a reason and I look for companies that have been leaders over a long period of time. A company must have been paying dividend for 10 consecutive years and also been raising dividends for at least 10 years before they will meet my entry criteria. These are only a few criteria I use but these to me are the most important. I want to build a Dividend Growth portfolio that can hold up against the ups and downs of todays stock market and the market 30 years from now. I plan to use this Dividend Income as part of my retirement income along with company matched 401k programs among other small investments.
Below I have listed some of my top picks for Long Term Dividend Growth Stocks.
- Medtronic, Inc (MDT).
Medtronic operates through its six business segments that revolve
around Cardiac Rhythm Disease Management, Spinal & Biologics,
CardioVascular, Neuromodulation, Diabetes, and Surgical Technologies.
The company both manufactures and sells medical therapies that function
around specific devices. Medtronic currently supports a market
capitalization of $43 billion and a reasonable forward price-to-earnings
ratio of 10.88. Trading with similar volatility as the market, it
currently maintains a beta of 1.03. The company offers a forward annual
dividend of 2.5% with a quarterly rate of $0.26. The company maintains a
comfortable payout ratio of 30% and has been raising its dividend since
1978.
- Walgreen Co. (WAG).
As the operator of nearly 8,000 drugstores in the United States,
Walgreen operates as a local provider of prescription and
non-prescription drugs. The company was founded in 1901 and now
maintains a presence throughout all 50 states as well as Puerto Rico.
Walgreen currently supports a market capitalization of $33 billion and a
below average forward price-to-earnings ratio of 9.47. Trading
alongside the market when it comes to volatility, it currently maintains
a beta of 1.17. The company offers a forward annual dividend of 3.1%
with a quarterly rate of $0.275. The company maintains a comfortable
payout ratio of 39% and has been raising its dividend since 1976.
- Pepsico, Inc. (PEP).
Pepsico was founded in 1898 and has since grown to be one of the
largest providers of beverages and snack foods. The company has
operations around the world and supports some of the more recognizable
brands under its wings. Some of these names include Lays, Ruffles,
Doritos, Cheetos, Fritos, Quaker, Rice-A-Roni, Pepsi, Gatorade, Mountain
Dew, 7Up, and Tropicana. PepsiCo currently supports a market
capitalization of $107 billion and an above average forward
price-to-earnings ratio of 15.62. Trading with significantly less
volatility than the market, it currently maintains a beta of 0.33. The
company offers a forward annual dividend of 3.1% with a quarterly rate
of $0.538. The company maintains a feasible payout ratio of 56% and has
been raising its dividend since 1973.
- Wal-Mart Stores Inc. (WMT).
Wal-Mart operates as a large discount department store chain through
its various brand names and has operations around the world. The company
is currently the biggest private employer in the world with over 2
million employees. The company currently maintains over 10,000 retail
units in over 27 countries. Wal-Mart Stores currently supports a market
capitalization of $253 billion and an above average forward
price-to-earnings ratio of 13.95. Trading with lower volatility than the
market, it currently maintains a beta of 0.42. The company offers a
forward annual dividend of 2.1% with a quarterly rate of $0.398. The
company maintains a comfortable payout ratio of 32% and has been raising
its dividend since 1975.
- Kimberly-Clark Corporation (KMB).
As a manufacturer and marketer of healthcare products, Kimberly-Clark
operates through its four business segments of Personal Care, Consumer
Tissue, K-C Professional & Other, and Healthcare. The company
primarily produces paper-based consumer products and sells its wares
directly to supermarkets, retail outlets, drugstores, and other
distributors. Kimberly-Clark currently supports a market capitalization
of $33 billion and an above average forward price-to-earnings ratio of
14.87. Trading with volatility below the market, it currently maintains a
beta of 0.32. The company offers a forward annual dividend of 3.4% with
a quarterly rate of $0.74. The company maintains an above average
payout ratio of 63% and has been raising its dividend since 1973.
-
I hope to start a position in MDT in the near future. I believe healthcare companies stand to gain a lot as the baby boomer generation ages. The demand for treatments, medications, and medical devices should increase in the coming years. I'm a loyal Pepsi shareholder, love the dividends. I think PEP stock is a bit too pricey at the moment for new investments.
ReplyDelete