According to Bankrate.com, savings accounts yields average roughly 0.47% and five-year certificates of deposit (CDs) average roughly 1.71%. All individuals need to assume a little more risk if they want a higher rate of income.
Looking for stocks that belong to the “dividend aristocrat” list represents a good place to start the search for higher yields. Dividend aristocrats include companies that have raised their dividends for at least 25 consecutive years, giving an indication of their financial prudence. Typically these are large, mature companies that grow revenue and earnings slowly.
Keep in mind that investing in conservatively managed companies such as these comes with a little more risk than investing in a savings account or CD, but it also provides the potential for a higher yield and small capital gains to boost your future income. Let’s take a look at five companies that consistently give their shareholders raises.
AT&T Inc. (NYSE: T) is a communications holding company that provides traditional landline voice and data service, in addition to cell phone communications. Last December, AT&T gave its shareholders a raise for the 31st straight year. AT&T currently pays its shareholders $1.88 per share per year and yields an amazing 5.5% annually.
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Coca-Cola Co. (NYSE: KO) makes, sells and distributes beverages. In February, Coca-Cola’s board of directors declared its 52nd annual dividend raise. The company pays its shareholders $1.32 per share per year and yields 3.3% annually.
PepsiCo Inc. (NYSE: PEP) makes, sells and distributes beverages, snacks and foods across the globe. The company declared its 43rd consecutive dividend increase in May. Currently, the company pays its shareholders $2.81 per share per year, yielding a respectable 3% annually.
Genuine Parts Co. (NYSE: GPC) sells mostly automotive parts under the Napa label. It also sells industrial products under the Motion Industry label, office products under the S.P. Richards label and electronic products under the EIS label. The company raised its dividend 59 consecutive years, as of 2015. The company now pays its shareholders $2.46 per share per year and yields 2.8% annually.
Wal-Mart Stores Inc. (NYSE: WMT) is the largest retailer in the world in terms of revenue, according to the National Retail Federation’s website. In February, Wal-Mart increased its dividend for the 42nd year in a row. Currently, the company pays its shareholders $1.96 per share per year, yielding 2.7% annually.
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These companies represent mature, conservatively managed companies. By no means are future dividend raises guaranteed. But in the business world, winners tend to keep winning, and the shareholders of these companies could potentially benefit in the form of higher dividend-based income and the potential for capital gains.
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