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.
ALSO READ: 5 Big Defensive Dividend Stocks to Buy Trading at Deep Discounts
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.
ALSO READ: 5 Fresh Dividend Hikes Too Important to Ignore
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.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
