With November here, many investors are looking toward Thanksgiving, the holidays, and the end of the year. The stock market went through some of the biggest combined net selling from August to October across global equities ever. The massive sell-off was the second most over three months in the past ten years. The current rally has been fueled by a significant drop in Treasury yields on hopes that the Federal Reserve will end the long series of hikes. However, it may be premature, so it makes sense for conservative investors to remain cautious.
We decided to screen the Dividend Aristocrats list, looking for the companies that have raised their dividends the longest. Five look like great ideas now for worried investors looking for some growth and dependable income.
The 67 companies that made the cut for the 2023 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight. But the requirements go even further, with the following attributes also mandatory for membership on the dividend aristocrats list:
- Companies must be worth at least $3 billion each quarterly rebalancing.
- Average daily volume of at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date.
- Be a member of the S&P 500
3M
This is a top company that could jump with continued economic pick-up and has raised the current stellar 6.63% dividend for 65 years. 3M Company (NYSE: MMM | MMM Price Prediction) provides diversified technology services in the United States and internationally. The company operates through four segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.
- The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; auto body repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles.
- The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety.
- The Healthcare segment offers healthcare procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontic solutions; and filtration and purification systems.
- The Consumer segment provides consumer bandages, braces, supports, and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products.
The Coca-Cola Company
This company is a top Warren Buffet holding as he owns a massive 400 million shares. Shareholders are paid a solid 3.26% dividend. The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the Company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Fanta
- Sprite
- Coca-Cola Zero
- Vitaminwater
- Powerade
- Minute Maid
- Simply
- Georgia
- Del Valle
Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers. Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.
Coca-Cola has raised the dividend for a remarkable 61 years.
Emerson Electric
This stock has rallied nicely off the lows posted in the spring and pays a 2.28% dividend. Emerson Electric (NYSE: EMR) is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets.
- The company’s Automation Solutions business helps process, hybrid, and discrete manufacturers maximize production and protect personnel and the environment while optimizing energy and operating costs.
- The Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency, and create a sustainable infrastructure.
Emerson Electric has lifted the dividend investors receive for 66 straight years.
Johnson & Johnson
With a diverse product base and an excellent brand, this is among the most conservative big pharmaceutical plays and pays a reliable 3.17% dividend. Johnson & Johnson (NYSE: JNJ) is one of the top market cap stocks in the healthcare sector and raised the dividend for shareholders this year for the 61st consecutive year.
With everything from medical devices to over-the-counter health items and prescription drugs, the company remains one of the most diversified healthcare names on Wall Street.
Johnson & Johnson also has one of the most exciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding for conservative accounts with a long-term investment.
The company generates a little over half of its sales in international markets, which are expected to see higher spending on healthcare over the next ten years and beyond.
The Procter & Gamble Company
The company offers a substantial 2.48% dividend with many recognizable products. The Procter & Gamble Company (NYSE: PG) is one of the world’s largest consumer products companies, operating under five segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby and Family Care.
Brands include:
- Pampers,
- Tide,
- Bounty,
- Charmin,
- Gillette,
- Oral B,
- Crest,
- Olay,
- Pantene,
- Head & Shoulders,
- Ariel,
- Gain,
- Always,
- Tampax,
- Downy,
- Dawn.
P&G sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.
The company has been innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors with continued steady growth and dividends the company has raised for 67 years.
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