Dividend Aristocrats are companies in the
Most importantly, regular dividend hikes fuel the magic of compounding. Indeed, many of the best stocks of all time have long histories of dividend growth.
Since reliable dividend stocks with growing payouts can provide some comfort amid market uncertainty, we took a look at the 11 Dividend Aristocrats with the longest histories of annual dividend increases. After all, when a dividend stock manages to raise its payout through good times and bad, decade after decade, you know management is making its income-reliant shareholders a top priority.
Illinois Tool Works
Market value: $48.1 billion
Dividend yield: 2.8%
Consecutive annual dividend increases: 55
Analysts' opinion: 3 buy, 0 overweight, 14 hold, 2 underweight, 4 sell
ITW operates in 57 countries and boasts more than 17,000 granted and pending patents. Its brands include the namesake
The company's most recent dividend hike was a 28% raise in August, to 88 cents per share. And investors can expect more improvements in the future, considering ITW sports a healthy payout ratio of 46.8%, which means it's paying out less than half its profits as dividends. When it made the dividend announcement, it also authorized new stock buybacks worth up to $3 billion.
Colgate-Palmolive
Market value: $56.7 billion
Dividend yield: 2.6%
Consecutive annual dividend increases: 56
Analysts' opinion: 6 buy, 1 overweight, 15 hold, 0 underweight, 3 sell
In fact, the company derives the vast majority of its sales outside the
Still, Colgate's dividend - which dates back to 1985 and has increased annually for 56 years - should survive. The hikes themselves haven't been very generous of late, however. The company's most recent dividend raise, announced in mid-March, was just 2.4% to 43 cents per share. That follows a 5% bump in 2018. Still, its recession-proof products and decent yield may make CL worth a look once the company navigates its way out of its current quagmire.
Johnson & Johnson
Market value: $368.7 billion
Dividend yield: 2.6%
Consecutive annual dividend increases: 56
Analysts' opinion: 7 buy, 1 overweight, 9 hold, 1 underweight, 0 sell
The consumer-products division has J&J embroiled in high-profile litigation over allegations that its iconic talcum powder is linked to cancer. But no matter how that turns out, it shouldn't affect those who count on JNJ's steady dividends over the long term. The health-care giant hiked its payout by 7.1% in
That should continue.
Lowe's
Market value: $84.9 billion
Dividend yield: 1.9%
Consecutive annual dividend increases: 56
Analysts' opinion: 19 buy, 4 overweight, 10 hold, 0 underweight, 0 sell
When it comes to home improvement chains, Home Depot (HD), a member of the Dow Jones Industrial Average, gets all the glory. However, No. 2 rival
Give the steadily rising dividend at least some of the credit.
Analysts expect
Coca-Cola
Market value: $194.8 billion
Dividend yield: 3.5%
Consecutive annual dividend increases: 57
Analysts' opinion: 9 buy, 4 overweight, 12 hold, 0 underweight, 0 sell
Coca-Cola (KO, $45.53) has long been known for quenching consumers' thirst, but it's equally effective at quenching investors' thirst for income. The company has paid a quarterly dividend since 1920, and those regular income checks have increased annually for the past 57 years.
Coca-Cola's core business has been challenged for some time; the U.S. market for carbonated beverages has been on the decline for more than a decade, and a few cities are trying to curb sugar consumption by implementing soda taxes. However, Coca-Cola has responded by adding bottled water, fruit juices and teas to its product lineup. In addition to the namesake Coca-Cola brand, KO also sports names such as Minute Maid, Powerade, Simply Orange and Vitaminwater.
And in January, Coca-Cola completed the acquisition of
Cincinnati Financial
Market value: $13.8 billion
Dividend yield: 2.7%
Consecutive annual dividend increases: 59
Analysts' opinion: 1 buy, 0 overweight, 8 hold, 0 underweight, 1 sell
Income investors can expect more where that came from.
"This increase also demonstrates the board's confidence that our operating strategy will allow us to continue rewarding shareholders into the future," CEO
Analysts expect forecast average annual earnings growth of 5% for the next five years, according to Refinitiv data.
3M
Market value: $120.8 billion
Dividend yield: 2.8%
Consecutive annual dividend increases: 60
Analysts' opinion: 6 buy, 0 overweight, 11 hold, 0 underweight, 3 sell
Industrial conglomerate 3M (MMM, $208.30) - which makes everything from Post-it Notes to Scotchgard stain and water repellents to Thinsulate clothing insulation - kicked off 2019 on a down note. The Dow component lowered its 2019 profit outlook, in part because of sluggish demand from
But whatever the shorter-term holds for 3M's share price, investors can depend on the conglomerate's steady payouts over the long haul. While inclusion in the S&P 500 Dividend Aristocrats requires a minimum of 25 years of uninterrupted dividend growth, MMM has much more - its dividend has improved annually for six consecutive decades, and the payout dates back more than 100 years.
Emerson Electric
Market value: $42.5 billion
Dividend yield: 2.9%
Consecutive annual dividend increases: 62
Analysts' opinion: 11 buy, 2 overweight, 11 hold, 0 underweight, 0 sell
The prolonged downturn in oil prices weighed on Emerson for a couple years as energy companies continued to cut back on spending. Happily, analysts now say it's well-positioned to take advantage of the recovery in the energy sector. Earnings are forecast to increase at an average annual rate of a little more than 9% for the next five years.
Emerson has paid dividends since 1956 and has boosted its annual payout for 62 consecutive years, including its last hike - a marginal half-cent increase to 49 cents per share - in
Procter & Gamble
Market value: $257.0 billion
Dividend yield: 2.8%
Consecutive annual dividend increases: 62
Analysts' opinion: 7 buy, 3 overweight, 16 hold, 0 underweight, 1 sell
The economy might ebb and flow, but demand typically remains stable for essentials such as toilet paper, toothpaste and soap.
Genuine Parts
Market value: $15.9 billion
Dividend yield: 2.8%
Consecutive annual dividend increases: 63
Analysts' opinion: 1 buy, 0 overweight, 11 hold, 0 underweight, 0 sell
Automotive and industrial replacement parts maker
Since its founding in 1928, it has pursued a strategy of acquisitions to fuel growth. At the end of 2017, it bought
GPC has hiked its payout annually for more than six decades, including a 5.9% increase to 76.25 cents quarterly announced in February. That marked the company's 63rd consecutive dividend increase, tying it with our final Aristocrat - for now.
Dover
Market value: $13.4 billion
Dividend yield: 2.1%
Consecutive annual dividend increases: 63
Analysts' opinion: 6 buy, 3 overweight, 11 hold, 0 underweight, 0 sell
Industrial conglomerate Dover (DOV, $91.34) boasts the longest streak of consecutive annual dividend hikes at 63, and if all goes well, it should extend that run to 64 years sometime this summer.
Dover has its hands in all sorts of industries, from Dover-branded pumps, lifts and even productivity tools for the energy business, to Hillphoenix-branded refrigeration equipment you'd typically find in supermarkets.
This isn't an exciting business, though it did garner some headlines in 2018. Dover, feeling pressure from activist investor
Dividend growth has been a priority for Dover, which at 63 consecutive years of annual distribution hikes boasts the third-longest such streak among publicly traded companies. Dover's last dividend improvement came in
Dan Burrows is a Contributing Writer for Kiplinger.