Many stocks pay dividends, but only 65 dividends are aristocrats. To reach this elite position, a stock must be included in the S&P 500 index and payments must be increased for 25 consecutive years under its belt. Now, a history of rising dividends is not enough to buy the stock. But there are many reasons to add these three dividend aristocrats to your portfolio and hang on to them forever.
1. Loves
In addition to being a dividend aristocrat, Loves (NYSE: LOW) There is also one of only 27 stocks that has made it to the Dividend Kings list, recording an uninterrupted payout increase of 50 years or more. In Lona’s case, it has been distributing dividends every year since 1961, after it was declared, and has increased its payments for 58 consecutive years. After its latest 9% growth at its current share price, its yield is 1.47%.
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As long as many companies achieve a track record of decades of dividend growth, their high growth days are behind them. What makes Law a lucrative dividend stock, however, is that it can give investors a strong advantage in share price. Both Law and his rivals Home Depot (NYSE: HD) Just got a banner year experience as customers roamed home and spent more of their disposable cash on home improvement projects rather than dining on vacation. Home Depot is still more profitable, but Lo Lo’s stock has returned 38.37% year-on-year in late December, compared to 25.63% for Home Depot in 2020.
The difficulties of sustaining the recent growth of sellers are slim once life gets thinner when it comes close to normal. But given the recent improvements in e-commerce and the shark’s focus on increasing its sales to commercial contractors, Lowe still has plenty of room to grow. Once the 2020 dividers return to their pre-epidemic routine, the strategy could pay off, especially if home sales remain strong. Analysts predict that Law’s earnings will grow at an annual average of 20% over the next five years, making up only its share of the dividend cake.
2. Realty income
Realty income (NYSE: s) Dividend is a 2020 newcomer to the list of aristocrats. It is a real estate investment trust (RIT) and it tends to be the preferred choice of income investors as by law they are required to distribute 90% of their taxable income to shareholders. Realty Income is also known to pay monthly dividends instead of quarterly – indeed, it has even made itself a monthly dividend company. With a yield of 4.5.66% on the current share price, it has recorded 605 consecutive monthly dividend payments and a compound average annual dividend growth of 4.4% since its announcement in 1994.
2020 has been an extraordinary year for many REITs, especially those with office fees and retail assets, while realty revenues have remained relatively unaffected by the epidemic. Even though its buildings are mostly occupied by retailers, the four largest categories of its tenants are convenience stores, drug stores, grocery stores and dollar dollar stores – all of which are trending fairly well. Although it has some gym and movie theater tenants, it collects %%% rent during the third quarter. With its shares down nearly 16% to date, realty income is a solid bet for any investor seeking monthly income from their portfolio.
3. Colgate-Palmolive
Colgate-Palmolive (NYSE: CL) There is another Dividend King, consistent. Pay year payments increase and current yield is 2.0.06%. The list of its products – toothbrush and toothpaste, soap, laundry detergent, deodorant, pet products, etc. – is fairly well customized, but not exactly exciting. Yet that’s the part that makes Colgate-Palmolive a great protective stock forever: brushing your teeth and bathing habits probably have zero relation to the health of the economy.
With 11.1% global market share for toothpaste and 31.6% global market share for manual toothbrush in 2019, the company is clearly in a difficult position to survive. Also, it is known for maintaining strong cashless cash flow, which ensures its dividend increase will be sustainable.
Colgate-Palmolive can be a tedious business. Not likely to deliver an outsize return. But when the market is volatile, you will be glad to have this boring defensive stock in your portfolio.
