Download - Top 10 Dividend Stocks to Own Forever
Wyatt Investment Research presents
Top 10 Dividend Stocks To Own Forever
What are forever dividend stocks?
• some of the best stocks that investors can own forever are dividend stocks
• Numerous studies show that dividend paying stocks outperform companies not paying dividends
What are Forever Dividend Stocks?
– Stocks that have paid dividends for a very long-time
– the track record of dividend increases on all of these stocks are more than impressive
– they’ve consistently increased their payments to
shareholders for many years
Procter & Gamble (NYSE:PG)
• P&G pays a solid 3.2% dividend yield and has increased its dividend for every year for the last 57 years- that’s the longest number of yearly increases on our list of 10 stocks!
• P&G has a vast portfolio of consumer products and a very broad geographical reach
• It sells its products in over 180 countries
• 25 of its brands bring in a billion dollars or more a year
• A few notable brands include Head & Shoulders, Gillette, Crest, Oral-B, Duracell, Gain and Tide
• The company is also increasing its entry of these brands into developing market
• In 2011, developing markets generated 35% of revenues, but in 2013 that number was up to 39%
No.
1
• AT&T pays the highest dividend yield on our list, coming in at 5.3%
• Its streak of annual dividend increases spans 29 years
• It’s one of the U.S.’s largest mobile operators
• The number of smartphones being sold across the
world are on the rise, which is a big positive for AT&T
• AT&T has a churn rate that’s below 1.1%
• It also made a leap into the prepaid market by buying
up Leap Wireless
• AT&T remains a leader in a fast growing market, where the IDC sees
worldwide smartphone shipments growing at an annualized rate of 18.4%
through 2016
No.
2 AT&T (NYSE:T)
Altria Group (NYSE:MO)
• Altria Group has one of the best dividends on the list
• Its dividend yield is the second highest on our list at 4.9%
• its streak of 44 years of annual dividend increases is the second longest, behind only P&G
• Altria Group is the U.S.’s largest tobacco company
• Its Marlboro brand is the largest selling brand in the U.S.
• It’s also looking to get more active in the higher margin smokeless tobacco space
– It’s doing this by partnering with Philip Morris (NYSE:PM) to sell various products, which gives the
company access to international markets
No.
3
Clorox (NYSE:CLX) • Clorox’s dividend is nearly as great as P&G’s
• Clorox‘s dividend yield is 3.2% and it has upped its annual payment for the last 36 years
• Clorox was actually spun-off from P&G in 1969
• Its consumer products portfolio is made up of various household cleaning, specialty food and natural personal care products
• Like P&G, Clorox markets its products in over 100 countries
• But it’s still heavily tied to the U.S., leaving room for the company to increase its exposure to faster growing developing markets
• Last year, nearly 80% of its sales were from
the U.S.
• Clorox also derives over a quarter of its
revenues from Wal-Mart (NYSE:WMT),
which also happens to be the world’s
largest retailer
No.
4
SYSCO Corporation (NYSE:SYY)
• Sysco has one of the best streaks of annual dividend increases at 43 years. Its dividend yield is at 3.2%
• Sysco is one of the key food distributors in the U.S., supplying the foodservice industry
• Earlier this year it agreed to buy the second largest food distributor in the U.S., US Foods
• Sysco distributes various food items from meats to fully prepared entrees
• This increases Sysco’s reach, but still ties it heavily to North America
• 99% of sales are generated in the U.S.
and Canada, leaving room for Sysco
to tap international markets
No.
5
Pepsi Co (NYSE:PEP)
• PepsiCo pays a 3.1% dividend yields
• Its string of annual dividend increases stands at 41 years
• The company has a very recognizable portfolio of brands and is the largest food and beverage
company in North America
• Its key beverage brands includes Pepsi, Mountain Dew, Gatorade, and Tropicana
– All of which generate more than $1 billion in annual revenues.
• One of the keys to PepsiCo is that it also has a snacks business, unlike Coca-Cola (NYSE:KO)
• PepsiCo’s major food brands include Lay’s, Doritos, Cheetos and Quaker. And shares of
PepsiCo are also trading at a lower P/E ratio than rival Coca-Cola
No.
6
McDonald’s (NYSE:MCD)
• This fast food company pays a 3.2% dividend yield
• But the other great part of its dividend is that it’s upped it for 37 consecutive years
• Its dividend payout is the second lowest on our list, coming in at 56%
• McDonald’s remains the largest fast food company in the world
• As far as the U.S. goes, McDonald’s continues to dwarf its top competitors in sales, which
includes Burger King (NYSE:BKW) and Wendy’s (NASDAQ:WEN)
• McDonald’s is making coffee a greater focus
– It has already expanded its in-store offerings of new
coffee items
– it’s looking to launch a McCafe brand packaged coffee
to be sold in supermarkets later this year
No.
7
Southern Company (NYSE:SO)
• This electricity producer offers a healthy 4.5% dividend yield
• It managed to increase its dividend payment for 12 straight years
• It’s one of the U.S.’s largest electricity producers, serving around 4.4 million
customers in the Southeast
• shares are actually down over the last 12 months
– This comes as the summer was warmer than expected.
• Southern Company has a number of growth opportunities
– These include the largest biomass generation plant and a wind-data study for
wind farm feasibility in Alabama
– it’s also building the U.S.’s first nuclear reactors in some 35 years
No.
8
Waste Management (NYSE:WM)
• The U.S.’s largest trash disposal company pays out a 3.5% dividend yield
• Its dividend payment has been increased in each year over the last decade
• It services over 20 million customers
• Its revenues are generated from a variety of segments, with the keys areas being trash collection and landfills
• Together, they generate nearly 70% of the company’s sales
• As the global population rises, there will be a
steady increase in the need for trash
collection and disposal, which is a
big positive for Waste Management
No.
9
Lockheed Martin (NYSE:LMT)
• Lockheed Martin pays a 3.3% dividend yield
• Its dividend payout is the lowest of the 10 stocks on our list, coming in at 49%
• The company has increased its dividend for 11 straight years
• Lockheed Martin ranks as the largest military weapons maker in the world
• It still generates about 80% of revenues from the U.S. government
• Lockheed Martin’s key products are its fighter jets, namely the F-35
• This F-35 jet accounted for just over 15% of total sales in 2013
• The alleviation of the budget sequestration last
year was a positive for Lockheed Martin and
other defense contractors
No.
10
Income investing isn’t just about the yield.
Sure, the top 10 dividend stocks to own forever pay a yield that’s above 3%. But
nearly all of these companies dominate their respective industries and they all
have upped their annual dividend payments for at least a decade. Investing in
dividend stocks that you can literally own forever is a great way to build wealth.
Visit us at Wyatt Investment Research today, for more information on investing.
Mega-dividends
Ian Wyatt has found 3 stocks that pay dividends so big — you can retire on them. The Wall Street Journal calls them, “mega-dividends.” These stocks have a history of consistently RAISING their dividends… quarter after quarter. In fact, one of these cash-cranking companies hiked its dividend 10-fold! So, if these ever-increasing payouts sound good to you… Click here for all the details.
