top 10 dividend stocks to own forever
DESCRIPTION
In this presentation we break down the top 10 dividend stocks that all investors should be aware of. The dividends paid by these companies are reliable and profitable.TRANSCRIPT
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.
