When we invest, some of us are not satisfied only with rise of stocks´ value in our portfolio, but require more. Except for capital gains, another type of revenue coming from holding stocks is called dividend. It is paid by companies which decided to give part of their profits to their shareholders. These companies are popular among investors who want to have money coming regularly into their accounts.
Out of almost 5 000 publicly traded companies at American stock exchanges, more than 2 200 companies (about 45%) pay dividends. About 83% of companies that are part of index S&P500 offer this type of income, and all 30 companies in Dow Jones index. There is a lot to choose from.
Below we will summarize 20 companies that proved to be most reliable and generous when it comes to dividends. To find them, we used screener on popular website dividend.com. Companies that we will show offer highest dividend yields and have been raising their dividend payments for more than 25 years. It is really long period of dividend increasing when we realize that the author of this article is even younger. We did not stop there and picked only large-cap companies and therefore leaders in their industries. All of them pay dividends every quarter.
Finally, list of these companies, their dividend yields, industries and sectors they belong to can be seen below.
|Company Name||Div. Yield||Industry||Sector|
|1||HCP Inc.||6.59%||Financial||REIT – Healthcare Facilities|
|2||AT&T||4.54%||Technology||Telecom Services – Domestic|
|3||Chevron Corp||4.15%||Basic Materials||Major Integrated Oil & Gas|
|4||Emerson Electric||3.63%||Industrial Goods||Industrial Equipment & Components|
|5||AbbVie Inc.||3.59%||Healthcare||Drug Manufacturers – Major|
|6||Target||3.42%||Services||Discount, Variety Stores|
|7||Consolidated Edison||3.35%||Utilities||Diversified Utilities|
|8||Exxon Mobil||3.23%||Basic Materials||Major Integrated Oil & Gas|
|9||Procter & Gamble||3.16%||Consumer Goods||Personal Products|
|10||Coca-Cola Co.||3.10%||Consumer Goods||Beverages – Soft Drinks|
|11||T. Rowe Price||3.02%||Financial||Asset Management|
|12||Nucor Corporation||2.91%||Basic Materials||Steel & Iron|
|13||Archer Daniels Midland Co.||2.85%||Consumer Goods||Food – Major Diversified|
|15||Kimberly-Clark||2.74%||Consumer Goods||Personal Products|
|16||Wal-Mart Stores||2.67%||Services||Discount, Variety Stores|
|17||PepsiCo||2.61%||Consumer Goods||Processed & Packaged Goods|
|18||Johnson & Johnson||2.61%||Healthcare||Drug Manufacturers – Major|
|19||Cincinnati Financial||2.56%||Financial||Property & Casualty Insurance|
|20||Genuine Parts||2.55%||Services||Auto Parts Wholesale|
Company that offers highest dividend yield and suits all criteria is HCP Inc., rewarding our investment with more than 6% in dividends yearly (div. yield is calculated by dividing yearly amount of dividend by current price of stock – in this case it is (2,3 / 34,88)*100 = 6,59%).
Going through the list, there are well-known companies like Coca-Cola, P&G or Johnson & Johnson, whose products we are likely to use or consume. We can see that 5 out of 20 companies, or 25% of companies, belong to consumer goods industry. We can diversify our dividend portfolio buying stocks of companies doing business in healthcare, services or technology, to mention some of them.
If we invest for long-term and if we would like to build passive revenue that we could either reinvest or spend, adding these companies to our portfolio may not be a bad idea. All these companies have rich history, large market cap, all of them have been increasing dividends for more than 25 years and therefore there is a chance there will be another dividend increases in future.