Time-Tested Dividend Champions: 3 Stocks with a Century of Consistency
When it comes to investing in dividend stocks, a company’s track record can speak volumes about its ability to weather storms and adapt to changing market conditions. Three stalwart companies have been paying dividends for over 100 years, demonstrating their commitment to rewarding shareholders.
Coca-Cola: A Brand Powerhouse
Coca-Cola, a top holding of Warren Buffett, boasts an iconic brand recognized globally. With a presence in millions of households across hundreds of countries, the company has evolved beyond its core soft drink offerings to include over 200 brands, spanning coffee, tea, and water. By creating no-sugar products and expanding through strategic acquisitions, Coca-Cola has demonstrated its ability to innovate and meet shifting customer demands. While growth may have slowed, the company remains a reliable investment, generating $10.4 billion in profit over the past four quarters with a 22% profit margin. As a Dividend King, Coca-Cola has increased its dividend payments for over 50 years, currently yielding 3%.
Eli Lilly: A Growth and Income Powerhouse
Eli Lilly is riding high on the success of its weight loss treatment tirzepatide, with analysts projecting annual revenue potential of over $50 billion. This pharmaceutical giant has been paying dividends since 1885 and has more than doubled its payout since 2019. Although the current yield may seem modest at 0.6%, the stock’s incredible growth prospects make it an attractive choice for investors seeking both income and capital appreciation.
Abbott Laboratories: Diversification and Growth
Abbott Laboratories offers investors a unique blend of diversification and growth opportunities. As a testing company, pharma business, and medical device maker, Abbott has demonstrated its ability to adapt to changing market conditions. Its nutritional products segment, led by the Ensure brand, provides a stable source of revenue. The company’s medical device segment is experiencing strong growth, driven by demand for its continuous glucose monitors. With a dividend payout ratio of 66%, Abbott is well-positioned to continue its dividend hikes, making it an attractive choice for income-focused investors.
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