On this list, I’ll add companies that have increased their dividends for the past 23-24 years, which leaves them with 1-2 years left to join this elite group, the Aristocrats. Many of these stocks aren’t as widely followed, yet, but the consistency and resiliency of their businesses make them worth some attention.
Dividend Aristocrats
Companies who have increased their dividend payments each year for the last 25 years or more are called Dividend Aristocrats. In 2019, just 57 aristocrats were listed among the S&P 500.
This companies are usually very stable, which allows them to keep paying and increasing their dividends even during recessions.
Exemples of Dividend Aristocrats
- AT&T (T)
- PepsiCo (PEP)
- Altria (MO)
- Coca-Cola (KO)
- Abbvie (ABBV)
Some of this companies are on my top 5 Dividend Stocks to buy and Hold Forever.
Future Dividend Aristocrats:
Novartis (NVS)
23 Consecutive years of dividend hikes.
Novartis International AG is a Swiss multinational pharmaceutical company. It is one of the largest pharmaceutical companies by both market capitalization and sales.
Shareholders approved the 23rd consecutive dividend increase per share since the creation of Novartis in 1996, with an increase of 4% to CHF 2.95 for 2019.
Novartis has a market capitalization of $204.63 billion and generates $47.50 billion in revenue each year. The company earns $11.73 billion in net income (profit) each year or $5.24 on an earnings per share basis.
According to analysts, Novartis has a consensus price target of $100.04.
International Business Machines (IBM)
24 Consecutive years of dividend hikes.
IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most U.S. patents generated by a business (as of 2020) for 27 consecutive years.
The IBM board of directors declared a regular quarterly cash dividend of $1.62 per common share, payable June 10, 2019 to stockholders of record as of May 10, 2019. This declaration represented an increase of $0.05 per common share and it was the 24th year in a row that IBM has increased its quarterly cash dividend.
IBM pays out 50.59% of its earnings out as a dividend, leaving enough room for growth.
According to analysts, IBM has a consensus price target of $136.14.
IBM also has a Stock Buyback Program, which allows it to repurchase $4,000,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization allows the company to buy up to 3.5% of its shares through open market purchases.
Expeditors International (EXPD)
24 Consecutive years of dividend hikes.
Expeditors is focused on the increasingly sophisticated needs of international trade through customized solutions and seamless, integrated information Systems. During the past 5 years, the average Dividends Per Share Growth Rate was 11.90% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 10.20% per year.
Expeditors International of Washington’s stock was trading at $67.36 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization (WHO). Since then, EXPD shares have increased by 6.5% and is now trading at $71.74.
Expeditors International of Washington has a market capitalization of $12.05 billion and generates $8.18 billion in revenue each year. The transportation company earns $590.40 million in net income (profit) each year or $3.45 on an earnings per share basis.
Expeditors International of Washington pays out 28.99% of its earnings out as a dividend.
Some of my favourite Dividend Stocks
My Portfolio
My Watchlist (APRIL 2020)
Happy Investing! 🙂