The Century Club: 3 Companies That Have Paid Dividends For More Than 100 Years

Individuals who’re curious about dividend investing benefit from the thought of sharing in an organization’s earnings. As an fairness shareholder of an organization that pays dividends, a part of their earnings shall be disbursed within the type of a dividend. Two of the most typical causes buyers elect so as to add dividend-paying corporations to their portfolio are to both generate passive revenue or assist rebuild their revenue in retirement. There are many various theories on investing, and there definitely is not a one-size-fits-all that everybody ought to observe. My funding technique is a hybrid method. I’ve 100% of my retirement contributions going into an S&P 500 index fund. Outside of retirement, I’ve 4 baskets of investments I contribute to, which embody funds, dividend-producing shares, massive tech, and progress corporations. To give some examples, I contemplate corporations reminiscent of Apple, Amazon, and Facebook a part of massive tech whereas others like Cloudflare and Palantir could be progress corporations although they fall within the data know-how sector. Companies reminiscent of Omega Healthcare Investors, AT&T, and Coca-Cola would fall in my dividend firm bucket. Note: Interested in getting periodic e-mail notifications when articles are printed right here? Drop your e-mail within the field under!My nephew turned 5 final month, and now we have been investing on his behalf so he can begin life in a fantastic place when he turns into an grownup. We have been mimicking my private method and have invested in some S&P progress funds, massive tech corporations, progress corporations & funds, and a few dividend shares. One of the issues I’ve thought of is producing a lifetime of dividends for myself and my nephew. I need to spend money on corporations with an extended observe document of paying dividends, annual dividend will increase, and powerful potential to duplicate the method into the long run. With my nephew being 5 years previous, the problem is deciding on corporations that may stand the take a look at of time and supply a lifetime of dividends for him. My standards contains discovering corporations which have paid dividends for at the least 100 years, have at the least 25 years of consecutive dividend will increase, a low sufficient payout ratio to proceed their dividend will increase, and that I imagine will have the ability to pay dividends constantly over the following century. These necessities take nearly each firm out of the equation apart from essentially the most reliable dividend payers somebody may spend money on. Three of the dividend corporations I shall be investing in for my nephew are the Coca-Cola Company (KO), Consolidated Edison (ED) and Procter & Gamble (PG). I’ve the utmost confidence that these three corporations will proceed to pay dividends all through my lifetime and past. Dividends For A Lifetime Company #1: The Coca-Cola Company (KO)Funny sufficient, I simply had an ice-cold Coke from a glass bottle with my lunch, and it was scrumptious. I’m satisfied that the Coca-Cola emblem is essentially the most acknowledged firm image globally. The Coca-Cola Company has been in enterprise for 135 years, and its merchandise are bought in additional than 200 nations and territories globally. No matter the place you journey, there’s a excessive chance you could find a pleasant refreshing Coca-Cola. From an operational standpoint, through the pandemic, The Coca-Cola firm bought 1.9 billion servings every day all through its international community. The Coca-Cola Company has operated all through each international occasion prior to now century and hasn’t missed a step. I’m prepared to wager that within the yr 2100, historical past will repeat itself, and billions of individuals shall be having fun with their merchandise. (Source: The Coca-Cola Company)I imagine it will be onerous to seek out somebody who disagrees that The Coca-Cola Company should not be chosen when constructing a portfolio that can pay dividends for a lifetime. Coke’s dividend is one among a sort as it has been paid to shareholders since 1920. Today 51 corporations have elevated their dividend for 50 consecutive years and are thought-about Dividend Kings. Coke checks off all of my bins. This is an organization that has stood the take a look at of time, paid a dividend for over 100 years, and has elevated its dividend for 59 consecutive years. Today Coke trades for $57.05 per share and pays a dividend of $1.68 which is a ahead yield of two.95%. Coke has a very good payout ratio of 74.69% with a 5-year common progress fee of 4.07%. In 2020 Coke generated an 8.9% return on belongings, 40.5% return on fairness, and generated $2 in free money move per share. (Source: Seeking Alpha)Dividends For A Lifetime Company #2: Consolidated Edison (ED)Consolidated Edison’s roots date again to the economic revolution. Originally Con-Ed supplied pure fuel to buildings almost 100 years earlier than the everyday American family had electrical energy. I really like utility shares as a result of they’ve built-in demand, are geographic monopolies, and everybody wants their product. The boundaries of entry are a number of the hardest you’ll find all through any enterprise. Think about what would happen if a blackout occurred? Is there one other sort of firm that’s as important to our lifestyle as utility corporations? Everyone pays their electrical and fuel payments, not simply because it is the correct factor to do however as a result of they’re absolute necessities. Con-Ed offers electrical energy to roughly 3.3 million clients and fuel to round 1.1 million clients in New (*100*) City and Westchester County. With the most important metropolis on the earth inside Con-Ed’s territory, there shall be no scarcity of shoppers, and the power demand will proceed to maintain the month-to-month checks flowing into Con-Ed’s coffers. Dividend buyers may take consolation as a result of Con-Ed has a built-in annual fee improve that can assist assist its future dividend will increase. (Source: Consolidated Edison)Con-Ed has paid a dividend since 1885 and has supplied shareholders with dividend will increase for the previous 47 years. Today Con-Ed trades at $74.52 per share and pays an annual dividend of $3.10 for a ahead yield of 4.16%. Con-Ed has a payout ratio of 72.76% and a 5-year progress fee of 3.13% for its dividend. Con-Ed may very well be the most secure high-yielding dividend available in the market as its paid a dividend for greater than 125 years. You might not discover a larger high quality 4% yielding firm available in the market. Con-Ed is three years away from being topped a Dividend King, and with a payout ratio of 72.76%, Con-Ed has sufficient firepower to maintain the dividend will increase coming. (Source: Seeking Alpha)Dividends For A Lifetime Company #3: Procter & Gamble (PG)Tide, Bounty, Charmin, Gain, Puffs, Gillette, Old Spice, Cascade, Dawn, Mr. Clean, Crest, Oral-B, Vicks, Pepto Bismol, Pampers, Luvs, I’m prepared to wager that you’d discover a product from one among these manufacturers in your house. If you stroll by way of your native grocery store, Target, Walmart, or Costco take into consideration how a lot retail area is taken up by these manufacturers. The one factor these manufacturers have in widespread is that they’re a part of Procter & Gamble’s (PG) product traces. Procter & Gamble is without doubt one of the largest client items corporations in America. Their portfolio contains merchandise in child care, cloth care, household care, female care, grooming, hair care, dwelling care, oral care, private well being care, and pores and skin & private care. (Source: Procter & Gamble)Procter & Gamble is answerable for producing most of the on a regular basis merchandise that people use each day. Many corporations do not final 50 years, not to mention 100 years. Procter & Gamble broke the mould as their enterprise operations have been in existence for over 180 years. One of the issues I really like about Procter & Gamble’s enterprise is the lifespan of buyer acquisitions. If you utilize Tide in your laundry, take into consideration what number of years you have got been buying Tide, the identical thought may very well be requested about Crest, Dawn, Cascade, and plenty of different merchandise. Procter & Gamble’s merchandise are precise requirements, and plenty of of their manufacturers could be bought all through a person’s lifetime. Proctor & Gamble has constructed a enterprise that creates merchandise which can be important all through somebody’s whole life, so it is solely becoming that they’re a element to generate dividends all through a lifetime. For the previous 131 years, P&G has reward shareholders by way of annual dividends. P&G isn’t solely a part of the Century Club, however they’re one of many outstanding corporations which have earned the standing of being a Dividend King, having supplied 65 consecutive annual dividend will increase up to now. Today P&G pays an annual dividend of $3.48 which is a ahead yield of two.41%. P&G has a payout ratio of 61.88% with a 5-year progress fee of 4.5% for its dividend. (Source: Proctor & Gamble)Generating Dividends Throughout A LifetimeWhen enthusiastic about which corporations can proceed to pay dividends nicely into the long run, it’s good to take into consideration what’s going to nonetheless be related and will not get displaced by way of evolution. Nobody has a crystal ball, however the possibilities of seeing the services and products from PG, ED, and KO displaced is low, in my view. I really feel comfy that these corporations will nonetheless be dominant forces in society for the following 100 years, the identical means they have been over the previous century. This is why I’m placing them in my nephew’s portfolio as a result of I imagine they are going to generate passive revenue all through his lifetime.The mixture of PG, ED, and KO has 368 years of dividend funds and 171 years of consecutive annual dividend will increase beneath their belt. Purchasing one share of every firm would value $275.98 and generate $8.26 in annual dividends for a yield of 3.17%. These might not be the highest-yielding corporations dividend buyers may hunt down, however they’re definitely of the very best high quality. If your searching for corporations that may stand the take a look at of time and generate dividends for a lifetime, these century membership members needs to be on the prime of the listing.Note: Interested in getting periodic e-mail notifications when articles are printed right here? Drop your e-mail within the field under!Also learn:7 Dividend Growth Stocks For August 2021Why Texas Instruments Dropped 5% On Earnings Day5 Next In Line Dividend AristocratsThe Only Dividend Radar Stocks With Perfect Quality ScoresThe Breakeven Fairy Tale (When To Sell Your Losers)7 Best Financials Sector Dividend Stocks5 Building Block Stocks For A (*3*) Income Producing Portfolio4 Dividend Champions With 5% Yields

Recommended For You