Jon C. Ogg
It's no secret that investors love dividends. It is also no secret that dividends make a sizable contribution to investors' total returns over time.
What they really love is when companies have stable business models that can last through good times and bad times and that allow them to keep raising those dividends year after year. With the end of the last bear market now 10 years ago, and with markets having risen exponentially from the March 2009 bottom, investors need to consider how they want their assets positioned for the years ahead.
There is a group of companies named the Dividend Aristocrats. Its name implies that they are more than special, and that's because to be in that group a company has to have raised its dividend for at least 25 consecutive years. There is an even more impressive group of companies that would qualify as an aristocrat – some companies have raised their dividends for 50 or more consecutive years.
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It's important to consider what a 50-plus year streak of dividend hikes really means in a big-picture view. Not only have these companies been able to raise dividends during the Great Recession and six recessions prior to that, but they have endured dividend hikes through more than 12 presidential election cycles, endured multiple changes of the balance of powers in Congress and endured many changes in the tax code. This also means they have endured hyper-inflation, threats of deflation, oil shocks, countless armed conflicts and acts of terrorism, an exit from the gold standard, inverted yield curves and so on.
24/7 Wall St. has screened companies with solid dividend and earnings histories, looked at the businesses and made sure that the hikes were confirmed as the annual streak by the companies themselves. We have first shown the number of years and the hike, and we also have shown when the most recent dividend hike was announced, as well as some additional color on each company's business.
Here are 10 solid companies that have raised dividends for their investors for at least 50 consecutive years.
California Water Service
• Number of years: 52
• Yield: 1.5 percent
California Water Service Group (NYSE: CWT) has now raised its dividend for 52 consecutive years. It may have California and west coast regulatory risks in its locations, but waterby and large is considered to be recession-proof. This group of utility companies provides regulated and nonregulated water service to nearly 2 million people throughout California, Washington, New Mexico and Hawaii.
Coca-Cola
• Number of years: 57
• Yield: 3.5 percent
Coca-Cola Co. (NYSE: KO) has paid dividends for more years than most investors can count, as its launch pre-dates 1900. Coca-Cola has been gradually changing its business to not be dependent just on soda and sugar-water sales, and it can claim to have Warren Buffett's Berkshire Hathaway as its largest shareholder. The beverage giant last hiked its dividend on February 21, 2019, and the company said that was 57th consecutive annual dividend hike.
Dover
• Number of years: 63
• Yield: 2.1 percent
Dover Corp. (NYSE: DOV) spans multiple industries for equipment and components, pumps, conveyors and other items used by manufacturers and goods-producing companies. Its dividend hike in August 2018 marked the 63rd consecutive year of dividend hikes since its founding in 1947.
Emerson Electric
• Number of years: 62
• Yield: 2.8 percent
Emerson Electric Co. (NYSE: EMR) offers technology and engineering solutions to industrial, commercial and consumer markets. While it has had exposure to oil and gas, the company is poised for earnings growth, and its dividend hike in November of 2018 marked the 62nd straight year of dividend hikes.
Genuine Parts
• Number of years: 63
• Yield: 2.8 percent
Genuine Parts Co. (NYSE: GPC) is known for its Napa brand for auto parts, and it also has UAP in Canada and AutoTodo in Mexico. It also recently acquired Alliance Automotive Group for about $2 billion to become one of the larger distribution companies in Europe. The dividend hike announcement on February 19, 2019, marked the 63rd consecutive year of dividend hikes for Genuine parts.
Hormel
• Number of years: 53
• Yield: 2.0 percent
Hormel Foods Corp. (NYSE: HRL) is a leader in prepacked food. On top of offering Spam, the company has been getting into more natural products in addition to the canned and packaged foods that it is best known for. Hormel last raised its dividend in November 2018, and that marked the 53rd consecutive year of dividend hikes.
Johnson & Johnson
• Number of years: 56
• Yield: 2.6 percent
Johnson & Johnson (NYSE: JNJ) is one of the largest companies in the world and leads in consumer products and in the field of health and medical products. Its recent asbestos and talc issue has been a concern, but over time the company has proven that it can survive and overcome challenges. Johnson & Johnson has about 130 years of operating history, and its dividend hike in April 2018 marked the 56th consecutive year of dividend hikes.
3M
• Number of years: 61
• Yield: 2.7 percent
3M Co. (NYSE: MMM) may have run into some growth and demand issues along with other conglomerates of late, but the company has a very long operating history that goes way back before its Post-It notes. It dates back to 1902. The conglomerate last raised its dividend in February 2019, and that marked the 61st consecutive year of dividend hikes. 3M has also paid dividends for more than 100 years.
Procter & Gamble
• Number of years: 62
• Yield: 2.8 percent
Procter & Gamble Co. (NYSE: PG) is the largest consumer products company of them all. It has paid dividends for more than 100 years, since its founding back in 1837. While the company has run into competitive pressure and international issues in recent years, the company has brands such as Luvs, Pampers, Always, Tampax, Bounty, Charmin, Tide, Downy, Cascade, Swiffer, Crest, Vicks and so on that have to purchased come hell or high water. Its April 2018 dividend hike made the streak rise to 62 straight years.
Stanley Black & Decker
• Number of years: 51
• Yield: 2.0 percent
Stanley Black & Decker Inc. (NYSE: SWK) may be best known for its hand tools and power tools for construction sites and for homes, but the company also offers electronic security solutions, health care solutions and engineered fastening systems. When it hiked the dividend in July 2018, that marked its 51st consecutive year of such hikes. While Stanley Works became Stanley Black & Decker after a merger in 2010, the company originally dates back to the first half of the 1800s.
24/7 Wall Street is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.
