Dividend stocks that have weathered it all
Submitted to The Union
Dividend stocks pay you cash to hold them. Some stocks pay dividends and some do not but did you know that unlike interest on a savings account, dividends are not guaranteed?
Dividends are voted on by the board of directors of the companies whose stock you might own, and they can raise, cut or eliminate the dividend with a majority vote at any time.
In tough times, some companies cut or eliminate their dividends to save cash, but some companies are strong enough to pay or even increase their dividends through thick and thin.
Here’s a list of companies that have actually increased their dividends for an astounding 51 years. You will probably recognize some if not most of these super dividend paying companies: 3M, Coca-Cola, Colgate Palmolive, Dover Corp., Emerson Electric, Genuine Parts, Johnson and Johnson and Procter & Gamble.
Think about that for a minute: each of these companies has managed to not only continue to pay dividends but increase their payouts year in and year out through recessions, wars, the dot-com blow up and even the particularly nasty real estate bust and banking blowup of 2009.
The fact that such companies weathered all these economic crisis while giving investors larger and larger checks is impressive to say the least.
There are many more companies that have increased dividend payments consistently over the decades and finding them is as close as your favorite Web browser.
Although not a recommendation to buy any of these stocks, and past performance is no guarantee of future payments, one would have to respect the strength of such companies and their respective balance sheets that allow them to continually reward investors with bigger and bigger payouts through the toughest of times.
Although many stocks and funds pay dividends, many are forced to cut or eliminate their payouts during tough times as their balance sheets cannot sustain the continual outflow of cash that dividend payments require.
Other companies have such great products, services or market share that they gush cash to stockholders even in the leanest of times.
This article expresses the opinions of Marc Cuniberti. He hosts “Money Matters” on KVMR FM 89.5 and 105.1 FM at noon Thursdays and has been broadcast on more than 40 radio stations throughout the U.S. and Canada. He has been featured on NBC and ABC television and on a host of made for TV documentaries for his economic insights. His website is http://www.moneymanagementradio.com.
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