As dozens of companies suspend dividend payments to preserve cash, investors are seeking consistent dividend paying stocks to maintain their quarterly dividend cashflow.
Where should dividend investors find the most consistent dividend paying stocks?
Look no further than the S&P 500 dividend aristrocrats index. These 64 companies have raised their dividends for at least 25 years and continue to return capital to shareholders in these turbulent times.
I've gone through the list and shared the 10 best dividend aristocrat stocks to buy right now based on their debt load, increased dividend payments, low payout ratio, and durable revenue/earnings growth.
In times like these, I'm leaning towards companies that sell essential items (food, toilet paper, toothpaste) over companies with expensive non-distretonary products.
|Company||Annual Dividend||Dividend Yield||Market Cap|
|Johnson & Johnson (JNJ)||$4.04||2.73%||$390 billion|
|Proctor & Gamble (PG)||$3.16||2.80%||$280 billion|
|Abbott Labratories (ABT)||$1.44||1.58%||$161 billion|
|Coca Cola (KO)||$1.64||3.66%||$192 billion|
|Kimberly Clark (KMB)||$4.28||3.18%||$45 billion|
Johnson & Johnson (JNJ)
Medical supplies and health care needs don't stop but become more critical during a health crisis. The company trades at a respectable 23 P/E ratio with a reasonable 2.7% dividend yield. In April, JNJ's board of directors announced a 6% dividend increase marking 58 straight years of quarterly dividend increases.
Proctor & Gamble (PG)
PG sells essential items like toilet paper, diapers, and other household products that consumers need during a crisis situation. The company increased its dividend by 6% in April and has boosted dividend payments for 64 straight years. Not to mention PG has paid a dividend to shareholders for 130 consecutive years.
Abbott Laboratories (ABT)
The company received multiple approvals for a COVID-19 test and has done a stellar job of returning value to shreholders via dividends. Abbott increased their quarterly dividend in December 2019 and has increased its dividend for 48 consecutive years.