TOP 7 dividend aristocrat stocks from different areas to buy and stash

Categories: Stocks | Published by: Tina Lebed
15/02/2023

Content:

  • Companies dividend aristocrats benefits and liabilities
  • Consolidated Edison Inc.
  • Leggett&Platt
  • JPMorgan Chase & Co
  • International Business Machines Corp 
  • Abbott  Laboratories 
  • Coca Cola Co 
  • Air Products and Chemicals 
  • Bottom Line

In times of market volatility and a possible impending recession, investors are looking for ways to invest safely.

The stability of a company and its ability to weather crises while staying afloat is most valued.

Dividend aristocrat stocks are one of the great options to keep and grow your profits.

Dividend aristocrats are the companies that an investor should choose if he or she wants to receive regular dividend payments over an unlimited period.

Further, dividend aristocrat companies are required to increase their distributions to investors regularly and pay out dividends at least once a year which will have a positive effect on your bottom line in the long run. 

A company that is able to pay a growing dividend for 25 years or more has a stable and powerful competitive advantage. 

A company must have a capitalization of at least $3 billion.

The company’s turnover must be at least $5 billion.

And all of the above conditions must have been met since 1997!

And there have been four crises since then.

The following 7 stocks of companies in different manufacturing sectors are recommended.

1. Consolidated Edison Inc. (ED)

Segment: Utilities 

The dividend yield is 3.5%

Consolidated Edison is not the largest company in the energy sector, but despite this, it is more consistent and because the company serves the New York metropolitan area it is fairly safe. 

The energy sector will always be in demand, just like necessities, which means that the risk of demand shortages is negligible.

On top of that, there is very little competition among energy companies in the US, as in most cases one energy company serves one region.

The company’s customer base has long exceeded 4.5 million.

The company has survived crises and has paid regular dividends for its investors for more than 50 years.

2. Leggett&Platt (LEG)

Segment:Consumer Discretionary

The dividend yield is -5.2 %.

The company develops and manufactures various engineering components, furniture and products that are used in homes and automobiles. Based in North America, it has been in business for 138 years with dividends paid since 28 February 1973.

The company has three lines of business: specialty products and furniture, bedding and textiles, and flooring.

Leggett & Platt is known for its adjustable beds, ready-made furniture, as well as components and various home solutions.

The company’s dividend has been growing regularly for 51 years and its value is rated very high. Leggett & Platt is rightly one of the highest yielding dividend kings.

3. JPMorgan Chase & Co. (JPM)

Segment: Financials 

The dividend yield is 5.2%.

JPMorgan is a leading global company among financial giants, founded 220 years ago. Its earnings are solid and its financial operations are scalable, so you can trust its financial peace of mind.

It was the first financial institution in the US to beat the pre-crisis dividend.

JPM Bank paid $1.52 a year in 2008, and $1.56 a share in 2014.

This financial giant has managed to withstand a wide range of crises and continues to be the biggest safe haven for investors.

4. International Business Machines Corp (IBM)

Segment: Technology

The dividend yield is 4.81%

One of the most promising companies on the list, with many years of developing a cloud business in IT.

International Business Machines Corp. – an information technology company. 

Main areas of activity: 

Software, including cloud solutions and cognitive systems 

Infrastructure

Business Consulting

Financing, including IBM software platform for business efficiency, credit financing.

IBM is one of the first big universal players on the market, in the USA it is called “The Blue Giant”. IBM aims to cover every aspect of the IT industry.

The company started back in 1911 in Armonk, United Kingdom. At the moment the company looks stable, with a major restructuring, there are high expectations for the development of the cloud segment. At the same time, there are risks that could lead to drawdowns in the medium term. These include the company’s high debt load.

However, it should not be forgotten that IBM has consistently raised its dividend for 25 years in a row.

5. Abbott Laboratories (ABT)

Segment: Healthcare 

The dividend yield is 1.88%

Pharmaceutical giant started manufacturing medicines back in 1888.

Main business lines:

Medical devices

Pharmaceutical 

Laboratory diagnostics

Medical nutrition

The company is distinguished from most competitors by its highly balanced revenues by business segment. The biopharmaceutical company’s stock maintains a buy recommendation from analysts, irrespective of geopolitical adverse developments.

Outlook: consumer focus is gradually shifting from pandemic drugs to familiar diseases, which covers a much larger number of consumers. 

The company announced the acquisition of Cardiovascular Systems Inc (CSI) on February 8, 2023, for $890 mln. CSI is developing innovations in the treatment of various cardiovascular diseases.

6. Coca Cola Co (Ko)

Segment: Consumer Staples

The dividend yield is 3%

This unsinkable giant seems to be the most stable company of all time. The company was founded more than 120 years ago, operates in 200 countries and has increased its dividend for more than 61 consecutive years.

The company produces the legendary Coca-Cola, Sprite, Fanta, Schweppes as well as Fuze Tea, Goldpeak teas, Vitaminwater, herbal milk AdeZ

Powerade sports drinks and Minute Maid Pulpy juices.

Compared to its competitors, Coca-Cola has an average performance among its main competitors, while the company is the best in terms of net profit margin and annual revenue growth.

In terms of dividend payments, the company has been paying and raising dividends without interruption for more than 25 years.

In the long term, Coca Cola is one of the most promising companies.

7. Air Products and Chemicals (APD)

Segment: Materials

The dividend yield is 2,44%

Air Products develops, builds, owns and operates some of the largest industrial gas projects in the world.

Air Products develops, builds, owns and operates some of the largest industrial gas projects in the world, including gasification that converts the earth’s resources into synthetic gas for power, fuel and chemicals.

The company is a niche market leader and a pioneer in the use and development of hydrogen fuelling infrastructure.

The company earns most of its revenue from gas sales to various industries.

The company’s dividend growth has been one of the strongest over the past 10 years, at 10.6% a year.

Bottom Line

At a time of geopolitical turbulence, buying the best of an industry that pays a steady dividend, continues to grow and has excellent long-term prospects seems like a very sound investment.