Key Takeaways
- Dividends provide a passive income stream, giving another way to profit from stocks beyond buy low, sell high.
- Dividend Aristocrats are stocks that have increased dividend payments every year for at least 25 years.
- Walmart, Kimberly Clark and Altria shares are stocks that provide reliable dividend payments to stockholders.
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats.
Walmart WMT, Kimberly Clark KMB, and Altria MO fit the criteria. Let’s take a closer look at each.
Walmart Shares Soar
Walmart shares have been red-hot over the last year, gaining 70% on the back of strong quarterly results and widely outperforming. The earnings outlook for its current fiscal year has remained bullish, with the $2.47 per share consensus estimate suggesting 12% growth year-over-year.
Image Source: Zacks Investment Research
The strong share performance over the past year has suppressed the annual dividend yield, but the company’s 3% five-year annualized dividend growth rate shows a commitment to increasingly rewarding shareholders. The stock overall has delivered an excellent blend of growth paired with a shareholder-friendly nature over the past year.
Below is a chart illustrating the company’s dividends paid on a quarterly basis. Please note that the final value is tracked on a trailing twelve-month basis.
Image Source: Zacks Investment Research
KMB Shares Reflect Defense
KMB shares have been a bit sluggish over the past year, gaining 6% but underperforming relative to the S&P 500 by a wide margin. Still, the stocks’ defensive nature can’t be overlooked, with consistently higher dividend payouts also a nice benefit.
The company carries a defensive nature thanks to its placement in the consumer staples sector, as these companies’ products have an advantageous ability to generate consistent demand in the face of many economic situations.
KMB’s grown its dividend by an annualized 2.9% over the last years, with a current payout ratio of 67% also not overly concerning. Shares are currently yielding a solid 3.9% annually, more than triple that of the S&P 500.
Image Source: Zacks Investment Research
Altria Pays Investors Big
Altria has long been a favorite among income-focused investors thanks to its shareholder-friendly nature, with the stock also currently sporting a favorable Zacks Rank #2 (Buy). The earnings outlook for its current fiscal year has remained constructive, with the $5.12 per share expected suggesting 4% year-over-year growth.
Image Source: Zacks Investment Research
It’s a high-yield stock, with shares currently yielding a sizable 8% annually. Dividend growth is there, with the company sporting a 4.3% five-year annualized dividend growth rate. As shown below, the current yield crushes that of the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.
And for those seeking companies with a consistent history of steady payouts, all three above – Altria MO, Kimberly Clark KMB, and Walmart WMT – fit the criteria.
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Walmart Inc. (WMT) : Free Stock Analysis Report
Altria Group, Inc. (MO) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report