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. Coca-Cola KO, Caterpillar CAT, and McDonald’s MCD all belong to the elite group. Let’s take a closer look at each.
Coca-Cola
KO is a a member of not only the elite Dividend Aristocrats group, but the Dividend Kings group as well, further underpinning its dividend reliability. As shown below, the company has rewarded its shareholders handsomely for years.
Shares currently yield a solid 2.8% annually, with the company sporting a 4.8% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Caterpillar
Caterpillar is the world’s largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.
CAT shares currently yield 1.0% annually, undoubtedly on the lower side of things. But while the current yield may be on the lower end, Caterpillar’s 8.2% five-year annualized dividend growth rate picks up the slack.
Below is a chart illustrating the company’s dividends paid on an annual basis.
Image Source: Zacks Investment Research
McDonald’s
We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop. MCD shares presently yield 2.3% annually, paired with an 8.2% five-year annualized dividend growth rate.
Below is a chart illustrating the company’s dividends paid on an annual basis.
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 – Coca-Cola KO, Caterpillar CAT, and McDonald’s MCD – fit the criteria.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
McDonald’s Corporation (MCD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).