WMT - There Are Over 50 Dividend Kings. Here Are My Top 3 to Buy and Hold for the Next 20 Years.
2024-07-17 06:30:00 ET
Owning stocks with high yields can be a great way to generate passive income. But yields can swing wildly based on a stock's price. A soaring stock's yield will fall and a tumbling stock's yield will rise, even as their payouts hold steady.
A much more useful approach for finding quality dividend stocks is to look at companies' track records of dividend increases and their ability to grow their payouts in the future. Dividend Kings are companies that have raised their dividends annually for at least 50 years. Today, there are just over 50 members of that exclusive club.
Some of my favorites are Walmart (NYSE: WMT) , Procter & Gamble (NYSE: PG) , and Illinois Tool Works (NYSE: ITW) . All three companies are well run and efficiently allocate capital. Here's why they have what it takes to continue making annual dividend increases, and why all would be worth buying and holding for the next 20 years.
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There Are Over 50 Dividend Kings. Here Are My Top 3 to Buy and Hold for the Next 20 Years.