2023-11-27 10:15:00 ET
Invest long enough and you'll experience the stock market's ups and downs. For long-term investors, finding quality companies you can invest in through the good and bad times is important to building wealth. For dividend investors, that's especially so. A great business can pay dividends during tough times and keep raising them.
Industrial conglomerate Illinois Tool Works (NYSE: ITW) is a great example. The company has raised its dividend for 60 consecutive years, spanning the last eight recessions ! Here is the stock's secret to dividend longevity and why investors can continue banking on future raises.
Industrial companies like Illinois Tool Works rely on the broader economy. If a recession occurs and building and manufacturing slow, industrials will likely see slower growth or even lose revenue. You can see below that Illinois Tool Works has seen the occasional bump; revenue declined during recessions in 2001, 2009, and 2020.
For further details see:
Want Safe Income? This Stock Raised Its Dividend in the Last 8 Recessions