In retirement you want some security. You want to have your money somewhere that you’ll know you’re going to get paid so that you can pay the bills. Dividend stocks is not a sure thing, but it’s one of the best ways to go about getting a set amount of money on a schedule.
How do you do it though? Well, you need to pick out dividend stocks that have a strong record of paying their shareholders. What is a strong record? What that means is that the stock has a record of paying their shareholders at regular payment intervals. It also means that they have been raising their dividend every year. How great is that? A stock that pays you on a schedule, and it gives you a raise each year. Sound familiar?
I’ve looked at a bunch of stocks that have done this. Some of them though have been doing it for a very long time. I’m talking more than 5 decades long time. For more than 50 years these stocks have been raising their dividends, and they’ve been paying their shareholders on a regular basis. That means when the stock market crashed in 2007 people holding these dividend stocks were still getting the same dividend payments with the same amounts. What’s more is that they raised their dividends even in the hard times.
Without further ado, here’s my favorite three Stock Dividend Kings
1- 3M (MMM)
This industrial conglomerate has a dividend yield at 2.4%. They make all sorts of stuff that you use all the time. They have tens of thousands of products that you can find at Lowes, Home Depot, Walmart, and Amazon. Products categories range from personal care, electrical, to construction. It’s more than likely that you have something in your house from 3M.
3M has been paying its shareholders for 100 years now. They’ve increased that dividend every year for the past 59 years. That’s some pretty solid numbers. This is a great place to park some of your money in retirement.
2- Johnson & Johnson (JNJ)
Johnson & Johnson is in many parts of the healthcare industry. They have a solid 2.6% yield. When is anyone not going to need healthcare?
Some could say that you don’t want to get into the healthcare sector right now because we don’t know what will happen with the Trump administration and their policies on healthcare. Although that’s a valid point, I would point out that Johnson & Johnson has raised its dividend for 54 years in a row now, and running.
3- Procter & Gamble (PG)
Here’s another company that you probably encounter every day. As one of the largest worldwide consumer products company, P&G has a lot going for it. When are you not going to need to clean your clothes? Shave? Get more diapers? That’s never going to happen, but you might change what product you use to do it. The powerful part about P&G is their strong brands. Tide, Pampers, and many more household names that people won’t substitute with anything else.
This is a consumer staples company, and people don’t stop buying some of this stuff just because of a bad economy. However, I’d take a look at their dividend history to really push me as a buyer. They have over 100 years of paying out a dividend to shareholders, and for over 60 years now they have been raising the dividends like clockwork.
These aren’t the only stocks that have a good track record with dividends, but they are some of my favorites because of the way the companies operate, and the power of their brands. Retired? Then you should have at least one of these in your portfolio.