Nordson (NDSN): A Premier Dividend King Dispensing Higher Dividends for 53 Straight Years
Nordson (NDSN) has the 14th longest dividend growth streak among U.S. public companies with 53 consecutive years of increases, but many investors have never heard of this member of the dividend kings list here. However, Nordson is certainly a business that's worth getting to know. The company has sticky customer relationships, a large base of recurring revenue, extremely diversified end markets, low payout ratios, and excellent dividend growth prospects. While Nordon's dividend yield is far too low to consider the company for our list of the best high dividend stocks here, it is the type of business that can deliver exception long-term total returns for shareholders. Let's take a closer look at this dividend champion. Business Overview [...]
C.H. Robinson (CHRW) Drops on Earnings Report: What Dividend Investors Need to Know
C.H. Robinson (CHRW) reported second-quarter earnings results after the market closed yesterday. The company announced that diluted earnings per share came in at 78 cents, which was well short of the 90 cents that analysts were expecting. As a result, CHRW's stock price dropped more than 9% in after-hours trading before recovering for a more modest 5% decline today. Let's review the business and take a closer look at the company's latest earnings report to see if the price weakness seems justified or if it could be an overreaction. How Does C.H. Robinson Make Money? C.H. Robinson is one of the largest third-party logistics companies in the world and has been in business for more than [...]
Aflac (AFL): A Cheap Dividend Aristocrat or Value Trap?
Over the past decades boring old insurance specialist Aflac (AFL) has done a remarkable job of enriching long-term income growth investors thanks to its impressive 34-year dividend growth streak. That's courtesy of its strong, cash-rich business model, which has allowed it to grow its dividend by 14.6% annually over the past quarter century, resulting in annual total returns that easily beat the S&P 500's. Of course past performance is no guarantee of future results, and recently Aflac has struggled to generate the kind of sales, earnings, cash flow, and dividend growth that investors have come to expect from it. However, many insurance companies can make for great investments. Warren Buffett would agree given his ownership of GEICO and some of [...]
Medtronic (MDT): A Dividend Aristocrat With Double-Digit Payout Growth Potential
Medtronic (MDT) is one of the largest medical device makers in the world and, with 39 consecutive years of dividend growth, one of the venerable dividend aristocrats here. Even more impressive? Over the last 39 years, Medtronic has rewarded income investors with 18% annual dividend growth, making it not only highly reliable, but also one of the fastest payout growers on Wall Street. Let's take a look at what makes this medical blue chip stock so special and see if it's likely to continue increasing its dividends at a double-digit clip over the coming years. While Medtronic may not sport the yields offered by some of the best high dividend stocks here, it may represent one of the few [...]
Ecolab (ECL): A High Quality Dividend Aristocrat Held by Bill Gates
Ecolab (ECL) is arguably one of the most reliable businesses that money can buy, which is perhaps why the company is a large holding in Bill Gates' dividend portfolio here. Although Ecolab's dividend yield is low (1.1%), the company’s long-term growth outlook is excellent and supported by its impressive moat (90% recurring revenue in the form of essential consumables; entrenched customer relationships; twice as large as its next biggest competitor; more than 25,000 customer-facing employees). Dividend growth investors will also appreciate the fact that Ecolab is a member of the dividend aristocrats list here, highlighting the durability of its business and its shareholder-friendly culture. Let's take a closer look at this impressive dividend grower to see if [...]
Illinois Tool Works (ITW): A Dividend King With Double-Digit Total Return Potential
Illinois Tool Works (ITW) is one of the strongest, most diversified companies that a dividend growth investor can find in the industrial sector. While the stock only yields close to 2% today, the company has consistently raised its dividend at a double-digit pace for many years. In fact, Illinois Tool Works has been growing its annual payout every year since 1964 and is a member of the dividend kings group here. Let's take a closer look at the business to see if it could be a good fit today for a diversified dividend growth portfolio. Investors seeking higher income can review some of the best high dividend stocks here. Business Overview Founded in 1912, in Glenview, [...]
Lancaster Colony (LANC): A Small Cap Dividend King Worth Reviewing
Despite growing its dividend every year since 1963, Lancaster Colony (LANC) is a relatively unknown company with most income investors. Lancaster Colony is one of the dividend kings here thanks to its 50+ consecutive years of payout growth, but it is unlike many of the other kings, which are generally large and relatively slow-growing companies. Let's take a closer look at one of the rare small cap dividend kings, Lancaster Colony, which just raised its dividend for the 54th straight year, a feat matched by just 14 other U.S. corporations. Specifically, learn why this specialty food maker deserves to be on your radar and if its valuation is attractive for investors who are building a dividend portfolio the responsible way. [...]
Colgate-Palmolive (CL): A Dividend King That Hasn’t Missed a Payment in 122 Years
While dividend growth investing is arguably one of the best ways for people to build long-term income and wealth over time, that doesn't necessarily mean that selecting quality companies is easy. After all, the key to long-term success involves finding companies with strong management teams, consistent and growing cash flows, safe debt levels, and dividend-friendly corporate cultures. That's why a popular strategy for low risk investors is to screen for quality by looking to dividend kings, which are companies that have proven themselves capable of growing in all types of economic, political, and interest rate environments, all while rewarding dividend investors with steady payout growth. Let's take a look at Colgate-Palmolive (CL), which with 54 straight years of increasing [...]
Thomson Reuters (TRI): Paying Higher Dividends for 24 Consecutive Years
Thomson Reuters (TRI) has raised its dividend for 24 straight years and is arguably one of the safest sources of income in the market for investors living on dividends in retirement. The company’s business benefits from selling mission-critical solutions and generates significant amounts of recurring revenue (86% of sales), which results in very predictable cash flow and a high Dividend Safety Score. Thomson Reuters has also been improving its earnings profile through various transformational strategies and expects its adjusted EPS to grow at a double-digit rate this year. Let's take a closer look at this reliable dividend growth stock to see if its future remains bright and if its valuation is reasonable today. Business Overview Thomson Reuters [...]
Archer Daniels Midland (ADM): A Dividend Aristocrat Trading at Some of the Best Valuations in 20 Years
Historically, dividend growth investing has been one of the best ways for regular people to compound their wealth and income over time. Of course, the trick is to be able to carefully select the best quality companies, those with high-quality management teams, strong balance sheets, predictable businesses, and dividend-friendly corporate cultures. That's why dividend aristocrats have become a favorite among income investors, because with their long-term (25+ years) streaks of annual dividend growth, aristocrats can be a great starting place to look for the kind of steady blue chips that have done so well in the past. Investors can learn more about all of the dividend aristocrats here. Let's take a look at Archer Daniels Midland (ADM), one of [...]