ETN Eaton Corp New

Dividends have been in the news recently with Apple deciding to finally use some of its cash to reward shareholders with a dividend.

But some companies have to be asking: "what took you so long, Apple?"

There are a select group of S&P 500 companies that have been paying dividends consistently for decades. For some, it has been even longer. Some companies have been paying a dividend for over 100 years.

Think about what that means.

Some American companies have been rewarding shareholders through World War I, the Great Depression, World War II, the Korean War, the birth of rock-n-roll, the Kennedy assassinations, the Vietnam War, Woodstock, Watergate, the Gulf War, the dot-com boom and right into the new millennium.

The Dividend Superstar

Some companies have NEVER stopped paying them. No matter what happens.

Others have also not only paid them consistently, but have also raised those dividends year after year, for decades.

These companies are the "Dividend Superstars."

While the only guarantees in life may be death and taxes, the dividend on these companies comes pretty close.

But what if you could invest in a Dividend Superstar which also is a Zacks #1 Rank (Strong Buy)? That is a powerful combination for those looking for income and growth.

3 Dividend Superstars Which Are Zacks #1 Rank (Strong Buy) Stocks

Even though it's rare, Dividend Superstars which are also Zacks #1 Rank (Strong Buy) DO exist.

The following companies, all which also are expected to have double digit earnings growth in 2012, met both criteria.

1. PPG Industries
2. Eaton Corporation
3. Sherwin-Williams

1. PPG Industries (PPG) just surprised on the Zacks Consensus Estimate for the first quarter by 5.2%. The company manufactures paints and coatings as well as specialty chemicals.

• Founded in 1883
• Has paid a dividend since 1899
• Dividend yield = 2.3%

2012 expected earnings growth = 13.6%

20 Year Chart:

2. Eaton Corporation (ETN) manufactures products used in power distribution and in power control, such as hydraulic systems.

• Founded in 1911
• Has paid a dividend since 1923
• Dividend yield = 3.2%

2012 expected earnings growth = 12%

20 Year Chart:

3. The Sherwin-Williams Company (SHW) makes paints and coatings. It recently announced record first quarter sales and earnings. Paint Stores Group sales rose 20.9%.

• Founded in 1866 (one year after the Civil War)
• First dividend paid in 1885
• Has increased its dividend every year since 1979
• Dividend yield = 1.3%

2012 expected earnings growth = 22%

20 Year Chart:

Some Companies Get Better With Age

After more than a hundred years in business, each of these companies is still thriving and still dominating its markets. Sherwin-Williams, for instance, became an international company all the way back in 1895 when it opened its first non-US plant in Montreal. But it hasn't rested on its laurels. It now distributes products in 109 countries.

But investors aren't just getting history with these companies. Each company is a Zacks #1 Rank (Strong Buy) with expected double digit earnings growth in 2012.

Sometimes "new" isn't always "the best." Don't overlook companies simply because they've been around awhile. These Dividend Superstars are a perfect example that companies can get better with age.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

 
EATON CORP (ETN): Free Stock Analysis Report
 
PPG INDS INC (PPG): Free Stock Analysis Report
 
SHERWIN WILLIAM (SHW): Free Stock Analysis Report
 
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