3 Dividend Aristocrats to Buy and Hold Forever
24 Gennaio 2022 - 11:46AM
Finscreener.org
Dividend aristocrats are stocks
that have been increasing their dividend payout every year for at
least 25 years. It is no easy feat to be classified as one. These
are stocks ideal for passive streams of income. The
dividend-paying companies have weathered tough economic cycles, and their
business models have stood the test of time (so
far).
These entities generally enjoy a
wide economic moat, making them top bets for the long-term
investor. Below are three Dividend Aristocrats that should be on
the top of your shopping list for 2022.
Clorox
This company is most known for
its cleaning products: bleach, disinfectant swipes, multiple types
of cleaning sprays etc. Its portfolio of products helped Clorox’s
share price to zoom in 2020 before tempering since
then.
However,
Clorox (NYSE:
CLX) is more than just a
cleaning company. It has food products (Hidden Valley), minerals
and supplements (RenewLife, Natural Vitality,etc), cat litter
(Fresh Step, Scoop Away, etc), bags and wraps (Glad), grilling
products (Kingsford), personal care (Burt’s Bees), and a whole lot
of other segments.
People don’t realize it but they
use Clorox products in almost every aspect of their lives. This
company isn’t going anywhere. It has recorded 45 years of dividend
growth, and its current yield stands at 2.54%. The company’s
results have beaten expectations in three out of the last four
quarters.
Clorox launched the IGNITE
initiative in 2019 to harness new trends in the world, one of which
is sustainability. Its lad range of trash bags are made from 50%
recycled plastic. Clorox is a brand that consumers trust and this
will hold the company in good stead.
IBM
International Business Machines
Corporation (NYSE:
IBM) is one of the well-known names around the
world. It is the newest entrant into the dividend aristocrats list
in 2021 after completing 25 years of continuous dividend increases.
Its current yield is a very healthy 4.87%. IBM sells hardware,
middleware and software. It also provides IT consulting services,
cloud, and enterprise systems and software.
It has a presence in over 175
countries and its customers include small businesses as well as
conglomerates. IBM’s cloud and cognitive software business is fast
becoming one of its biggest revenue drives and is already its
largest profit center.
Its global business services
segment, that includes its consulting arm, saw its Q3 2021 revenues
go up 17% year-on-year. It has said that in 2022 it expects cash
flow to grow in the high-single digits through 2024 and will grow
to a cumulative $35 billion.
This might be a good time to
enter IBM stock. It has spent the last six months consolidating
between $115-$135 levels, and it looks ripe for a breakout
now.
NextEra Energy
NextEra Energy (NYSE:
NEE) is another stock
that entered the dividend aristocrat list recently. The company
consistently pops on ‘Energy stocks to buy and hold for the next
decade’ kind of articles. And for good reason too.
The company is the largest
utility player in the US and is known for its clean energy push. It
is the largest generator of solar and wind energy in the world. It
is consistently placed in the top percentile when it comes to ESG
lists.
The last five years have seen the
stock deliver over 154% returns to its shareholders. The company’s
services are evergreen, and it is very unlikely that it will
massive negative impact in the future. This is one stock investors
tend to rely on during volatile markets.
NEE stock closed January 14 at
$83.2 and analysts have a target of $95.3 on the stock which
indicates a potential upside of over 14.5%. Its current yield is
1.85% which makes this stock a good buy.
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