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The Dividend Aristocrats are among the best stocks for long-term income investors. Dividend Aristocrats have excellent business models that have produced annual dividend increases, even during recessions.The following 3 dividend stocks have increased their payouts for over 25 consecutive years, placing them on the exclusive Dividend Aristocrats list. They also have high expected total returns over the next five years.
3M Company (MMM)
3M is a global industrial manufacturer with more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000 employees and serves customers in more than 200 countries. Revenue decreased by 3.8% to $8.6 billion and was $100 million less than analyst expectations. Adjusted earnings-per-share of $2.69 compared to $2.45 in the prior year and beat estimates by $0.10.Organic growth for the quarter was 2% as a stronger U.S. dollar offset growth. Safety & Industrial had 1.7% organic growth as this segment continues to see gains in industrial adhesives and tapes, abrasives, and masking systems, though personal safety once again was lower year-over-year.Transportation & Electronics improved 3.0% as automotive OEM, commercial solutions, and advanced material were higher. These gains were offset by weakness in electronics and transportation. Consumer improved 1.5% as demand for consumer health and safety, home care, stationery and office were partially offset by continued weakness in home improvement. Health Care grew 1.7% due to high demand for medical solutions, food safety, health information systems, and separation and purification sciences.In February 2023, 3M announced it was raising its quarterly dividend 0.7% to $1.50, extending the company’s dividend growth streak to 65 consecutive years. 3M stock yields 6.6%.
PPG Industries (PPG)
PPG Industries is the world’s largest paints and coatings company. Its only competitors of similar size are Sherwin Williams and Dutch paint company Akzo Nobel. PPG Industries was founded in 1883 as a manufacturer and distributor of glass (its name stands for Pittsburgh Plate Glass) and today has approximately 3,500 technical employees located in more than 70 countries at 100 locations.On July 20th, 2023, PPG Industries raised its quarterly dividend 4.8% to $0.65, extending the company’s dividend growth streak to 52 consecutive years.On October 18th, 2023, PPG Industries announced third-quarter results for the period ending September 30th, 2023. Revenue improved 3.8% to a quarterly record $4.64 billion, which was in-line with estimates. Adjusted net income of $493 million, or $2.07 per share, compared to adjusted net income of $393 million, or $1.66 per share, in the prior year. Adjusted earnings-per-share was $0.13 more than expected.PPG Industries’ earnings-per-share have a growth rate of 5.8% over the last decade. We expect earnings-per-share to grow at a rate of 8% through 2028. PPG Industries’ key advantage is that it is one of the most well-known and respected companies in the paints and coatings space. The company is also one of just three similarly-sized companies in this industry, which limits PPG Industries’ competitors. This gives PPG Industries size and scale and the ability to increase prices.
Medtronic plc (MDT)
Medtronic is the largest manufacturer of biomedical devices and implantable technologies in the world. It serves physicians, hospitals, and patients in more than 150 countries and has over 90,000 employees. Medtronic has four operating segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes.Medtronic has raised its dividend for 46 consecutive years.In late August, Medtronic reported (8/22/23) financial results for the first quarter of fiscal year 2024. Organic revenue grew 6% over last year’s quarter thanks to uniform organic growth of 6% in each of the four segments and adjusted earnings-per-share rose 6% thanks to an improvement in product availability and the introduction of new products.In addition, thanks to improved business momentum, Medtronic raised its guidance for 2024. It expects 5% organic revenue growth (vs. 4%-5% previously) and earnings-per-share of $5.08-$5.16.Medtronic’s most compelling competitive advantage is its intellectual leadership in a complicated industry within the healthcare sector. Medtronic also has a strong product pipeline that should drive its growth for the foreseeable future.While the payout ratio has been climbing from 25% in 2009 to 54% today, there is still ample room for dividend growth combined with share repurchases. Moreover, Medtronic has a rock-solid balance sheet, which is essential during downturns.More By This Author:The Best Blue Chip Dividend Stocks For Young Investors
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