When it comes to stocks, they say past performance is no guarantee of future results (and it’s true). Still, past performance can often be a very good indication of what’s likely in the future.
With that as the backdrop, anyone looking for high-quality passive income at this time might want to start with the market’s most-proven dividend payers, as well as its most-proven dividend growers. Those are the so-called Dividend Kings. Here’s a closer look at your top five bets among these names right now.
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If you’re not familiar with them, they’re not difficult to understand. A Dividend King is simply a stock that’s raised its per-share payout annually for a minimum of 50 consecutive years. There’s no minimum annual increase required … just some degree of annual increase in its dividend payment.
The impressive aspect of these companies, of course, is that they remain able to continue paying and growing their yearly dividend at all. It demonstrates that they raise the dividend in good years, but also that they’re fiscally capable of pushing through competitive and economic headwinds over and over again to raise it in bad years too.
There’s a trade-off, of course. Income investments tend not to be fast growers; single-digit percentage revenue and earnings growth is the norm for the vast majority of Dividend Kings.
This trade-off is typically worth it for investors needing reliable income and inflation-beating income growth, though.
If that’s you, here are five that just might have a place in your portfolio.
Procter & Gamble (NYSE: PG) is such a commonly suggested stock pick that it’s almost become a cliché. On the other hand, clichés come into existence because they’re typically true.
You likely already know why P&G has been able to increase its dividend payment in each of the past 69 (soon to be 70) years. That is, it’s the parent company to some of the world’s best-known consumer goods, like Pampers diapers, Tide laundry detergent, Gillette razors, Dawn dishwashing liquid, and Crest toothpaste, just to name a few. These are familiar brands that consumers buy over and over again, mostly out of habit and sheer comfort. These habits are also often passed down from one generation to the next.
