A Fixed Income Dream – A Dividend Increase Every Year for Over 35 Years

Dividends

 

 

 

 

 

 

Investors either in retirement or planning on retiring in a few years are always looking for ways to insure they have a secure and steady source of income.

Here are some facts for your review:

  1. The use of bonds for fixed income has been a favorite option for many years. However, bond yields since the 2009 financial crisis have fallen so far they may no longer be a viable option.
  2. Investors may need to generate 6-8% a year in total returns to make sure they won’t out-live their money. Bonds yielding 2-3% just won’t do that for you, especially given the guarantee that bond prices will fall as future rates start rising.
  3. Here are 5 blue-chip stocks that you will recognize, they have not only paid dividends for over 35 years, but have also increased their dividends each year for over 35 years.
    1. Procter & Gamble (NYSE:PG) currently pays a 2.99% dividend and has increased its dividend each year for the last 58 years.
    2. Altria Group (NYSE:MO) currently pays a 3.80% dividend and has increased its dividend each year for the last 44 years.
    3. SYSCO Corporation (NYSE:SYY) the largest food distributor in the US currently pays a 3.03% dividend and has increased its dividend each year for the last 43 years.
    4. PepsiCo (NYSE:PEP) currently pays a 2.83% dividend and has increased its dividend each year for the last 42 years.
    5. Clorox (NYSE:CLX) currently pays a 2.72% dividend and has increased its dividend each year for the last 37 years.
  4. Each of these blue-chip stocks have a high probability of increasing their dividends each year during the years of your retirement.
  5. The nice thing about owning these blue-chip stocks, not only do they pay consistently increased dividends, they may also have capital gains over the years.

 

 

Disclosure: I am long PG, MO,PEP and plan on adding CLX in the near future.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s