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- 💥 These been paying dividends for 100 years
💥 These been paying dividends for 100 years
and are expected to continue
Michael Wight
November 13, 2024
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These Companies Have Been Paying Dividends for 100 Years
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In today’s issue, we’ll talk about companies that have a solid history (of least least 100 years) of offering dividends.
All the companies below have been paying dividends for for over 100 years with regular increases.Adding these to your portfolio can be beneficial as they’re likely to continue to reward share holders.
1. Johnson Controls Inc. (JCI)
Current Yield: 1.75% (0.37 USD quarterly amount)
Dividend Since: 1887
Johnson Controls has been a leader in building efficiency solutions, especially in HVAC, fire protection, and energy storage. Its involvement in green technologies and smart building solutions positions it well for growth, as sustainability becomes a global priority. For income-focused investors, the company's consistent dividend and growth potential in energy-efficient tech are appealing. However, with payout ratios in past years at a very conservative 40%, there’s room to raise the dividend or to sustain it for the next hundred years.
Why Avoid?
Johnson Controls' exposure to cyclical sectors like construction can cause fluctuations in earnings. Additionally, competition from other tech-based solution providers poses a risk, particularly if innovation or demand slows in the building sector.
Expected Upside and Dividend Growth
The company's fourth-quarter earnings per share (EPS) exceeded both market consensus and the firm's guidance, indicating robust operational performance. Plus, JCI stock is trading at a significant valuation discount relative to its closest competitors.
The upside in JCI lies in the potential for growth in green technology adoption, and a moderate dividend increase could be expected as demand for sustainability solutions rises. The average price target is $80.90 with a high forecast of $90.00 and a low forecast of $64.00. The average price target represents a 8.99% change from the last price of $74.23.
2. General Mills (GIS)
Current Yield: 3.66% (0.60 USD quarterly amount)
Dividend Since: 1898
General Mills is a staple in the consumer goods sector with well-known brands like Cheerios and Pillsbury. Its position in a defensive sector makes it a reliable income choice, especially for those seeking stability over high growth. The steady demand for essential goods supports a consistent cash flow for dividend payments.
Why Avoid?
Growth potential is limited as consumer preferences shift to healthier options, and General Mills faces intense competition. Additionally, high debt from acquisitions could limit significant dividend hikes in the near term.
Expected Upside and Dividend Growth
Most people agree that General Mills is currently undervalued, trading at a Price-To-Earnings Ratio of 16.4x, significantly below the peer average of 26.7x and the industry average of 19.6x, while also being priced at 63.1% below its estimated fair value of $199.51.
Investors should expect slow but stable returns, ideal for conservative portfolios.
3. Church & Dwight Co., Inc. (CHD)
Current Yield: 1.07% (0.28 USD quarterly amount)
Dividend Since: 1901
Church & Dwight’s portfolio of consumer brands, such as Arm & Hammer, provides reliable cash flow and resilience in economic downturns. With a focus on household products, the company benefits from consistent consumer demand, supporting a stable dividend history.
Why Avoid?
The company’s growth is constrained by market saturation and intense competition in the consumer goods sector. Furthermore, the dividend yield is relatively low, which may deter those seeking higher income.
Expected Upside and Dividend Growth
The upside in CHD is limited but steady, with modest dividend growth expected as the company focuses on maintaining market share rather than rapid expansion. The average price target for Church & Dwight Company is $108.29. This is based on 14 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $120.00 ,the lowest forecast is $85.00.
4. Stanley Black & Decker, Inc. (SWK)
Current Yield: 3.64 (0.82 USD quarterly amount)
Dividend Since: 1877
Known for its tools and hardware, Stanley Black & Decker is a solid choice in the industrial sector. Its strong brand recognition and diversified product lines offer reliable revenue streams, making it attractive for dividend-seeking investors.
Why Avoid?
The industrial sector's cyclical nature means earnings are vulnerable to economic slowdowns. Rising input costs and competition from other tool manufacturers can also impact margins and growth potential.
Expected Upside and Dividend Growth
SWK has potential upside due to strong brand loyalty, but dividend growth may remain moderate as the company navigates economic cycles. Long-term growth could benefit from increased DIY trends and industrial recovery.
The analyst price target for Stanley Black & Decker (SWK) is $135.00, with a median of $102.00, a low of $94.00, and an average of $107.08
5. Eli Lilly and Co (LLY)
Current Yield: 0.63% (1.31 USD quarterly amount)
Dividend Since: 1885
Eli Lilly has a strong position in pharmaceuticals, particularly in areas like diabetes and neuroscience. Its innovative pipeline supports growth potential, with new products offering robust revenue streams, translating into sustained dividend payments.
Why Avoid?
The pharmaceutical industry is highly regulated, with patent expirations and competition from generic drugs posing risks to revenue stability. Additionally, political pressures on drug pricing could impact profitability. Moreover, the yield is low but we still think this can be a good investment due to it having some big names like with Mounjaro and Zepbound potentially delivering billions in revenue for years to come
Expected Upside and Dividend Growth
With an innovative pipeline, Eli Lilly’s stock has considerable upside, and moderate dividend growth is expected as new drugs contribute to revenue. However, investors should weigh regulatory risks carefully.
The average price target for Eli Lilly and Company (LLY) is between $1,019.83 and $1,044.50. Also, it’s known for increasing dividend from time to time.
6. Procter & Gamble Co. (PG)
Current Yield: 2.40% (1.01 USD quarterly amount)
Dividend Since: 1891
P&G is a household name with a strong portfolio across various consumer product categories. Its global reach and brand power provide stability, and its status as a dividend aristocrat makes it a favorite for dividend investors.
Why Avoid?
Market saturation and slow growth in mature product lines limit P&G’s growth prospects. Additionally, rising input costs can put pressure on margins, potentially limiting significant dividend growth. Plus, PG has been slowing price increases because consumers are not tolerating them.
Expected Upside and Dividend Growth
While growth may be modest, the company’s history of consistent, small dividend increases is likely to continue, making it ideal for conservative income-focused investors.
The consensus price target is $173.38, with a high of $191 from Morgan Stanley and a low of $130.
7. The Coca-Cola Co (KO)
Current Yield: 3.04% (0.49 USD quarterly amount)
Dividend Since: 1893
Coca-Cola's brand strength and global presence in the beverage industry make it a reliable dividend stock. Its portfolio includes not just sodas but a growing selection of waters, teas, and other drinks, adding diversity and potential resilience.
Why Avoid?
The soda industry faces health-related challenges, with consumers shifting away from sugary drinks. This trend could limit growth potential, and the dividend yield may not be as high as other income-focused options.
Expected Upside and Dividend Growth
With stable revenues, Coca-Cola offers modest upside, with moderate dividend increases likely as it adjusts its portfolio to align with changing consumer preferences. Coca-Cola's dividend is 68% of its estimated 2024 earnings, and analysts expect mid-single-digit long-term earnings growth. The company has increased its payout for 62 straight years.
The average price target for Coca-Cola is $75.38. The highest analyst price target is $85.00 ,the lowest forecast is $71.00. The average price target represents 18.41% Increase from the current price of $63.66.
8. Colgate-Palmolive Company (CL)
Current Yield: 2.16% (0.50 USD quarterly amount)
Dividend Since: 1895
Colgate-Palmolive’s dominant position in oral care and personal hygiene products makes it a steady performer in consumer staples. Its resilience and cash flow generation support reliable dividend payments, making it a solid choice for income-focused investors.
Why Avoid?
Limited growth in developed markets and competition in the consumer goods space restrict Colgate’s upside. The dividend yield is also relatively modest compared to higher-yield options in other sectors.
Expected Upside and Dividend Growth
The upside is limited but stable, with dividend growth expected to be moderate as the company continues to innovate within its core markets. Experts see 8% earnings-per-share growth in the coming years, and the dividend yield is over 2.0% right now. This means earnings growth and dividends could provide returns above 10% per year.
The average price target for Colgate-Palmolive (CL) is $106.09, with a high of $121.00. This represents a 13.67% upside from the average price target.
9. PPG Industries, Inc. (PPG)
Current Yield: 2.17% (0.68 USD quarterly amount)
Dividend Since: 1899
PPG is a leader in paints, coatings, and specialty materials. Its exposure to diverse markets, including industrial, automotive, and construction, offers stability and diversification, making it a reliable dividend choice.
Why Avoid?
PPG’s performance is tied to the health of various industries, making it somewhat cyclical. Additionally, rising costs for raw materials can impact profitability, limiting substantial dividend growth.
Expected Upside and Dividend Growth
With potential upside tied to industrial recovery, PPG may see moderate dividend increases as demand for coatings and specialty materials grows, particularly in emerging markets.
The average 12-month price target for PPG Industries, Inc. (PPG) is $149.71, with a high estimate of $165 and a low estimate of $136. This represents an 18.39% change from the last price of $126.45.
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