Consider this: If you bought shares of Johnson & Johnson fifteen years ago, you would have been buying a stock offering a $0.72 dividend annually, per share. At the time, that equated to about a 1.3% yield. But today, the stock offers up $3.20 annually in dividends. In other words, if you had held this stalwart through the years, you'd be getting a nice 5.6% yield today on your cost basis.
Dividend stocks are the cornerstones of a well-constructed retirement portfolio. But when you pay for shares, you're buying more than the current yield -- you're buying the potential for greater and greater payouts over time. The three stocks I'm discussing today have the same potential (as JNJ) for dividend growth: Lowe's (NYSE:LOW) is the part of the duopoly in America's home improvement industry, with a 17% market share. Clearly, business has been good in the home improvement industry, because the second stock on our list today is paint specialist Sherwin-Williams (NYSE:SHW). Cardinal Health (NYSE:CAH) has slowly become something of a healthcare conglomerate.
Source: Motley Fool
Related Articles:
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
- 7 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
It’s no secret that most investors who buy high-yield stocks are looking for income. But every once in a while, yield hunters may come acros...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. Why Growth-Focused Di...
-
Not all stocks that pay high dividends are too good to be true. In fact, some stocks with high yields have lots of room to grow, or they tra...
-
After an abysmal 2018, real estate investment trusts (REITs) have been on a roll this year. After pulling one of the worst performances sinc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Cheap stocks can be hard to find in a high-flying market like the current one. The S&P 500 is flirting with all-time highs following its...
-
Large-cap consumer staples companies are not known for making big moves in their share prices. But on the morning of Monday, April 22, Kimbe...
-
The past few years, I’ve urged readers to study a little-followed group of businesses I consider “cash cows.” Large investors generally igno...
-
Big, boring AT&T (NYSE:T) recently made a splash, selling its minority stake in streaming video site Hulu. AT&T stock gained 0.7% on...
0 comments
Post a Comment
Post a Comment