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
-
Not all utility stocks are cut from the same cloth. There have been some dividend blow-ups in the sector, as a few have become over-leverage...
-
Two conservative industry bellwethers with giant yields and strong businesses -- there's a lot to love here. Dividends are only as good ...
-
Just like stocks can be expensive, REITs can also be a bit pricey. But rather than use a price-to-earnings ratio, the best way to look at RE...
-
In today’s market, high-yield stocks are usually not the safest bets. I mean, if a company is solid and offers a yield much higher than its ...
-
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 ...
-
Studies have shown that there is no single best season or month to trade stocks -- take that, January Effect! That said, there are some soli...
-
This REIT continues to make a strong value proposition for investors that value income stability in a volatile market. It convinces in terms...
-
You have good reason to be nervous. Anyone who had just seen their retirement account take a big haircut would lose sleep. The question is, ...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a m...
0 comments
Post a Comment
Post a Comment