These seven stocks have done the impossible.
Each one of them has paid adividend like clockwork for more than a
century. In fact, the longest-standing dividend payer on the list
hasn't missed a payment since 1877 -- when Rutherford B. Hayes was
Think of everything that has happened to our financial system since
that time...World War I and II... The GreatDepression ... The "Dot
Com" bubble... The list goes on.
For the seven stocks I'm about to show you though, it didn't
matter. These companies breezed through every economic downturn
America has ever faced without so much as a hiccup in their
dividend payments. In fact, most of them were able to increase
their payouts during those periods...
That's pretty remarkable considering that in 2009 alone more than
800 American companies had to cut their dividends because of the
fallout from the subprime crisis.
Now to be fair, there is nothing "secret" about these stocks.
You've probably heard of all these companies before. But to me,
that's not a deterrent. In fact, it's part of what makes these
seven stocks so attractive.
That's because in all my years of investing, I've found that it's
not the "high-flying" tech startups or the risky biotech plays that
make investors the most money. Just ask those who bought
on the day of itsIPO . They're already down 47% on their original
investment, and the stock hasn't even been trading for five months.
Instead, from what I've seen, the most successful companies are the
ones that we see every day. The ones that are so integral to our
way of life, that if they disappeared tomorrow, it would have a
direct impact on how we live.
Take one of the stocks on the list,
, for example. Ask anyone in the world for a Coke, and chances are
that 99% of them will know what you're talking about. Coca-Cola is
such a dominant company that one of its biggest competitors --
Dr Pepper Snapple (NYSE:
-- actually pays to use Coke's distribution network.
Given that kind ofmarket dominance, is there any question as to how
Coca-Cola has been able pay an uninterrupted dividend since 1893...
and increase its payout by over 1,100% in the past 25 years alone?
Nothing is guaranteed, but I've been investing for two decades now.
And during that time I've found that it's companies like Coca-Cola,
and the rest of the companies below -- the ones that dominate their
markets AND reward shareholders with steady (and increasing)
dividends -- that can make investors the most money in the
As you can see, every stock on the list is one of the most
dominant companies in the world. If any of these businesses were to
suddenly go under, it would have a direct impact on the way we live
of our daily lives.
That's why when you own stocks like this in your portfolio, you
don't have to worry much aboutbear markets... recessions... "flash
crashes"... or rising interest rates. If history is any indicator,
you just simply let their steady dividend payments grow your wealth
year in and year out.
And those dividends have been good to the companies' share
prices as well. Despite being more than 100 years old, each of
these stocks has handily beaten the market in the past 10 years.
The average return for the seven stocks in this list is 143% --
significantly higher than the 87% return for the S&P 500 over
the same period.
Risks to Consider:
Don't get me wrong, past performance is never an assurance of
future success. Just because these stocks have paid consecutive
dividends for over a century, it doesn'tguarantee that they'll
continue to do it for another 100 years.
Action to Take -->
And in fact, as much as I like Coca-Cola, it does seem a bit
expensive right now. It's currently trading at aP/E ratio of 20 --
significantly higher than the S&P's long-term average of 15.
But it just goes to show you that when you buy the market's most
dominant companies -- the ones that have a competitive advantage in
their industry and show a commitment to their shareholders --
you're buying companies whose dividend can withstand nearly
anything... including the current economic environment.
-- Paul Tracy
[Note: I recently identified more of the market's most dominant
dividend companies, in my latest presentation, The Public "WGB
Retirement Fund." In it, I've found an investment "fund" with 12
stocks that have been rewarding shareholders with dividends for
years... and pay yields up to 11.8%. It's little wonder why this
"fund" has beaten the market hands down for the past decade and why
some of America's largest pension funds are also investing billions
into these stocks. To learn more about this "fund," follow this
Paul Tracy does not personally hold positions in any securities
mentioned in this article. StreetAuthority LLC does not hold
positions in any securities mentioned in this article.
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