In fact, with the exception of the last year, the company has increased its dividend every year for more than three decades. But ExxonMobil Corp. (NYSE: XOM) has managed to avoid that outcome. Volatility in crude oil prices over the past decade forced many gas and oil dividend stocks to cut their payouts. This makes it a fantastic DRIP stock to invest in. Again, increases go a long way to show that the company appreciates shareholders and wants to reward them.ĪBBV has a strong yield of 4.81%, much higher than the S&P 500 average of 2%. The biopharmaceutical company has delivered dividend increases for the last five years. And the company has a current profit margin of 12.4%. And by the end of June 2021, revenue for the past 12 months was $53.73 billion - an increase of 48.31%. That number climbed higher, accelerated by the pandemic in 2020, when it hit over $45 billion. Its total revenue in 2018 was roughly $32 billion. The Parkinson's disease market is expected to reach $5.69 billion by 2022, which could further drive ABBV's growth. This results in lower risk for developing diseases like Parkinson's. Mitokinin developed technology to increase the activity of the Pink1 compound that's heavily liked to Parkinson's disease.īy increasing Pink1 levels, overall brain activity and synaptic functions increase. 2: AbbVie Inc.ĪbbVie Inc. (NYSE: ABBV) is one of the best dividend stocks to date because of the company's steady growth through acquisitions - like earlier in 2021, when ABBV acquired the biotech company Mitokinin. The last time the yield was this high was during the 2008-2009 economic recession, meaning that 3M is trading at an attractive value. While that's not quite 4%, that is roughly double what you would get from dividend stocks in the S&P 500 index today.Īnd to top it off, 3M's current yield is toward the high end of the company's historical range. The pandemic and global economic shutdowns made the recent increases small in comparison.ģM's current dividend yield is around 3.3%. Of course, not every year includes a double-digit percentage hike. That's roughly three times the historical rate of inflation, which means that the buying power of the dividends investors receive have actually grown over time. The dividend payout has increased at an annualized rate of around 10% over the past decade. Only 65 companies have earned this status right now.Īfter 50 years of consecutive increases, a company earns the unofficial title as a Dividend King - an even more rare and remarkable feat.Īnd 3M beats that rating, which is an impressive achievement in its own right. Anything more than 25 annual increases qualifies an S&P 500 company as a Dividend Aristocrat. Over the company's lifetime, 3M has raised its dividend for 63 consecutive years. 3: 3M Co.ģM Co. (NYSE: MMM) is a company that's been around for a long time - more than 100 years. So, here are three DRIP stocks to buy now that have a dividend yield of 4% or higher to help grow your returns. But your DRIP plan will remove any worry about trying to time out the market. Of course, your yield will fluctuate based on the share price. ![]() What's more important is that the company is good enough to pay its dividend steadily over time, and even grow it. You want to make sure your money is working for you and that you're investing in good companies that return some of their wealth back to the shareholder. ![]() However, not all dividend stocks are good DRIP investments. Some even offer discounts on shares via DRIP. These shares are often commission-free, and they enable investors to buy fractional shares. If dividend stocks provide investors with predictable income, then DRIP stocks offer significant long-term growth potential.Īs a result, DRIP stocks allow you to own more shares of the company or fund over time, making them an excellent way to consistently grow your wealth by compounding your returns.ĭividend reinvestment plans (DRIPs) are a simple, wealth-compounding process that uses dividends paid by the company or fund to buy more shares of that same investment.
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