Sure most CEOs give lip-service to their commitment to shareholders, but what happens when times are hard. When the economy turns down and the future looks bleak, will the company hoard cash and stop its dividend or put action behind its words?
Question: What do all these have in common?
- Women gaining the right to vote in 1920
- The U.S. Depression in the 1930s
- World War I
- Charles Lindbergh’s transatlantic flight in 1927
- World War II
- Dropping the atomic bomb in 1945
- The Nazi Holocaust
- The Korean War in the 1950s
- The Russian Sputnik satellites in the 1950s
- The Vietnam War in the 1960s/1970s
- President Kennedy's assassination in 1963
- Civil Rights protests in the 1960s
- Landing a man on the moon in 1969
- The Watergate scandal in the 1970s
- The fall of the Berlin Wall in 1989
- The breakup of the Soviet Union in the 1990s
- The Persian Gulf War in 1991
- The impeachment of President Bill Clinton in 1998
- 2008 Financial Crisis
Answer: They all occurred while several companies continued to pay their dividend, uninterrupted, year after year.
This week week, I screened my Dividend Growth Stocks database for companies that have paid uninterrupted dividends for more than 100 years with a yield above 2.0%. The results are presented below:
3M Co. (MMM) provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives and other chemical additives. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 58 consecutive years. Yield: 2.5%
Norfolk Southern Corp. (NSC) operates 20,000 route miles serving 22 eastern states, the District of Columbia, and Ontario, Canada. The company has paid a cash dividend to shareholders every year since 1901 and has increased its dividend payments for 15 consecutive years. The company has paid a cash dividend to shareholders every year since 1901 and has increased its dividend payments for 15 consecutive years. Yield: 2.6%
General Mills, Inc. (GIS) is a major producer of packaged consumer food products company that produces cereal, yogurt and Betty Crocker desserts/baking mixes. General Mills, Inc. is a major producer of packaged consumer food products company that produces cereal, yogurt and Betty Crocker desserts/baking mixes. The company has paid a cash dividend to shareholders every year since 1898 and has increased its dividend payments for 13 consecutive years. Yield: 3.0%
The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries. The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries. The company has paid a cash dividend to shareholders every year since 1891 and has increased its dividend payments for 59 consecutive years. Yield: 3.0%
The Coca-Cola Company (KO) is the world's largest soft drink company, and also has a sizable fruit juice business. The Coca-Cola Company is the world's largest soft drink company, and also has a sizable fruit juice business. The company has paid a cash dividend to shareholders every year since 1893 and has increased its dividend payments for 54 consecutive years. Yield: 3.3%
Pfizer Inc. (PFE) ranks as one of the world's largest pharmaceutical companies, offering a wide range of drugs across a broad therapeutic spectrum. Pfizer Inc. ranks as one of the world's largest pharmaceutical companies, offering a wide range of drugs across a broad therapeutic spectrum. The company has paid a cash dividend to shareholders every year since 1901 and has increased its dividend payments for 10 consecutive years. Yield: 3.5%
Consolidated Edison, Inc. (ED) is an electric and gas utility holding company serves parts of New York, New Jersey and Pennsylvania. Consolidated Edison, Inc. is an electric and gas utility holding company serves parts of New York, New Jersey and Pennsylvania. The company has paid a cash dividend to shareholders every year since 1885 and has increased its dividend payments for 43 consecutive years. Yield: 3.7%
Exxon Mobil Corp. (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. Exxon Mobil Corp., formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. The company has paid a cash dividend to shareholders every year since 1914 and has increased its dividend payments for 23 consecutive years. Yield: 3.5%
IBM's (IBM) global offerings include information technology services, software, computer hardware equipment, fundamental research, and related financing. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 21 consecutive years.
Yield: 3.6%
Caterpillar Inc. (CAT) is the world's largest producer of earthmoving equipment, and a big maker of electric power generators and engines used in petroleum markets, and mining equipment. Caterpillar Inc. is the world's largest producer of earthmoving equipment, and a big maker of electric power generators and engines used in petroleum markets, and mining equipment. The company has paid a cash dividend to shareholders every year since 1914 and has increased its dividend payments for 23 consecutive years. Yield: 3.8%
As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 250+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long MMM, PG, KO, PFE, ED, XOM, IBM. See a list of all my Dividend Growth Portfolio holdings here.
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