It is harder than ever for investors to get the income from their portfolios. Although stock prices have risen, a difficult environment has led to many companies reducing their dividend payments due to the COVID-19 pandemic. As interest rates remain extremely low, there are also not many good alternatives for the stock market for income investors.
Fortunately, there are still some elite businesses that investors can rely on for dividend growth, even in difficult times. Below we look at three stocks that hold impressive dividend records and the amount they have to pay to their shareholders within the next month.
Image Source: Getty Images.
1. Coca-Cola
Coca-Cola (NYSE: KO) has one of the longest dividend increases in the stock market. The liquor giant has been making bigger dividend payments to its shareholders for 58 years in a row than the previous year. Currently, Coca-Cola pays a dividend yield of more than 3.3%, which is well above the average for the market as a whole.
Coca-Cola’s business has gone through difficult times over the past few years. The company has relied on its sugary soft drink for much of its history, but the move to healthier food and beverage options has forced it to turn around. It is well done to expand its product lines, with sparkling water and still water, juices, teas and other beverages in the mix.
Historically, Coca-Cola has not wasted any time in getting its annual dividend increase done, with the announcement that the payout in the first quarter would usually take place mid to late February. Based on financial performance and recent practice, investors are likely to receive only a boost of $ 0.01 per share in the quarterly payout, which will amount to $ 0.42 per share. Nevertheless, investors in the liquor giant will take every penny they can get, hoping that Coca-Cola’s growth efforts will also bear fruit.
2. Walmart
In the shop space, Walmart (NYSE: WMT) was a longtime champion. The company has grown tremendously over the decades and played an important role with its extensive footprint of stores. It has also become a popular choice for income investors as it has put together a streak of 47 consecutive increases in its annual dividend payments.
Many mature businesses end up emphasizing more than growth, but Walmart has been an exception lately. The stock has doubled in the last four years as the company has built up an increasingly strong range of e-commerce capabilities to compete against the Amazon.com (NASDAQ: AMZN) and has used its store network to its advantage as it advances with its distribution strategy. These strategic moves have kept Walmart relevant in an increasingly digital world.
Walmart almost always announces its first-quarter dividend increases, with announcements usually appearing in late February. Shareholders can probably expect another $ 0.01 per share boost, which they have received over the past year. The resulting dividend payout of $ 0.55 per share would represent a somewhat stingy return of about 1.6%, but the share’s total return was more than generous.
Albemarle
Last up, Albemarle (NYSE: ALB) was at the forefront of a new trend, but it has a long history of treating shareholders properly. Rising dividends have been on the menu for 26 consecutive years, making it a recent addition to the Dividend Aristocrat list.
Albemarle is a specialist chemical producer, but the lithium industry has received the most attention lately. The demand for battery storage has dramatically increased the need for lithium, and this has turned Albemarle into a very sustainable business. Yet Albemarle has experienced disruptions as a result of the pandemic and has harmed its recent results.
Investors will be watching closely over the coming weeks to see what Albemarle does with its dividend. The chemical company usually makes an announcement during the last week of February, and a rise to about $ 0.40 per share per quarter would be consistent with previous practice. This would give Albemarle only a return of 1%, but there are many growth prospects.
Look for greater dividend control
It is important to get the income from your portfolio. With strong dividend stocks, you can meet your cash needs, and Albemarle, Walmart and Coca-Cola all have a mix of solid income and growth prospects to help you now and in the future.