Best Long-Term Dividend Stocks

When searching for the best long-term dividend stocks, you should focus on companies with a good business, a stable income stream, and a proven record of paying dividends. The short-term price movement won’t matter as much; the long-term will take care of itself. You should check out the disclosure policy for your online broker to learn more about our recommendations. Listed below are some of our favorite companies.

Emerson Electric

With a history of paying out solid dividends and a growing presence in emerging markets, Emerson Electric has become an investor’s favorite. With a positive balance sheet, Emerson Electric can easily cover its dividend payments with its free cash flow. And since the company’s long-term future is positive, dividend growth should continue in the near future. With a recent 39 percent stock price increase, Emerson Electric stock is a compelling option for long-term dividend investors.

The company’s sales and manufacturing costs are relatively aligned regionally. However, since the U.S. dollar is strong, its foreign competition may be able to undercut Emerson’s earnings. These factors could have a negative impact on Emerson stock in any quarter. However, dividend growth has remained positive since 2007.

Travelers Companies

When it comes to determining which dividend stocks to purchase, the Travelers Companies should be a top choice. The company provides property and casualty insurance and has a reputation for paying large dividends when bad things happen. The company has been around for 150 years and has paid out dividends almost every year. While the company is a solid buy for long-term dividend investors, there is plenty of room for growth.

As of this writing, the company has a solid history of paying out dividends and its earnings per share have increased by 8.1% annually. Its dividend has grown steadily for the past decade, despite the Great Recession. However, this growth has been tempered by the company’s relatively low payout ratio. If you’re looking for a long-term dividend stock, consider investing in the Travelers Companies.

Coca-Cola

If you are looking for a company with steady growth and a high dividend payout, Coca-Cola may be a good option for you. The company has increased its dividend for the past six decades, and recently announced its 60th annual increase. The increase is nearly 5%, or 44 cents per share. The increase was backed by stock buybacks. While the company’s earnings have remained relatively stable, the dividend increases reflect a commitment to rewarding shareholders.

The stock has consistently raised its dividend over the past few years, and is now higher than the S&P 500. If you buy 1,000 shares, you would receive $440 in dividends during the first quarter of 2019. This makes Coca-Cola a great stock to own for income investors. These dividend stocks pay a quarterly dividend and may increase in value over time. However, if you are not sure about the stock’s future prospects, we recommend investing in smaller companies instead.

Enbridge

If you’re looking for the best long-term dividend stock in Canada, look no further than Enbridge. This company operates an extensive network of pipelines that move 18 percent of the natural gas consumed in the U.S. and 62% of Canadian crude oil to the U.S. Its dividend has grown consistently for 27 years, and it continues to have room to grow. Its business model is self-funding, with a payout ratio of 65% of its distributable cash flow. In addition, the company’s outlook includes growth in cash flow per share of five to seven percent annually, and it sees opportunities to build out its export infrastructure and serve more customers with its gas utilities.

Despite its recent volatility, Enbridge is likely to continue to increase its dividend for the next two years. In fact, the company recently reiterated its three-year outlook and plans to deliver dividend growth of 10% per year in 2019 and 2020. The company will also likely have a strong dividend payout growth outlook over the next two years, thanks to a pipeline expansion plan and $3 billion in asset sales that will help offset the risk of a downturn in commodity prices.

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