Investing in dividend stocks is one of the best ways to make money in the stock market. Yes, it’s great to see the value of your stock increase, but it’s also comforting to know that you’ll get paid no matter what the stock price is.
Most dividend payments are relatively modest, so the true value comes from owning them for the long term. Unfortunately, not every company can maintain its dividend even in difficult circumstances. abundance S&P 500 Over the past few years, companies have had to cut or slash their dividends.
However, three companies to which this does not apply wal-mart (WMT +1.44%), coca cola (To +0.55%)And McDonald’s (MCD +2.20%). they are dividend stock You don’t have to guess again and you can keep it going forever.
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1. Walmart
Walmart has two major things working in its favor: volume and pricing. No company can compete with its footprint (5,212 US retail units), and because of its huge volume sales, it can sell items cheaply without worrying too much about margins. It is because of this convenience that it has long been a favorite destination for anyone looking for value.
Leaving aside traditional retailing, Walmart has made an impressive turnaround over the past few years, indicating that the company is ready to become a force in other areas. Its subscriptions are growing (global subscription fee revenue grew 15.1% in the most recent quarter); Its digital advertising business is booming; And global e-commerce sales now account for 23% of its total revenue.
today’s change
(1.44%) $1.89
current price
$133.34
key data points
market cap
$1.1T
day limit
$131.13 -$133.47
52wk range
$93.43 -$134.69
volume
14k
average volume
19m
gross margin
23.41%
dividend yield
0.72%
Walmart is a Dividend King (a company whose dividend has increased for 50 consecutive years), with 53 years of growth under its belt. And considering how much money it’s making, you can bet the streak is as safe as they come. Its payout ratio at the end of its most recent quarter (ending January 31) was only around 44%.
Walmart was also a safe long-term bet, but now that the company is thriving in the digital age, its growth profile is much stronger. It has outperformed big-name tech stocks over the past five years Apple, Microsoft, Amazon, metaAnd Tesla. It’s a dividend company, but it’s also proving to be a two-in-one powerhouse.
2. Coca-Cola
Coca-Cola has the branding power and distribution that makes it one of the more consistent companies you’ll find in any industry. this is one long term principal Because it sells products regardless of the economy. And that’s largely because it continues to adjust its portfolio to suit changing priorities.
It has flagship products such as Coca-Cola and Sprite, but also has brands in categories such as water, coffee, tea, juice and even wine. Based on its size and maturity, Coca-Cola is not a company one would expect to see double-digit percentage growth annually, but you know you are getting efficiency and a safe dividend.
today’s change
(0.55%) $0.45
current price
$81.27
key data points
market cap
$349B
day limit
$80.40 -$81.38
52wk range
$65.35 -$82.00
volume
679
average volume
15
gross margin
61.82%
dividend yield
2.54%
Coca-Cola is also a dividend king (64 years of growth) and its dividend yield is regularly above the market average. Over the past decade, its average dividend yield has been around 3%.
KO dividend yield by data YCharts
Coca-Cola doesn’t have much growth potential, but its dividend is worth holding for the long term.
3. McDonald’s
On the surface, McDonald’s is a fast-food restaurant. And although this is true for restaurants, from a corporate perspective, McDonald’s is a real estate and franchise powerhouse. It owns the real estate on which most of its stores are located and then charges the franchisee rent and collects royalties.
This asset-light business model allows McDonald’s to operate with much higher margins than traditional restaurant chains. It also allows the company to give priority to shareholders with its profits. McDonald’s is the only non-dividend king on the list, but its recently announced increase marks 49 consecutive years, so it’s on its way.
today’s change
(2.20%) $6.08
current price
$282.47
key data points
market cap
$201B
day limit
$275.15 -$282.80
52wk range
$271.98 -$341.75
volume
14K
average volume
3.5M
gross margin
57.31%
dividend yield
2.57%
Yes, McDonald’s dividend is consistent, but one area where it stands out is how fast it is growing that dividend. Over the past decade, it has nearly doubled its dividend payout. That’s a much faster pace than Walmart, Coca-Cola and many other mature dividend stocks that have been paying for as long as McDonald’s.
mcd dividend by data YCharts
McDonald’s stock has performed poorly in recent years, but its appeal is undoubtedly its dividend. This is an income stock that will remain attractive for a long time.