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The general way to make profits off from company stocks is to buy a certain amount of shares, hold them for a period of time, and sell at a higher price given that the investment wasn’t lost. But another critical way to make money from the stock market is by investing in companies with good dividend yields.
A dividend stock comes from a company that pays small portions of their earnings to shareholders normally on a quarterly basis. It is also common for dividends to be paid out monthly or annually.
Dividends are your technical share of the products of the companies you invest in. Dividend yields reveal what percentage of a stock gets returned to you in the form of dividends.
For example, let’s say that there exists a company whose stocks are priced at $100 per share with a monthly dividend yield of 2.5%. If you bought one share, you would receive a monthly dividend profit of $2.50. If you were to have the means to buy 10 shares, then you would receive a monthly dividend income of $25. By the end of the year, you would make $300.
Normally it is the more mature companies that pay dividends. There exist a list of certain companies that have even increased their dividends consecutively for the past 50 or so years. These companies are known as the Dividend Kings. This isn’t to say that these “kings” aren’t susceptible to becoming devalued considering how unpredictable the stock market can be.
As of 2020, there are 29 Dividend Kings existing in the current economic climate. Many experts consider these buys to be safe when looking at their long history of growth in capital.
- Coca-Cola (KO)
- Johnson & Johnson (JNJ)
- Proctor & Gamble (PG)
- Colgate-Palmolive (CL)
- Lowe’s (LOW)
- Dover (DOV)
- Lancaster Colony (LANC)
- Target (TGT)
- Tootsie Roll Industries (TR)
- Sysco Corp (SYY)
- SJW Group (SJW)
- Hormel Foods (HRL)
- F&M Bank (FMCB)
- Nordson (NDSN)
- Cincinnati Financial (CINF)
- 3M (MMM)
- Emerson Electric (EMR)
- Genuine Parts (GPC)
- Northwest National (NWN)
- American States Water (AWR)
- Parker-Hannifin (PH)
- ABM Industries (ABM)
- California Water Services (CWT)
- Stanley Black & Decker (SWK)
- Federal Realty Investment Trust (FRT)
- Stepan (SCL)
- Commerce Bancshares (CBSH)
- Altria Group (MO)
- H.B. Fuller Company (FUL)
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29 Companies That Annually Increase Their Stock Dividends was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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