Have a quality portfolio dividend stocks This deposit of money into your account makes occasional market dips much easier to tolerate. Three Motley Fool contributors recently selected three solid companies with long records of paying consistent dividends to shareholders. here’s why Philip Morris International (NYSE:PM), Williams-Sonoma (NYSE:WSM)And Real estate income (NYSE:O) could provide you with years of passive income.
This Classic Dividend King Generates Surprising Growth
Jeremy Bowman (Philip Morris International): Philip Morris International may seem like a surprising choice for a lifetime dividend stock, but the company is more than just a tobacco stock in an era of declining cigarette consumption.
Philip Morris has the assets to compete with any dividend stock. Including the time when it was combined with Altria, Philip Morris has increased its dividend every year for more than 50 consecutive years. The international Marlboro seller also currently offers a dividend yield of 5.1%, enough to make it a high-yielding stock, but what really makes the stock attractive to long-term dividend investors is the how the company managed to move towards next-generation products. such as Iqos heated without combustion tobacco sticks and Zyn nicotine sachets.
In fact, smoke-free products now represent around 40% of its turnover and this business is growing rapidly. Overall shipment volume increased 3.6%, driven by 21% growth in heated tobacco units and 36% in smokeless oral products.
This performance helped push organic revenues up 11% to $8.8 billion and adjusted, currency-neutral earnings per share (EPS) to $1.50. The company also demonstrated its confidence in the Iqos brand by purchasing the sales rights in the United States from Altria for $2.7 billion, and is now strengthening its presence in this market.
Even though cigarette consumption is declining, the demand for nicotine products still exists and Philip Morris is ahead of its competitors in capturing it. This should pay dividends handsomely to investors over the coming years.
Price gains plus dividends
Jennifer Saibil (Williams-Sonoma): Williams-Sonoma is a great value stock that struggles with inflation but shows resilience. Sales are down, but the company is very profitable and maintains a strong operating margin despite inflationary pressures.
It serves a high-end clientele, so it’s less likely to see customers pinching pennies. However, some of its home goods brands, including its own name, Pottery Barn and West Elm, target a middle-to-affluent demographic, and those customers are dropping out or holding off. Despite the slowdown in sales, the company’s rigorous cost management helps maintain cash flow. This translates into solid business and a reliable dividend, even under these conditions.
In the first quarter of 2024 (ended April 28), sales fell 4.9% compared to last year. But EPS went from $2.35 last year to $3.48 this year, or $4.07 with a one-time adjustment…
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