A company’s track record of paying dividends is a good indicator of the company’s versatility and adaptability to changing economic conditions. This doesn’t mean dividends will always be safe and payments will always continue, but it is an important factor that dividend investors often consider when choosing income stocks. Three stocks that have been paying dividends since the 1800s are Elie Lilly (NYSE:LLY), Coca-Cola (NYSE:KO)And Toronto-Dominion Bank (NYSE:TD). Here’s a look at where their streaks came from and why these dividend stocks remain great stocks to own today.
1. Eli Lilly: 1885
Eli Lilly has been paying dividends to investors since 1885. Over the years, it has evolved, acquired companies, brought new drugs to market, and continued to be a reliable dividend investment. Today, the stock may not really look like an income investment; its yield is only 0.7%, well below the S&P500 average of 1.4%.
But in reality, it was an exceptional event dividend stocks. The company has doubled its dividend payments in just the last five years. Although its yield seems low, this is only due to the popularity of the stock in recent times. In three years, Eli Lilly shares have soared more than 300%. Without the rapid rise in the stock price, Eli Lilly’s dividend yield would be much higher than it is today.
The company’s growth prospects appear astonishing. Eli Lilly has a few promising assets in its portfolio in Zepbound and Mounjaro, the former being a top weight loss drug and the latter being approved for diabetes. Together, these drugs could generate more than $50 billion in annual revenue for Eli Lilly. With strong financials and tremendous growth on the horizon, the drugmaker is not only a good dividend stock, but also a phenomenal option for investors. growth investors.
2. Coca-Cola: 1893
Soft drink giant Coca-Cola is one of the top growing dividend stocks. He is part of an exclusive club of Dividend Kings, having increased his payouts for decades. Although it has increased its dividend payments for 62 consecutive years, its streak of issuing dividends dates back to 1893. Today, the stock’s dividend yield is 3.1%.
Despite continued rate hikes, Coca-Cola’s dividend is not unsustainable; profits soared along with the increase in dividends. Coca-Cola’s payout rate is about 75%, which is a sustainable rate and leaves room for even more aggressive rate hikes than the already generous 5.4% increase the company announced earlier this year.
Coca-Cola’s business remains strong, with the company forecasting organic revenue growth of around 7% this year. With a versatile and seemingly unwavering business model, this is one of the best dividend stocks you can buy and hold for the long term.
3. Toronto-Dominion Bank: 1857
The longest dividend streak on this list belongs to the Toronto-Dominion Bank. Dating back to 1857, the Canadian bank has one of the best dividend-paying records you’ll find anywhere.
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