Investing in shares for dividend is a strategy for patient investors. Companies only pay dividends once a quarter, which is calculated on an annual basis. You never achieve the full potential of a stock if you keep if for only a few months. If you only own a share for a few weeks, you may not receive a dividend at all.
The real strength of dividend stocks is their constant long-term revenue, not just over a few years but over many decades. You will be generously rewarded if you choose the right shares that slowly increase the dividend yield. There are not many companies that can guarantee this in the long term, but in this article we explain 3 of them. These three companies have already paid dividends for decades and will probably continue to do so in the foreseeable future.
General Mills – 3.7% RETURN
General Mills, Inc. (NYSE: GIS) is the perfect example of an established and reliable company that has been paying dividends for more than 100 years. In 1898 the company paid dividends for the first time. GIS is a company operating in the packaged food industry and owns brands such as Cheerios, Betty Crocker and other brands in the kitchen pantry.
A group of loyal customers ensures a reliable cash flow that supports the payment of dividends over the long term. Due to a challenging market, the share price dropped slightly in 2017. In March this year, GIS increased the dividend. Currently, it almost pays double the dividend it paid ten years ago. Short-term volatility is therefore no reason for panic when investing for dividend.
Consolidated Edison – 3.1% PERFORMANCE
As one of the oldest electric utility companies in the US, Consolidated Edison, Inc. (NYSE: ED) is also one of the oldest companies paying dividends on Wall Street. The company distributed its profits for the first time in 1885.
All utility companies are attractive because renown companies have a reliable business model. Stable cash flow stems from the virtual monopoly that it enjoys in an industry which is highly regulated and not easy to enter for new companies.
Jonhson Controls – 2.4% RETURN
Since 1887, Jonhson Controls (NYSE: JCI) has been paying dividends. The company started by offering “building controls” and HVAC products, but over the years it evolved and now produces everything from energy efficiency to cooling technology and high-tech components for cars.
After the record years in 2015 and 2016, the slowdown of the car market in the US is depressing the stock, but the dividend that has been paid for a century shows that there is no reason to think that this company is in trouble in the long term.