Reliable Dividend Aristocrats to Buy Now
https://money.usnews.com/investing/dividends/slideshows/9-reliable-dividend-aristocrats-to-buy-nowSome income investors place a priority on yield above all else. This can backfire, however, since a big payday in the past is no guarantee of future payouts.
A better strategy is to look at long-term consistency and dividend growth – even if that means today’s payout isn’t huge. Growing dividends signal you will be paid more over time and these increases are an important indicator that a company is doing well – and committed to sharing its success with stockholders.
A "dividend aristocrat" is an elite class of dividend stock that has increased its payout at least once a year for the last 25 years or more. Here are nine dividend aristocrats to consider.
1. Cincinnati Financial Corp. (ticker: CINF). CINF is an unassuming investment and insurance company based in Ohio, with about 5,000 employees and a market value of around $15 billion. And while you may not have heard of Cincinnati Financial, that's a pretty good thing considering the wide range of financial firms that became infamous after suffering steep losses and slicing dividends during the 2008 crisis.
What this stock lacks in scale and name recognition it makes up with consistency of dividend payouts. This dividend aristocrat has increased its distribution for an impressive 59 consecutive years. That's a track record low-risk investors should love.
2. People's United Financial (PBCT). Connecticut-based regional bank People's United is another financial firm that avoided a black eye during the financial crisis. This is an impressive feat, given its history as mainly a retail bank with about 400 branches at present.
With 26 years of consecutive dividend increases, PBCT has only recently joined the ranks of dividend aristocrats. However, with a share price that has surged 230% in the last 10 years even as its dividend has kept growing, this is certainly an income stock to watch. – Jeff Reeves
