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Like Dividends? 3 Dividend Aristocrats Worth a Look

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Key Takeaways

  • Dividend-paying stocks can allow investors to build a cash pile quickly.
  • Dividend Aristocrats are known for their reliability.
  • Dividend-paying stocks are commonly less volatile by nature.

Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.

And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.

And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats. Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) all belong to the elite group. Let’s take a closer look at each.

Coca-Cola 

KO is a a member of not only the elite Dividend Aristocrats group, but the Dividend Kings group as well, further underpinning its dividend reliability. As shown below, the company has rewarded its shareholders handsomely for years.

Shares currently yield a solid 2.8% annually, with the company sporting a 4.8% five-year annualized dividend growth rate. 

Zacks Investment Research
Image Source: Zacks Investment Research

Caterpillar

Caterpillar is the world’s largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.

CAT shares currently yield 1.0% annually, undoubtedly on the lower side of things. But while the current yield may be on the lower end, Caterpillar’s 8.2% five-year annualized dividend growth rate picks up the slack.

Below is a chart illustrating the company’s dividends paid on an annual basis.

Zacks Investment Research
Image Source: Zacks Investment Research

McDonald’s

We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop. MCD shares presently yield 2.3% annually, paired with an 8.2% five-year annualized dividend growth rate.

Below is a chart illustrating the company’s dividends paid on an annual basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.

And for those seeking companies with a consistent history of steady payouts, all three above – Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) – fit the criteria.


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Caterpillar Inc. (CAT) - free report >>

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