7 Good Dividend Stocks to Buy Now

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Good Dividend Stocks

Income investors are always on the lookout for good dividend stocks with a reliable record to use as a basis for building strong investment portfolios.

Here are seven good dividend stocks that offer strong asset appreciation in addition to a long string of rising dividend income — between six and 53 consecutive years of annual dividend boosts.

 

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7 Good Dividend Stocks to Buy Now: #7

Ameren Corporation (NYSE:AEE)

The Ameren Corporation offered its shareholders robust total returns over the past several years. The company’s current $0.475 quarterly dividend payout is nearly 4% higher than the $0.4575 payout from the same period last year. This new quarterly distribution corresponds to a $1.90 annualized payout and a 2.52% dividend yield.

The rising share price outpaced the increasing rate of annual dividend hikes, which pushed the current yield, trailing 18% below the company’s own 3.09% average yield over the past five years. However, the Ameren Corporation’s current yield is 26% ahead of the overall Utilities sector’s yield average of  2.0% . Additionally, Ameren’s current yield is also 5.7% higher than the 2.39%% average yield of the company’s peers in the Diversified Utilities industry segment.

Over the past six years, the Ameren Corporation enhanced its total annual payout 20%, which corresponds to an average annual rate of 2.9%. Based on the company’s record of dividend hikes since 2010, investors should expect another dividend hike with the December-2019 payout.

 

7 Good Dividend Stocks to Buy Now: #6

Texas Instruments, Inc. (NASDAQ:TXN)

Texas Instruments’ current quarterly payout amount rose 24% from $0.62 one year ago to the current $0.77 distribution. This new quarterly dividend corresponds to a $3.08 annualized payout and a 2.55% forward dividend yield, which is 5.5% higher than the company’s own 2.42% five-year yield average.

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Additionally, Texas Instruments’ current yield is 143% above the 1.05% average yield of the overall Technology sector, as well as 57% higher than the 1.63% simple average yield of the Broad Line Semiconductor industry segment.

The total annual dividend payout advanced more than 36-fold over the past 16 years. This advancement pace corresponds to an average annual growth rate of more than 25%. While the low dividend payout amounts at the beginning of the streak contributed to the high growth rate, the company still maintained an average annual dividend growth rate of nearly 21% over the last five years.

The company supplemented its dividend income with asset appreciation to deliver a 15% total return over the last year. Additionally, the total returns over the last three and five years were 87% and 184%, respectively.

 

7 Good Dividend Stocks to Buy Now: #5

Cisco Systems, Inc. (NASDAQ:CSCO)

Cisco Systems’ current $0.35 quarterly payout is 6.1% higher than the $0.33 payout from the same period last year. The new quarterly distribution corresponds to a $1.40 annualized dividend and yields 2.77%, which is 6% below Cisco’s own 2.95% five-year average yield.

However, Cisco’s current yield is 140% higher than the 1.05% average yield of the overall Technology sector. Furthermore, Cisco’s current yield is also 430% above the 0.52% simple average yield of the company’s peers in the Networking & Communication Devices industry segment.

Cisco Systems has advanced its total annual dividend amount nearly six-fold since 2011 for an average growth rate of nearly 25% per year. Combined with steady asset appreciation, Cisco rewarded its shareholders with a one-year total return of nearly 24%. Additionally, Cisco also delivered an 83% total return over the last three years and a 131% total return over the last five years.

 

7 Good Dividend Stocks to Buy Now: #4

Delta Air Lines,  Inc. (NYSE:DAL)

 

The company’s current $0.4025 dividend distribution is 15% above the $0.35 quarterly payout from the same period one year ago. The new quarterly distribution is equivalent to an annualized dividend of $1.61 and a 2.8% forward dividend yield. This dividend yield is 47% higher than Delta’s own 1.91% five-year average yield.

Furthermore, Delta’s current yield also outperformed the 2.17% average yield of the entire Services sector by nearly 30%. Also, the current yield is more than twice the 1.31% simple average yield of the Major Airlines industry segment, as well as 55% above the 1.81% average yield of the segment’s only dividend-paying companies.

Delta enhanced its total annual dividend distribution amount nearly seven-fold, since beginning dividend payouts in 2012. That advancement is equivalent to an average annual growth rate of 37.4%. The strong dividend growth combined with asset appreciation for an 11% total return over the last 12 months. Additionally, the three-year and five-year total returns were in excess of 70%.

 

7 Good Dividend Stocks to Buy Now: #3

Sempra Energy (NYSE:SRE)

 

Sempra Energy’s current $0.9675 quarterly dividend payout is 8.2% higher than the $0.895 distribution amount from the same period last year. This new quarterly payout is equivalent to a $3.87 annualized dividend and yields 2.83%, which is 3% higher than the company’s own 2.75% average dividend yield over the past five years.

Furthermore, Sempra Energy’s current yield is more than 40% above the 2.02% average yield of the overall Utilities sector, as well as more than 10% higher than the 2.56% simple average yield of the Gas Utilities industry segment.

Sempra Energy began dividend income distributions more than two decades ago and has enhanced its annual payout since 2005. Over the last 15 consecutive years, Sempra Energy advanced its annual payout four-fold, which corresponds to an average annual growth rate of 9.4%. During that period, the company’s total annual dividend advanced nearly four-fold. This advancement corresponds to an average annual growth rate of 9.4% per year.

The total returns from the combined dividend income and asset appreciations over the previous  one, three and five years reached 23%, 38% and 51%, respectively.

 

7 Good Dividend Stocks to Buy Now: #2

Illinois Tool Works, Inc. (NYSE:ITW)

 

As an S&P 500 component with 53 consecutive annual dividend hikes and a market valuation in excess of 3 billion, the Illinois Tool Works Inc. is one of just 16 Dividend Kings. The company’s current $1.07 quarterly dividend is 7% higher than the previous quarter’s $1.00 payout amount. This new quarterly amount corresponds to a $4.28 annualized distribution and a 2.92% yield, which is 34.5% higher than the company’s own 2.07% five-year yield average.

Additionally, the current 2.92% yield is nearly 130% above the 1.28% simple yield average of the entire Industrial Goods sector, as well as 137% higher than the 1.23% yield average of the Diversified Machinery industry segment. The current yield is also nearly 50% above the 1.96% average yield of the segment’s only dividend-paying companies.

Just over the past two decades of consecutive boosts, the company has enhanced its annual dividend payout nearly 12-fold. This advancement pace is equivalent to an average growth rate of 13.2% per year.

The company’s steady asset appreciation complemented the reliable dividend income for a combined total return of 15.5% over the last year. Additionally, the three-year total return was nearly 37%. Lastly, the shareholders nearly doubled their investment over the last five years with a total return of almost 94%.

 

7 Good Dividend Stocks to Buy Now: #1

PepsiCo, Inc. (NASDAQ:PEP)

PepsiCo has been paying dividends since 1952 and has hiked its annual dividend for nearly five decades, since 1972. Just over the past two decades, PepsiCo enhanced its annual dividend payout more than seven-fold, which corresponds to an average growth rate of 10.4% per year.

PepsiCo’s current $0.955 dividend distribution is almost 3% higher than the $0.928 from the  same period last year. This new payout amount is equivalent to a $3.82 annualized amount and a 2.96% forward dividend yield, which is 7.2% above the company’s own 2.76% average yield over the last five years.

Additionally, PepsiCo’s current yield is also 43% higher than the 2.07% simple average yield of the overall Consumer Goods sector, as well as 62.5% above the 1.82% yield average of all the companies in the Processed & Packaged Goods industry segment.

Combined with robust asset appreciation, PepsiCo’s dividend income rewarded investors with a 20% total return over the trailing 12 months. Furthermore, the shareholders enjoyed a 30% total return over the last three years and a 60% total return over the last five years.

 


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Ned-Piplovic

 

Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

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