3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 20 Consecutive Years
2024-09-19 14:30:00
When scanning the market for dividend stocks, you’re sure to notice companies with high yields. But it’s arguably more impressive when companies pay and raise their dividends every year no matter what the economy is doing. Consistent dividend raises often coincide with financial health and steady earnings growth.
Emerson Electric (NYSE: EMR), NextEra Energy (NYSE: NEE), and Clorox (NYSE: CLX) don’t have mind-numbingly high yields. But all three companies are well on their way to extending their streak of dividend raises for decades to come.
Here’s why all three dividend stocks are worth buying now.
It took a few years and multiple operational blunders, but Clorox has finally found its footing. Management expects gross margins to tick up another 100 basis points in fiscal 2025. It also expects $6.55 to $6.80 in adjusted EPS. At the midpoint, that would be an 8% increase from fiscal 2024 and would give Clorox a forward price-to-earnings ratio of 24.9 on an adjusted basis. That’s not dirt cheap, but it’s reasonable if Clorox can continue high-single-digit earnings growth.
Clorox is known for its flagship cleaning products, but the company owns a variety of brands across categories including cleaning, home care, wellness, and lifestyle. You may be surprised to learn that Clorox owns Brita, Burt’s Bees, Glad, Hidden Valley, Kingsford, Pine-Sol, and dozens of other brands.
When Clorox is at the top of its game, it is a diversified conglomerate with high-margin products that lead or are close to leading their categories. Clorox hasn’t been at that level for some time, but it’s getting there again, making now a good time to scoop up shares of this high-quality dividend stock.
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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric and NextEra Energy. The Motley Fool has a disclosure policy.
3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 20 Consecutive Years was originally published by The Motley Fool
