3 companies that have been paying a dividend for over 100 years
Dividend companies can lure in great prospects and a high dividend. But this is often risky. Many investors are therefore rather cautious and focus on the past instead of the future. The past can tell us a lot. For example, if a company has been paying a dividend for over 100 years!
Today, we're going to take a look at 3 companies that have an absolutely incredible history!
Chubb Limited $CB-0.4% is an American multinational insurance company based in Switzerland. The company provides commercial and personal insurance such as property, liability, health insurance, travel insurance and more. Chubb was founded in 1882 and today has more than 31,000 employees in 54 countries.
One of the main advantages of investing in Chubb is its strong financial position and high level of financial stability rating. The company has a high level of capital adequacy and has been rated A++ (Superior) by A.M. Best. This means that the company has very strong financial stability and the ability to meet its obligations to its clients and shareholders.
Chubb also prides itself on its excellent customer service and ability to offer a wide range of products and services to meet the diverse needs of its clients. The company also has an extensive global network and presence in many geographic regions, which allows it to better adapt to local conditions and client needs.
Chubb has a long history of paying dividends. The original company, which later became part of Chubb, was founded in 1882 and the company has been paying dividends to its shareholders ever since. Over the years, the amount of dividends and the regularity of their payment may have varied depending on the company's financial performance and other factors.
In 2016, ACE Limited completed the acquisition of Chubb, which resulted in the Company changing its name to Chubb Limited. However, even after this change, Chubb continues to pay dividends to its shareholders.
CB is liked by analysts due to its cheap valuation, strong distribution channels and reputable brand. Although it fell short of expectations in 1Q23, underlying business trends were better than originally anticipated. In addition, CB's diverse product mix and focus on disciplined underwriting should contribute to the company's ability to consistently post strong underwriting margins even as commercial insurance prices continue to decline. The company's international expansion, particularly in Asia, and the acquisition of Cigna also provide promising growth prospects.
PPG Industries $PPG+1.5%
PPG is a U.S. company that specializes in the manufacture and sale of coatings, specialty chemicals and materials for the industrial and consumer markets. The company was founded in 1883 and today has over 46,000 employees in 70 countries.
As for PPG Industries' dividend history, the company has a long history of paying dividends. For the past 50 years, PPG has paid a dividend to its shareholders every year, and has increased the dividend amount each year for an average of 48 years. It currently pays a dividend of 1.78%, which is fully covered. The payout ratio is 45%.
PPG Industries has struggled over the years to maintain a high level of dividend yield for its shareholders, which can be attractive to investors, especially those looking for regular investment income. PPG Industries is also investing in its growth and development, which could lead to further increases in dividend yield in the future.
Over the past century, PPG has evolved into a number of industrial applications including paints, solvents, adhesives and even fiberglass. This diverse product line provides a diversified revenue stream that supports the income stream for shareholders. Indeed, their business is cyclical and linked to wider industrial demand. However, PPG is one of a handful of dividend stocks whose payouts have survived the Great Depression and two world wars. That should give investors peace of mind.
PPG Industries has had a strong start to FY23 and its Q1 FY23 results were better than expected. Analysts expect a lower impact from freight inflation, which will lead to higher margins and earnings. However, there are also risks associated with the weak macro environment and potential breakpoints in pricing.
Procter & Gamble $PG-0.6%
Procter & Gamble is one of the world's largest consumer products conglomerates headquartered in Cincinnati, Ohio, USA. The company produces a wide range of consumer products, including laundry detergents, cosmetics, baby products, bottled water and health products. Some of their best known brands are Ariel, Pampers, Tide, Gillette, Oral-B, Head & Shoulders, Old Spice and Pantene.
Procter & Gamble is one of the largest and highest quality dividend titles in the world. The company has paid a regular quarterly dividend for 132 years without interruption and has increased it every year for 66 consecutive years. It is the only company in the Dow Jones Industrial Average with an unbroken streak of dividend increases.
The current dividend yield is approximately 2.55%. While this is not an extremely high number, P&G is considered a dividend champion. Procter & Gamble has steady cash flow generated from strong brands, which allows it to regularly raise dividends even during economic downturns. Moreover, the company is strongly dividend-oriented. The company's dividend policy plan calls for P&G to increase its dividend by 5% to 10% annually, which would allow it to maintain its "dividend champion" status in the future.
PG stock is not a cheap stock, especially given the earnings growth on offer. The company expects to incur $3.5 billion in additional costs associated with higher commodity, material, packaging and currency costs by the end of June 2023. Management believes the company could achieve steady earnings per share growth of up to 4% this year (this is below its long-term target of mid-to-high single-digit earnings growth).
Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.