📈 Dividend stocks are a solid choice even in times of rising technology!
Recently, many investors have focused on high-growth technology companies, especially because of the artificial intelligence boom. 📊
However, new data suggests inflation is easing, which could lead to a cut in interest rates by the Federal Reserve. The move could reignite interest in dividend stocks, which have long been popular for their stable yields. Research by Columbia Threadneedle Investments has shown that dividend growth stocks outperform other stocks just in time for rate cuts. 📉
The following companies are favorites among top money managers and billionaires who appreciate their strong balance sheets and long-term dividend growth. What are your favorites?
🥤 Coca-Cola $KO
Coca-Cola
KOCoca-Cola Co. has raised its dividend for an incredible 62 years in a row. Its resilient business makes this stock a defensive play in tough times. The stock's yield as of July 11, 2024 is approximately 3 %. Well-known billionaires who have stakes in this beverage company include Warren Buffett, Ken Griffin, Ray Dalio and Steve Cohen. The company continues to dominate the market, with year-over-year sales growth of 4,1 % over the past year, well above the beverage industry average.
🌍 Chevron $CVX
Chevron
CVXChevron boasts more than 4% dividend yield and 36 years of uninterrupted dividend growth. Warren Buffett is the oil company's largest shareholder, owning $19.4 billion worth of shares . Chevron is known for its strong cash position and return of value to shareholders through buybacks and dividends. Last year, the company announced a $75 billion share buyback plan , bolstering its appeal among investors.
🛢️Exxon Mobil $XOM-0.5%
Exxon Mobil
XOMExxon Mobil offers 3,3% dividend yield and more than40 years of dividend growth. Billionaire Ken Fisher holds a $3.1 billion stake .ExxonMobil recently completed its $60 billion acquisition of Pioneer Natural Resources, which is expected to help lower the cost of oil and gas production. This transaction reinforces the company's strong cash position and its outlook for future growth.
🧴Procter& Gamble $PG
Procter & Gamble, the well-known consumer goods maker, has raised its dividend for 68 years in a row. Billionaires with stakes in the company include Ken Fisher, Ray Dalio, D.E. Shaw, Israel Englander and Cliff Asness. The company's stock has risen by about 11 %. With strong brands like Gillette, Old Spice and Pampers,Procter & Gamble maintains a strong pricing position despite inflationary pressures. Wall Street expects annual earnings per share growth over the next two years of 6 to 7%.
💊Johnson& Johnson $JNJ
Johnson & Johnson boasts 62 years of consecutive dividend increases. Major billionaire hedge funds, including Fisher Asset Management, Bridgewater Associates and AQR Capital, hold stakes in the company. Despite the stock's decline this year by about 6 % and lawsuits that have affected their performance, analysts believe JNJ's diversified income stream and strong cash position make it a safe long-term investment.
💡Even though technology companies are currently shining, dividend stocks still represent a stable and profitable option for investors looking for reliable, long-term income. With interest rates dropping, these companies are quite interesting! 🚀💰
What is your opinion on these dividend kings and what dividend companies do you have in your portfolio?
These are quality companies with decent dividends. I don't own either on this list, but I'm still thinking about $CVX-1.7% stock.