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These are 2 of the best dividend companies of all time. Is it too late to invest in them?

Mart Poom
7. 5. 2023
3 min read

Dividend stocks are extremely popular among investors. Companies that are considered extremely stable and resilient stand out even more. And we're going to look at two of them.

Chevron $CVX+0.5%

Chevron is one of the largest oil companies in the world. It was founded in 1879 and is headquartered in San Ramon, California. Chevron operates all major phases of oil and gas exploration, production, refining and distribution. It has extensive operations on every continent, including successful operations in the U.S., Canada, Ecuador, Nigeria and Angola. Chevron produces approximately 2 million barrels of oil equivalent annually.

Chevron is a highly profitable company. No. It generates huge cash flows that allow for high dividends, investment in growth and debt reduction. Chevron's dividend payout is $5.77 per share per year, a 35-year streak of steadily increasing dividend payments. Chevron still has plenty of free cash to fund both growth investments and dividend payments, giving it good prospects for further dividend growth.

With a dividend yield of 3.61%, the total return on equity is 9-10%. The valuation is not too low, but Chevron still has significant growth potential.

The combination of a strong financial position, stable cash flow, rising dividends, and good growth potential makes Chevron a top dividend stock. Chevron can serve as the foundation of a quality dividend portfolio due to its ability to generate cash, grow dividends and return value to investors. Chevron thus represents a classic example of a reliable dividend play with growth ambitions. Of course, it is important to keep in mind that it is heavily dependent on the price of oil.

3M $MM-0.3%

3M is an American multinational company that was founded in 1902 and is one of the largest manufacturers of industrial, consumer and medical products. It is headquartered in Minnesota, U.S. 3M has a wide range of proprietary technologies and patents that it applies in more than 60 business segments. Some of its best-known products include Post-it, Scotchgard, N95 respirators, Thinsulate, and Scotch tape. In total, 3M manufactures over 55,000 different products.

3M has a global presence with 96,000 employees and annual sales of $33.5 billion. More than half of its sales come from abroad, with the US, China and Germany being the most important markets.

3M is a very stable and profitable company. The operating margin is around 16%. It generates strong cash flow, which enables investment in research and development and dividend payments. It has been paying dividends since 1912 and its rate has been growing over the long term.

The dividend is growing steadily. Source

3M shares trade on the New York Stock Exchange under the symbol MMM. They are stable in value, have good liquidity and have been growing over the long term. 3M's strengths are its technological leadership, global footprint, broad product portfolio diversification, strong financial position and stable performance. Weaknesses are dependence on the conjuncture of certain industries and difficulties in innovation.

C is your favourite dividend stock?

Disclaimer: This is by no means an investment recommendation. It 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.

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