Who doesn’t love receiving a regular flow of generous dividend payments?
In a 2016 article titled ‘Why Dividends Matter’, Christopher F. Poch, a Morgan Stanley Private Wealth Advisor, concluded that “Historically, dividend-paying stocks have outpaced the performance of non-dividend paying stocks – and have done so with lower volatility”.
Indeed, dividends are especially useful during market downturns, as they can offset a company’s share price decline. More generally, they provide precious cash flow that can be used to invest in other assets or sustain your lifestyle.
This article will present five of the world’s highest-quality dividend stocks that investors should consider buying to protect their portfolios from the current market turbulence.
Coca-ColaCoca-Cola is the undisputed Dividend King of all dividend stocks. In writing, Coca-Cola stock offers a seemingly negligible 2.80% dividend yield. But don’t be fooled by the low yield: Coca-Cola’s management has an unrivalled track record of dividend increases.
Coca-Cola shareholders have been handsomely rewarded for their continued patience, as the company boasts 59 years of uninterrupted dividend growth.
Still, doubt the quality of this investment. Ask Warren Buffett what he thinks: Berkshire Hathaway, the Oracle of Omaha’s holding company, generates more than $672 million in Coca-Cola dividends yearly. Cha-ching!
- Realty Income
Realty Income is another Dividend King with a dividend history that is difficult to compete with. The triple-net lease REIT has a current dividend yield of 4.18% and more than 25 years of consistent dividend growth. In total, Realty Income has paid dividends to its shareholders for more than 50 consecutive years.
Are you looking for a high-quality dividend-paying energy stock you can buy and hold for the next decade? Enbridge may be the stock you are looking for.
With the current energy crisis spooking fuel consumers, Enbridge shareholders are looking forward to plenty more dividend income in the coming years. While Enbridge lowered its dividend once in 2011, it has consistently paid a dividend for the past 67 years. Very few companies in the world can say that.
Sanofi is a French pharmaceutical company in the Euro Stoxx 50 market index. With more than 36 billion euros in revenues in 2020, it is one of the largest healthcare firms in the world.
Given the increasing interest in healthcare, Sanofi investors should expect continued dividend growth over the coming years. It is also one of the most reliable dividend-paying stocks investors can purchase. In February 2022, the board of directors proposed a dividend of 3.33 euros per share, marking the 28th consecutive year of dividend growth.
Unilever is a British multinational consumer goods conglomerate whose products include food, cleaning agents, and beauty products. If you open your pantry, there is a high chance of finding some of its products.
Not only is Unilever an agribusiness heavyweight, but it is also one of the world’s most reliable dividend payers. With 32 years of dividend payments under its belt and an 880% increase in its stock price since 1989, the firm feeds both investors’ nutritional and financial appetites.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.