💸 50 Years of Dividend Raises
Today is Dividend Day.
In this series, I will teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ 50 Years of Dividend Raises
Dividend Kings are companies that have increased their dividends for at least 50 consecutive years.
FinanceCharts ranked all Dividend Kings by dividend yield as seen below:
2️⃣ The Magic of Compounding
Coca-Cola is a Dividend King.
Holding these companies for a long time can produce amazing returns.
If you bought a single share of Coke in the 1919 IPO, you’d have more than 9,000 shares today!
Your investment would have gone from $40 to almost $10 million today!
3️⃣ An investing quote
Seth Klarman is known for his value investing approach and as the founder of the Baupost Group.
He is widely respected for his book "Margin of Safety," which outlines his investment philosophy and principles.
“The single greatest edge an investor can have is a long-term orientation” – Seth Klarman
4️⃣ All Dividend Kings
Here are the Dividend Kings grouped by sector. It lists how many years they’ve increased their dividend payments.
Click on the picture to access a large, high-quality image.
5️⃣ Example of a dividend stock
Automatic Data Processing is set to become a Dividend King.
They raised the dividend for the 49th time in 2023.
ADP makes money by providing payroll processing, benefits administration, and HR management to businesses and organizations, charging them a fee for these services.
- Profit Margin: 19.5%
- Forward PE: 28.7x
- Dividend Yield: 1.9%
- Payout Ratio: 44.7%
Source: Finchat
That’s it for today
In case you missed it:
Used sources
- Interactive Brokers: Portfolio data and executing all transactions
- Finchat: Financial data