Three Profit Dividend Titans Continuously Boosting Their Distributions for an Accumulated 165 Years
Looking for dividend stocks with impressive track records? Look no further than Target (TGT), Hormel Foods (HRL), and Abbott Laboratories (ABT). These heavyweight dividend growers have consistently increased their payouts for over 50 consecutive years, combined totalling an astounding 165 years of increases!
Let's dive into why these stocks are worthy additions to your investment portfolio.
Target: 53 years and counting
In June 2024, Target announced a modest 1.8% dividend increase, marking its 53rd consecutive year of payout boosts. While the percentage might seem small, Target is known for being extra generous in booming market conditions. In 2021, sales soared due to pandemic demand, resulting in a gigantic 32% dividend hike. In the past five years, dividends have skyrocketed by 70%.
Why invest in Target now? The current economic climate may not be shining its brightest for Target as consumers scale back on discretionary spending due to inflation. But, with a solid 2.9% yield, a stingy payout ratio of 45%, and a meagre price-to-earnings ratio of 14, Target is a superior option in a market chock-full of competitors.
Hormel Foods: 59 years of triumph
Leading the pack is Hormel Foods, with its jaw-dropping 59-year run of upward-trending dividends. In November 2024, the company announced a 3% increase to its dividend, maintaining its streak. Known for iconic brands like SPAM, Planters, and Skippy, Hormel generated a notable 25% dividend growth over the past five years, with an average yearly increase of 5%.
With a payout ratio of 78%, Hormel still has plenty of room for further dividend uplifts. Meanwhile, the yield currently stands at a generous 3.7%, trouncing the S&P 500 average of just 1.3%.
Abbott Laboratories: 53 years of unwavering consistency
Last, but certainly not least, healthcare heavyweight Abbott Laboratories has threaded its way to 53 years of dividend growth. Its most recent boost, a generous 7%, was announced just this month. Similarly to Target, the lucrative dividend increase marked the stock's 53rd consecutive year of payout increases.
Boasting a yield of 2.1%, Abbott is an excellent pick for investors keen on diversifying their portfolios with stock options in the rapidly expanding healthcare sector.
Now, let's take a gander at some enlightening details to enhance your understanding of these companies.
Target: The Omnichannel King
- Strong omnichannel strategy with convenience offerings, such as same-day delivery for loyalty members;
- Lucrative in-store brand partnerships, including Ulta Beauty, which boost revenue opportunities.
Hormel Foods: A Yielding Machine?
- High payout ratio, which could raise concerns surrounding future earnings growth;
- ROE predictions demonstrate a potential rise, which may spur dividend hikes.
Abbott Laboratories: The Diversified Colossus
- Strong organic sales growth in areas like Medical Devices;
- A diverse product portfolio that includes pharmaceuticals and medical devices, ensuring steady growth prospects.
In conclusion, these three Dividend Kings—Target, Hormel Foods, and Abbott Laboratories—offer attractive yields, impressive track records of continued growth, and an abundance of long-term stability:
- Target: 53 years of growth, a scintillating 2.9% yield, and a reasonable payout ratio;
- Hormel Foods: 59 years of increases, a generous divisional growth history, and a delightful 3.7% yield;
- Abbott Laboratories: 53 years of prowess, a motivationally high 2.1% dividend, and a healthy long-term performance.
- For investors seeking dividend stocks with impressive longevity, Target (TGT), Hormel Foods (HRL), and Abbott Laboratories (ABT) are worth considering, having collectively achieved 165 years of dividend increases.
- Target's 1.8% dividend increase in June 2024 marked its 53rd consecutive year of payout boosts, making it a solid option despite market challenges due to its 2.9% yield, low payout ratio, and affordable price-to-earnings ratio.
- Hormel Foods holds the record with 59 consecutive years of dividend increases, generating a remarkable 25% dividend growth over the past five years and offering a generous 3.7% yield, surpassing the S&P 500 average.
- Abbott Laboratories, with 53 years of dividend growth, recently announced a 7% increase, boasting a 2.1% yield and a diverse portfolio that includes pharmaceuticals and medical devices, making it an appealing option for investors looking to diversify.
