Colgate-Palmolive Company (CL), Emerson Electric Co. (EMR): 5 Dividend Growth Companies For A Strong Portfolio Foundation

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Altogether, the above stocks collectively offer a strong foundation for a growing dividend portfolio. With access to relatively defensive market sectors such as consumer staples, industrial technologies, food & beverages, medical technologies, and hospitality services, this portfolio spreads the risk across several sectors of the broad economy. At the same time, it provides a historically consistent growth in the income component that has endured for decades.

With such an underlying set of companies, the portfolio they help comprise maintains an optimal amount of stable growth that investors can confidently rely upon. This allows for the investor to introduce further customization by adding or detracting risk through additional investments. Only by creating a strong foundation can the tallest structure achieve its height. In the same sense for the markets, the greatest portfolios are those that can be structured around the firm trend of increasing returns.

Kevin Quon has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Emerson Electric Co., and Sysco. The Motley Fool owns shares of Medtronic.

The article 5 Dividend Growth Companies For A Strong Portfolio Foundation originally appeared on Fool.com.

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