McDonald’s Corporation (MCD), Wells Fargo & Co (WFC), Exxon Mobil Corporation (XOM): Three High Quality Leaders With Strong Dividend Growth Prospects

Page 1 of 2

Industry leaders with indestructible competitive strengths are the way to go when searching for companies providing soundness and reliability for your portfolio. Add a growing dividend to the equation, and things become even more interesting for investors: cash flow distributions provide not only regular income, but also transparency on the company´s fundamental quality.

Wells Fargo & Co (NYSE:WFC)

When it comes to the big U.S. banks, no other company has the same level of quality as Wells Fargo & Co (NYSE:WFC). The bank has a simple and straightforward business model: it loans money to deserving clients as opposed to investing in complex derivatives or making low quality loans in the search for a few extra dollars in short term profits.

Thanks to this commonsense approach to the business, Wells Fargo & Co (NYSE:WFC) avoided the expensive and embarrassing mistakes than many of its competitors committed over the last years, and the company has capitalized on its financial strength to make opportunistic acquisitions during rocky times. The purchase of Wachovia back in 2008 provided a big boost to Wells Fargo & Co (NYSE:WFC)´s national footprint, and it positioned the bank as an undisputed leader in key areas like mortgage lending.

Interest rate volatility may create some uncertainty regarding demand for loans in the middle term, but the company will benefit from a recovering real estate market in a big way over the next few years. Wells Fargo & Co (NYSE:WFC) pays a 2.8% dividend yield; considering the company´s financial strength and long term growth prospects, investors have good reason to expect growing dividends from this bank for year to come.

The energy industry is always exposed to several kinds of risks, including geopolitical factors, disruptions to production and fluctuating commodity prices among other things. But Exxon Mobil Corporation (NYSE:XOM) stands out from other integrated energy producers due to its superior profitability and efficiently integrated operations.

After the acquisition of XTO in 2009, Exxon Mobil Corporation (NYSE:XOM) solidified itself as a major player in the natural gas industry. Low gas prices have been a drag on profitability in the last few years, but the company has gained plenty of exposure to a business with promising growth prospects in the middle term. Besides, diversification between oil and gas production reduces the risks coming from price fluctuations.

The company´s financial strength is out of the ordinary; Exxon Mobil Corporation (NYSE:XOM) is one of the last remaining AAA rated firms in the world, and it has an enviable track record of consistent free cash flow generation through the ups and downs of the economic cycle.  The company pays a 2.7% dividend yield, and the payout ratio is at a very sustainable 23% of earnings, which leaves ample room for dividend increases in the future.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!