The Procter & Gamble Company (PG), Lowe’s Companies, Inc. (LOW), Target Corporation (TGT): Is It Last Call for Dividend-Paying Stocks?

Lowe’s Companies, Inc. (NYSE:LOW) enormous dependence on the housing industry hurt it during the recent recession. But the company, which caters to contractors, DIY-ers, and do-it-for-me types, is benefiting greatly from the current housing market recovery.

Another example is Target Corporation (NYSE:TGT). This friend to the trendy consumer has hiked its dividend for 45 consecutive years. The stock pays a 2.1% dividend yield, and Target’s payout ratio is 32%. The company has significantly increased its dividend over the past five years. In fact, Target Corporation (NYSE:TGT) raised its dividend 125% during the past five years. No bond can give you that kind of pay raise.

Target Corporation (NYSE:TGT) recently branched out into the Canadian market. The large capital investments required will initially reduce Target’s cash flow. But over the long-term, the retailer will likely enjoy improved cash flows as the Canadian stores become more established.

Final Foolish thoughts
Interest rates won’t rise meteorically overnight. If you own high-quality dividend-paying stocks, don’t let fear drive you to sell a perfectly good investment. Keep the end goal — reliable and rising income for years to come — in mind.

The article Is It Last Call for Dividend-Paying Stocks? originally appeared on Fool.com.

Fool contributor Nicole Seghetti owns shares of Procter & Gamble and Target. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Lowe’s and Procter & Gamble.

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