The 30 stocks among the Dow Jones Industrial Average 2 Minute (Dow Jones Indices:.DJI) aren’t just the leaders in their respective industries. They also pay out billions of dollars in dividends to their shareholders, making them some of the most sought-after dividend stocks in the market.
But even better than getting reliable income from a stock is getting growing amounts of income year after year. With so many Dow stocks having long streaks of raising their dividends on an annual basis, a good number of them have made it a habit to implement their higher payouts at the same time every year. Let’s look at the stocks in the Dow with long streaks of annual dividend increases that are due to make healthier payments to their shareholders in the near future.
The Procter & Gamble Company (NYSE:PG)
With two dozen billion-dollar brands, The Procter & Gamble Company (NYSE:PG) is a global powerhouse, selling well-known consumer products to billions of households around the world. Even though the company has been under fire lately from activist investor Bill Ackman and others for failing to keep up its history of innovation and adept business execution, it has gotten through tough periods before in its 56-year history of raising dividends annually.
Last year, The Procter & Gamble Company (NYSE:PG) announced its 7% dividend increase on April 13, around the same time as it has boosted payouts in past years. A boost in its quarterly dividend to an even $0.60 per share would be consistent with that past rise, raising the stock’s yield to 3.1% and also increasing confidence that the company is turning things around.
Exxon Mobil Corporation (NYSE:XOM)
Exxon Mobil Corporation (NYSE:XOM) is the largest company in the Dow by market cap, and it also became the world’s largest dividend payer last year, when it boosted its payout by a whopping 21%. What’s particularly impressive is that at the same time that Exxon makes such substantial dividend payments, the amount it spends on share buybacks is twice as big as it spends in cash returned directly to shareholders.
Last year’s big dividend announcement came on April 25, marking its 30th consecutive annual increase, and that timing was consistent with past years’ dividend increases. Expecting a repeat of last year’s boost of $0.10 per share is probably too much to hope for, given a history of more modest $0.02 and $0.03 increases, but with a payout ratio of just 22%, Exxon Mobil Corporation (NYSE:XOM) has room to give shareholders whatever size of raise it thinks is most appropriate.
Chevron Corporation (NYSE:CVX)
Chevron Corporation (NYSE:CVX) is No. 2 to Exxon in the U.S., but it still has an impressive record of 25 straight annual dividend increases. It also pays a higher yield than Exxon, with Chevron’s 3% yield beating out its larger rival by half a percentage point.