Exxon Mobil Corporation (XOM), The Coca-Cola Company (KO): 3 Indestructible Dividend Companies for Times of Uncertainty

Exxon Mobil Corporation (NYSE:XOM) is not the alternative with the highest growth prospects in the industry, the company is already huge, and size can be a limitation for growth. Besides, Exxon Mobil Corporation (NYSE:XOM) puts quality over quantity when it comes to developing new projects, so it sometimes bypasses projects that more aggressive competitors undertake.

On the other hand, this conservativeness has its advantages, Exxon Mobil Corporation (NYSE:XOM) is one of the few remaining corporations in the world which has its debt rated Aaa and AAA by Moody’s and Standard & Poor’s, respectively. Not that you should put too much trust on credit rating agencies, but a good rating is certainly better than a bad one, and it also means lower financing costs, a big advantage in a capital intensive business.

Exxon Mobil Corporation (NYSE:XOM) pays a 2.5% dividend yield, and it has consecutively increased its dividend payments for the last 30 years.

A Clean and Shiny Dividend

The company owns a strong portfolio of leading brands, 25 of which generate more than $1 billion in annual global sales. Tide laundry detergent, Charmin toilet paper, and Pantene shampoo, are just a few examples. Procter has been “cleaning up the house” in order to reinvigorate growth and increase profitability lately: management has launched an initiative to reduce $10 billion in expenses and double its presence in emerging markets with new facilities in countries like China, Brazil, Nigeria, and Indonesia.

Procter and Gamble has been paying a dividend for 123 consecutive years, and last year marked the 56th consecutive year that the Company has increased its payments with a 7% raise. The stock is currently paying a 2.9% dividend yield.

Bottom Line

There is no such thing as the best stock for everyone, it`s always about finding the right investment according to your own necessities and strategic approach. In case you are feeling concerned about what the future holds, or if you simply believe in buying companies with rock solid competitive positions and an immaculate track record of dividend increases, these three indestructible stocks may be convenient alternatives for your portfolio.

The article 3 Indestructible Dividend Companies for Times of Uncertainty originally appeared on Fool.com is written by Andrés Cardenal.

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