Friday, January 23, 2015


Recently I read an article about 16 dividend stocks with a history of increasing dividends for over 50 years.  That in itself is quite impressive, but I decided to dig a little deeper to see which stocks my be the best bargains and best positioned to continue growing dividends.  I found 3 that I think are worth considering:

1.  Emerson Electric (EMR)  Emerson has a history of raising dividends for the past 57 years.  With a recent price to earnings of 19.6, the stock does not seem outrageously priced in a high P/E market.  They have a dividend yield of 3.14% with a current dividend of $1.88 per year.  Current earnings are $3.03, leaving them plenty of room to continue boosting dividends.

2.  Johnson & Johnson (JNJ)  A solid dividend performer, JNJ has a history of raising their dividend for 52 years.  Their current P/E is only 17.2 and they sport a dividend yield of 2.70%.  With an annualized dividend of $2.80 and current earnings of $5.70 it seems they'll be able to continue raising dividends for quite some time.

3.  Dover Corporation (DOV)  Dover has been increasing dividends every year for the past 59 years!  Not only that, but they have the lowest P/E of the three at 14.6.  Their current dividend yield of 2.22% may not sound like much, but with a current annualized dividend of $1.60 per share and earnings of $4.77 per share, it looks like they might be the best buy of the three.

In the interests of disclosure, I do not own any of the above stocks.  However, were I looking to add new positions to my portfolio, they'd certainly warrant a closer look.

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