A dual approach of growth and the high dividend concept! The hidden power of the top ten "Dividend Kings" in the usa, with a year-to-date increase of over 50%.
高配当株は投資家にとって魅力的な存在であり、特に長期間にわたり連続増配を行っている銘柄は一層注目される。中でも、50年以上連続で増配を続けている「配当王This not only demonstrates a commitment to shareholder returns, but also indicates the ability of the company to adapt to the changing times and to continue to prosper.
Stocks that have increased dividends for more than 25 consecutive years are called "dividend aristocrats", while those that have increased dividends for more than 50 consecutive years are called "dividend kings".
Dividend kings have survived through various eras such as inflation, commodity booms and busts, rising interest rates, economic downturns, market crashes, changing investor preferences, and technological advancements. Companies that have maintained regular dividend increases while overcoming such diverse environments are highly valued. In the face of an approaching interest rate cut cycle, high-dividend stocks are attracting attention due to their unique income characteristics. In a low interest rate environment, high-dividend stocks offer investors stable cash flow and relatively stable returns, becoming a choice that can continue to win in the long term by overcoming cycles.
Tracking the S&P High Dividend Aristocrats Index $Spdr Series Trust Spdr Portfolio S&P 500 High Dividend Etf (SPYD.US)$IsUp more than 17% year-to-daterising, $S&P 500 Index (.SPX.US)$and $iShares 20+ Year Treasury Bond ETF (TLT.US)$Recording a performance that exceeds.
According to the data from Simply Safe Dividends, in 202453 companiesentered the dividend aristocrats list.
However, even if becoming a dividend aristocrat, it does not necessarily outperform the market. "Focusing too much on dividends can reduce reinvestment for future business expansion and potentially suppress stock price appreciation," said Michael Ashley Schulman, Chief Investment Officer at Running Point Capital.
Dividend aristocrats do not necessarily guarantee safe and growing income. The dividend aristocrats list includessurvivorship biasexists, as investors only look at stocks that have been increasing dividends every year. The most reliable dividend aristocrats maintain strong financial health, provide services within stable markets, and have characteristics of resilience in economic downturns. Therefore,Increasing dividends every yearnot only continue to increase, but also outperform the marketto achieve superior performance in the marketand strengthen their financial positionIt is important to select dividend aristocrats with a strong financial position. These dividend aristocrats are even more attractive to investors seeking higher returns.Year-end surge of over 50%! What are the top 10 USA stocks that combine high dividends and growth?
has surged by over 50% during the year. Who are the top 10 US stocks combining high dividends and growth? $Walmart (WMT.US)$has shown a year-to-date increase51%The US manufacturing giant $3M (MMM.US)$and the tobacco giant $Altria (MO.US)$Also,over 40%The US consumer goods giant $Colgate-Palmolive (CL.US)$and the insurance giant $Cincinnati Financial (CINF.US)$Pharmaceutical giant $AbbVie (ABBV.US)$Isincrease of over 30%.major U.S. manufacturing company $Parker Hannifin (PH.US)$world's leading hygiene products giant $Kimberly-Clark (KMB.US)$world's leading daily chemical products giant $Procter & Gamble (PG.US)$Beverage giant, $Coca-Cola (KO.US)$Also,Over 20%rose. It is noteworthy that, with the exception of 3M,These dividend kings have all reached new record highs this year..
● Walmart has had a breakthrough year
$Walmart (WMT.US)$and is the best performing dividend stock in the Dow average for 2024, year-to-dateYear-to-date51%It is rising. On the other hand, the Dow average has remained at about 9%.about 9%has remained at 9%.
On September 12, Walmartreached a new all-time high,On the other hand, $Dollar General (DG.US)$remains at a 5-year low. While companies relying on discount stores and discretionary consumption struggle, Walmart continues to prosper. When companies are doing well and competitors across the industry are performing poorly, it is usually the case thatEvidence that the management has come up with a clever strategy.Furthermore, Walmart has an excellent business model and is efficiently allocating new capital, with prospects of achieving record adjusted profits despite a challenging business environment.
"Walmart is a typical example of an old-economy company that has skillfully transformed, with the results being reflected in profitability, revenue, and growth," said Nancy Tengler, CEO and Chief Investment Officer of Raffa, Tengler, and Investments. "I continue to highly value Walmart as a full-fledged, omni-channel technology-driven retailer in the retail trade industry."
●Coca-Cola is breaking free from its underperformance and outperforming major indices.
$Coca-Cola (KO.US)$Since the start of this yearhas risen by 23%, butIt's only a 32% increase over the past 5 years.As the king of the beverage industry, the company has been striving for profitability improvement despite the slowdown in revenue growth. However, its reliance on the foodservice industry (restaurants, sports events, concerts, etc.) has led to a partial stagnation in growth due to the pandemic. Only recently has it started to return to a growth trajectory.But it has recently begun to return to a growth trajectory.However, overall, the current revenue and profits are at roughly the same level as in the early 2010s. Nevertheless, the stock price has increased by 170% since 2010.
However, Coca-Cola's valuation is still not that high, and the forecasted price-to-earnings ratio (PER) is 25.4.It is still not that high.The forecasted price-to-earnings ratio (PER) is25.4In the consensus forecast, Short-term strong earnings growth is expected. Furthermore, the company's beverage portfolio seems to be well-positioned for growth due to operational improvements and the integration of recent acquisitions.
●P&G is stable both in stock price and its core business.
While Walmart is having a breakout year and Coca-Cola is recovering from poor performance to outperform major indices in 2024, $Procter & Gamble (PG.US)$IsStable performance in both stock price and core business. を上げている。P&Gには、経済サイクルに関係なく業績を維持できるトップブランドのポートフォリオがある。消費者が支出に慎重である中で、価格決定力を維持している点は特筆すべきだ。P&Gは、カテゴリーごとに異なる価格帯の複数のブランドを持つことで、利益を得ている。過去5年間で、同社はウォルマートやコカ・コーラよりも速いペースで株式数を減少させ、配当を引き上げてきた。予想PERは24.6倍である。
In addition to the above stocks, for investors who are not good at stock picking, a more stable and secure investment method $Schwab US Dividend Equity ETF (SCHD.US)$、 $Ishares Trust Ishares Core High Dividend (HDV.US)$、 $Ishares Select Dividend ETF (DVY.US)$、 $Spdr S&P Dividend Etf (SDY.US)$、 $Vanguard High Dividend Yield ETF (VYM.US)$、 $Spdr Series Trust Spdr Portfolio S&P 500 High Dividend Etf (SPYD.US)$、 $Vanguard International High Dividend Yield Etf (VYMI.US)$such as High dividend concept etf.Exists.
Which sectors are the "dividend kings"?
Dividend kings are mainly concentrated in more stable sectors.Capital goods、Necessities of life、utilities industryThese excellent companies account forabout two thirdsof all. Below are the dividend kings for each sector and their consecutive years of dividend growth.
As you can see, the dividend kings areThere are no stocks from the information technology sector included.The sector is the largest component sector of the S&P 500 index.
Furthermore, in an approaching rate cut cycle, high-dividend stocks tend to show good performance. In 2023, dividend stocks faced a period of underperformance due to the Federal Reserve's continuous rate hikes. However, there are also expectations that the outlook for income investments may change in 2024. Analysts at Lord Abbett predict that companies with strong balance sheets, good cash flow, and sustainable dividends will perform better amid economic slowdown.
Alternative to fixed income investments:When interest rates decline, the returns of traditional fixed income investments (such as bonds) also decrease, making high-dividend stocks relatively attractive and offering higher cash returns.
Investor preference:During periods of slowing economic growth or increased uncertainty, investors tend to seek more stable sources of income. High-dividend stocks are usually preferred by investors as they provide stable cash flow and are supplied by mature companies with established business models.
Defensive characteristics:High-dividend stocks often have defensive characteristics and are often chosen from industries that can maintain stable dividends even during economic downturns (such as utilities and essential consumer goods industries).
Source: moomoo, Simply Safe Dividends, msn
This article is partially translated using auto-translation.
ーmoomoo News Sherry
This article is partially translated using auto-translation.
ーmoomoo News Sherry
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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