3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 40 Consecutive Years

Core Insights - Companies like Sherwin-Williams, McDonald's, and Clorox are recognized for their long-term dividend growth, making them attractive for passive income investors [2][15]. Sherwin-Williams - Sherwin-Williams has been included in the Dow Jones Industrial Average, highlighting its consistent performance and diverse revenue streams [3]. - The company operates through three segments: Paint Stores Group (57% of revenue), Performance Coatings Group (29%), and Consumer Brands Group (14%) [3][5]. - The Paint Stores Group primarily serves the U.S. market, while the Performance Coatings Group focuses on industrial clients [4]. - Sherwin-Williams has a strong operating margin across its segments, with 22% for Paint Stores, 21% for Consumer Brands, and 18% for Performance Coatings [5]. - The company announced its 46th consecutive annual dividend increase, positioning it to become a Dividend King by 2029 [6]. - Despite a high price-to-earnings (P/E) ratio of 33.1 and a low yield of 0.9%, Sherwin-Williams is considered a premium investment due to its industry leadership [7]. McDonald's - McDonald's has shown resilience, with an 8% year-to-date increase in stock price, outperforming major indexes [8]. - The company's business model relies heavily on franchising, with 95% of its restaurants being franchised, providing stable cash flow [9]. - McDonald's has paid a growing dividend for 48 consecutive years, with a manageable payout ratio under 60% and a yield of 2.3% [10]. - Over the past decade, McDonald's stock price has increased by 220%, while the share count has decreased by over 25% due to buybacks [10]. Clorox - Clorox has faced challenges in growth but is undergoing a turnaround that may benefit long-term investors [11]. - The company has a diverse brand portfolio but has struggled with supply chain management and cost control [12]. - Clorox is making investments in digital technologies and transitioning to a cloud-based platform to improve efficiency [13]. - Management projects adjusted earnings per share for fiscal 2025 to be between $6.95 and$7.35, resulting in an adjusted P/E ratio of 20.6 [14]. - Clorox offers a 3.3% dividend yield and has increased its dividend for 40 consecutive years, making it appealing for value investors [14].