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Why These 2 Recession-Proof Dividend Kings Are a Steal Right Now
The Motley Fool· 2025-09-29 08:15
Core Viewpoint - Investors seeking attractive yields and recession-resilient businesses should consider Coca-Cola and Procter & Gamble as strong options due to their historical performance and current valuations [1][2]. Group 1: Dividend Yields and Comparisons - The average dividend yield for S&P 500 stocks is 1.2%, while consumer staples companies average 2.5%. Coca-Cola offers a yield of over 3%, and Procter & Gamble's yield is approximately 2.8% [2][8]. - Both companies are classified as Dividend Kings, having consistently increased their dividends for over 50 years, even during recessions [7]. Group 2: Business Resilience - The consumer staples sector is considered recession-resistant as it includes businesses selling essential items, which consumers continue to purchase regardless of economic conditions [3][5]. - Coca-Cola and Procter & Gamble are among the largest publicly traded consumer staples companies, ranking No. 3 and No. 4 globally [5]. Group 3: Investment Valuation - Coca-Cola and Procter & Gamble are currently trading at attractive valuations, with price-to-sales, price-to-earnings, and price-to-book ratios below their five-year averages [9]. - Although neither stock is extremely cheap, their reasonable pricing is considered a good opportunity for investors, as these companies rarely go on sale [9]. Group 4: Long-term Investment Strategy - Warren Buffett's investment philosophy emphasizes buying good businesses at reasonable prices and holding them for long-term growth, which applies to both Coca-Cola and Procter & Gamble [10][11]. - Adopting a long-term investment approach with these companies may yield favorable outcomes, as current valuations could be seen as bargains in hindsight [11].
Don't Overlook These 2 Dividend Kings in Today's Volatile Market
Yahoo Finance· 2025-09-21 23:05
Group 1: Market Environment - President Trump's trade policies have introduced volatility to the stock market, with potential impacts on consumer spending and corporate financial results [1] - Despite strong equity performance this year, uncertainty remains in the market [1] Group 2: Investment Strategy - Investing in stocks that can navigate market challenges, particularly Dividend Kings, is advisable for long-term stability [2] - Dividend Kings are companies that have raised dividends for at least 50 consecutive years, indicating reliability [2] Group 3: Company Profiles - Coca-Cola is a leading consumer staples company with a diverse beverage portfolio, allowing for consistent revenue and earnings [5] - The company has maintained its strong market position through innovation, launching new products to meet evolving consumer preferences [6][7] - Coca-Cola and Abbott Laboratories have increased their dividends for a combined 116 consecutive years, showcasing their financial stability [8] Group 4: Company Performance - Coca-Cola's resilient business model is supported by its diversified product offerings and continuous innovation [7] - Abbott Laboratories is noted for its strong financial results and growth opportunities, making it an attractive investment [8]
1 Dividend King Stock That Just Got a Huge Endorsement from Billionaire Warren Buffett's Berkshire Hathaway
Yahoo Finance· 2025-09-16 11:45
Core Insights - Investing in Berkshire Hathaway has historically outperformed the S&P 500 and other major indexes, making it a closely watched indicator for investors [1] - Berkshire Hathaway has recently added Nucor, North America's largest steel company, to its equity portfolio, which may attract both income and growth investors [2] Company Overview - Nucor has invested over $15 billion since 2017 to expand its operations, including facility upgrades, new plants, and acquisitions, which are now starting to generate revenue and cash flow [4] - The company expects a significant increase in free cash flow in the latter half of the year due to reduced capital spending and favorable market conditions, as noted by CFO Steve Laxton [5] Financial Performance - Nucor is recognized as a Dividend King, with an expected dividend increase in 2025 marking its 53rd consecutive annual raise, indicating strong income potential for shareholders [6] Investment Considerations - Berkshire Hathaway's 3% stake in Nucor suggests expectations of a recovery in the housing sector, as the company also invested in homebuilders [5][7] - Despite Nucor's potential, it was not included in a list of the top 10 stocks recommended by The Motley Fool Stock Advisor, which may indicate varying opinions on its investment attractiveness [8]
Dividend Kings: 2 Ideal Buys In 25 "Safer" Of 56 September Dogs
Seeking Alpha· 2025-09-10 14:22
Group 1 - The article discusses the importance of identifying potential dividend stocks, particularly those with high yield or extraordinary financial circumstances [2]. - The leader of the investing group "The Dividend Dog Catcher" shares at least one new dividend stock idea weekly, which is archived for future reference [2]. - The Motley Fool and SureDividend periodically update their lists of dividend stocks, indicating a dynamic approach to stock selection [1]. Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainty in investment decisions [3]. - It clarifies that no specific investment recommendations are being made, and opinions expressed may not reflect the views of the entire platform [3].
Could These 3 Dividend Kings Be Worth $1 Trillion in 10 Years?
The Motley Fool· 2025-09-04 08:09
Core Insights - The article discusses the potential of three major healthcare companies—AbbVie, Johnson & Johnson, and Abbott Laboratories—to reach a market capitalization of $1 trillion within the next decade, highlighting their current market caps and required growth rates to achieve this milestone. Group 1: AbbVie - AbbVie has a current market cap of approximately $369 billion and requires a compound annual growth rate (CAGR) of 10.5% to join the trillion-dollar club within 10 years [4] - The company has seen positive revenue and earnings growth driven by its immunology drugs, Skyrizi and Rinvoq, which are expected to continue their sales growth until patent expiration in 2033 [5] - AbbVie has a strong pipeline and has made recent acquisitions in various fields, enhancing its growth prospects [6] - The company has increased its dividends for 53 consecutive years, offering a forward yield of 3% [7][8] Group 2: Johnson & Johnson - Johnson & Johnson currently has a market cap of $429 billion and needs an 8.8% CAGR over the next decade to reach a trillion-dollar valuation [9] - The company maintains consistent revenue and earnings due to its diverse portfolio of drugs and medical devices, despite facing some patent cliffs [10] - Johnson & Johnson is developing a robotic-assisted surgery device, Ottava, which could be a significant growth driver [11] - The company has a solid dividend history with 62 consecutive years of payout increases and a forward yield of approximately 3% [12] Group 3: Abbott Laboratories - Abbott Laboratories has a market cap of $231 billion and requires a CAGR of 15.8% to reach $1 trillion by 2035, which is considered a challenging target [13] - The company is diversified across four segments: medical devices, nutrition, diagnostics, and established pharmaceuticals, which helps mitigate risks [13] - Abbott is a leader in continuous glucose monitoring devices, with its FreeStyle Libre being the most successful medical device in history by dollar sales [15] - The company has increased its dividends for 53 consecutive years, with a forward yield of 1.8% [16][17]
Could This Dividend King Double Your Money in 5 Years?
The Motley Fool· 2025-08-23 08:50
Core Viewpoint - Doubling an investment in Coca-Cola within five years is challenging but not impossible, with dividend stocks providing a reliable income stream regardless of stock price fluctuations [1]. Group 1: Dividend Stocks and Stability - Dividend Kings, companies that have increased their annual dividends for at least 50 years, offer more stability due to their proven financial resilience [2]. - There are approximately 55 Dividend Kings, showcasing an elite group that has survived significant historical events while maintaining dividend increases [3]. Group 2: Coca-Cola's Investment Potential - Coca-Cola is a prominent Dividend King with 63 years of dividend increases, making it a historically strong investment [5]. - To double an investment in Coca-Cola over five years, the stock would need to achieve an average annual return of 14.4% [5]. - Coca-Cola's business model, which focuses on selling concentrates and licensing while relying on bottling partners, allows it to maintain higher margins compared to competitors [7]. Group 3: Dividend Yield and Growth - Coca-Cola's average dividend yield is just over 3%, which reduces the reliance on stock price appreciation for achieving investment growth [8]. - If the dividend yield remains around 3%, Coca-Cola's stock would need to average 11.4% annual growth over five years to double the investment [9]. Group 4: Challenges and Risks - Recent performance for Coca-Cola has been driven by pricing power rather than volume growth, with a 1% revenue increase but a 1% decline in global unit case volume in Q2 [10]. - Potential headwinds include new tariffs on aluminum and higher taxes on sugary products, which could impact Coca-Cola's business and investor sentiment [11]. Group 5: Investment Outlook - Achieving 14.4% annual returns is difficult for a mature business like Coca-Cola, which has not maintained such a five-year average since 2009-2013 [12]. - Current investment in Coca-Cola is unlikely to double in five years, but it remains a solid choice for consistent income, suggesting a long-term investment approach [13].
If You'd Invested $1,000 in AbbVie Stock 10 Years Ago, Here's How Much You'd Have Today
The Motley Fool· 2025-08-18 09:59
Core Viewpoint - AbbVie has significantly outperformed the broader market since its split from Abbott Laboratories in 2013, driven by strong sales from its immunology drug Humira and subsequent products Skyrizi and Rinvoq [1][2][4]. Performance Analysis - AbbVie's shares have increased by 353.3% over the past decade, translating to an annual growth rate of 16.3%, outperforming the S&P 500 [4]. - A $1,000 investment in AbbVie 10 years ago would be worth $4,530.75, compared to $3,690.99 for the S&P 500 [4]. Key Products - Humira was the cornerstone of AbbVie's success, achieving peak sales of $22.1 billion before losing patent protection in the U.S. in 2023 [7]. - AbbVie is transitioning to Skyrizi and Rinvoq, which are expected to generate combined sales of $31 billion by 2027, surpassing Humira's peak sales [9]. Future Outlook - The company has a robust pipeline and has expanded its product offerings through acquisitions, including the $63 billion acquisition of Allergan in 2020 [10]. - AbbVie is actively developing new products, such as GUB014295 for weight management, to ensure continued growth [11]. Dividend Performance - AbbVie has increased its dividend payouts by 221.6% over the past decade and has a forward yield of 3.2%, significantly higher than the S&P 500's average of 1.3% [12]. - The company is recognized as a Dividend King, with 53 consecutive years of payout increases [12]. Investment Potential - AbbVie is positioned to continue delivering strong returns, particularly for investors who reinvest dividends [13].
Is This the Best Dividend King Stock to Buy Right Now?
The Motley Fool· 2025-08-17 08:45
Group 1 - Coca-Cola is identified as a leading Dividend King, having increased its dividend for 63 consecutive years, with a current dividend yield of 2.9%, which is higher than the average yield of consumer staples stocks [4][9] - The company has a strong market presence with 30 brands worth at least $1 billion and products sold in over 200 countries, yet it sees significant growth potential in developing and emerging markets where it holds only a 7% market share [6][7] - Coca-Cola reported $12.5 billion in revenue for the second quarter, a 1% increase year-over-year, with earnings per share rising 58% to $0.88, despite facing an 11-point currency headwind [7] Group 2 - The stock has appreciated by 12% in 2025 and 37% over the last five years, with a consistent dividend growth of more than 24% during the same period, making it an attractive investment despite lower stock returns compared to tech stocks [8][9] - Coca-Cola's gross margin improved to 62.4%, up 133 basis points from the previous year, indicating effective cost management in the face of rising commodity prices [12] - The company is positioned well to manage tariff impacts on commodity costs, which are more controllable compared to other companies facing higher import costs [11][12] Group 3 - Coca-Cola is viewed as a reliable investment choice in a tariff-centric environment, with a strong historical performance in dividend payouts and a solid market position [11][13] - The company is expected to continue its growth trajectory, leveraging its dominant market position and the potential for expansion in emerging markets [7][13]
Farmers & Merchants Bancorp (FMCB) Announces Quarterly Cash Dividend
Globenewswire· 2025-08-13 13:30
Core Viewpoint - Farmers & Merchants Bancorp has announced a change in its dividend policy from semi-annual to quarterly payments, reflecting strong financial performance and aligning with industry practices [1][4]. Financial Performance - For the trailing twelve months ending June 30, 2025, the company reported a net income of $90.0 million, an increase from $87.9 million the previous year [2]. - Diluted earnings per share for the same period were $126.87, up 7.8% from $117.73 a year earlier [2]. - For the second quarter of 2025, net income was $23.1 million, or $32.94 per diluted common share [3]. - The annualized return on average assets was 1.65%, and return on average equity was 15.09% for the quarter [3]. - Total assets at quarter-end were reported at $5.5 billion [3]. Dividend Information - The Board of Directors declared a quarterly cash dividend of $5.00 per share, payable on October 1, 2025, to shareholders of record on September 11, 2025 [2]. - The last semi-annual cash dividend was $9.30, paid on July 1, 2025 [2]. - The company has paid dividends for 90 consecutive years and has increased dividends for 60 consecutive years, ranking 17th among "Dividend Kings" [4][6]. Capital Ratios and Credit Quality - As of June 30, 2025, the common equity tier 1 ratio was 13.88%, and the total risk-based capital ratio was 15.36%, exceeding regulatory requirements [3]. - The company maintained an allowance for credit losses on loans and leases of $76.2 million, or 2.09% of total loans and leases, with no non-accrual loans reported [3]. Industry Recognition - Farmers & Merchants Bancorp was ranked as the 3 best performing bank in the nation across all asset categories for 2024 by Bank Director's Magazine [7]. - The bank has consistently received high rankings in various studies, including being named the 1 best performing bank in 2022 and 2 in 2023 [8]. - F&M Bank was also recognized as the 6th best bank in America by Forbes in 2023 [9].
August Dividend Kings: 3 Ideal Buys In 25 'Safer' Of 50 Dogs
Seeking Alpha· 2025-08-09 15:52
Group 1 - The article discusses the periodic updates of lists related to Dividend Kings by The Motley Fool and SureDividend, indicating a focus on companies with a strong history of dividend payments [1] - Kiplinger has also featured a recent selection of Dividend Kings, suggesting that these companies are recognized for their reliability in dividend distribution [1] Group 2 - The Dividend Dogcatcher offers subscription services for more detailed information on dividend stocks, highlighting the importance of staying informed about potential investment opportunities [2] - The Underdog Daily Dividend Show, hosted by Fredrik Arnold, showcases portfolio candidates, emphasizing the engagement of investors in identifying promising stocks [2]