Core Viewpoint - Consumer stocks are recognized for their ability to generate substantial dividend income, supported by a loyal customer base that ensures consistent profits and cash flow for shareholders [1]. Group 1: Realty Income - Realty Income is a REIT focused on single-tenant commercial properties, with over 15,500 properties and a client base including Home Depot and Dollar General [3][4]. - The company has maintained a monthly dividend since 1994, currently paying $3.24 per share annually, resulting in a dividend yield of 5.3%, significantly higher than the S&P 500 average of 1.1% [4][6]. - Realty Income's stock trades at 15 times its FFO income, indicating potential for stock price appreciation alongside its generous dividend [7]. Group 2: Target - Target operates nearly 2,000 locations across the U.S., with over 75% of Americans living within 10 miles of a store [8]. - Despite recent struggles, including inventory issues and political controversies, Target has a P/E ratio of 13, which is lower than competitors like Walmart and Costco [9][12]. - As a Dividend King with 54 years of dividend increases, Target's annual payout is $4.56 per share, yielding 4.3%, and plans for a $5 billion investment in store remodels and technology could revitalize the business [12][13]. Group 3: Clorox - Clorox is known for its cleaning products and other brands like Kingsford and Burt's Bees, but faced challenges post-pandemic, including inflation and a cyberattack [14]. - The stock price decline has resulted in a P/E ratio of 18, near a multiyear low, while the annual dividend payout of $4.96 per share yields 4.4% [15][16]. - Improvements from an ERP implementation could enhance efficiencies, and brand loyalty may support Clorox's recovery despite inflation concerns [17].

Core Viewpoint - AbbVie and Medtronic are highlighted as healthcare stocks that consistently grow their dividends, supported by healthy free cash flow, despite the general trend of lower dividend yields in the healthcare sector [1][3][15]. AbbVie - AbbVie has a dividend yield of 2.98% and has increased its quarterly dividend for 54 consecutive years, qualifying it as a Dividend King [4]. - The company reported revenue of $15.8 billion in the third quarter, a 9% year-over-year increase, although earnings per share (EPS) declined by 38% to $1.86 due to higher R&D spending [6]. - AbbVie has successfully transitioned from reliance on Humira, which previously accounted for 63% of its revenue, to a diversified portfolio including Rinvoq and Skyrizi, with Skyrizi generating $4.7 billion in the latest quarter [7]. - The oncology segment now contributes nearly 11% to AbbVie's revenue, bolstered by new therapies [8]. - AbbVie's dividend payout ratio is 58%, but its free cash flow per share of $11.11 supports its annual dividend payout of $6.92 [9]. Medtronic - Medtronic, with a market cap of $132 billion, is the largest stand-alone medical device maker, producing a wide range of medical equipment [10]. - The company reported revenue of $9 billion in the second quarter of fiscal 2026, a 6.6% year-over-year increase, with EPS rising 8% to $1.07 [13]. - Medtronic's dividend yield is approximately 2.76%, and it has increased its dividend for 48 consecutive years, with a payout ratio of 69% [14]. - The company plans to spin off its diabetes business, which accounts for only 8% of revenue, without impacting its dividend [14]. Industry Insights - Healthcare companies, unlike utilities, must continuously invest in R&D due to the nature of their products, which often face patent expirations and generic competition [2]. - AbbVie and Medtronic leverage their size and diversification to maintain revenue growth and dividend increases, mitigating risks from potential downturns in specific segments [15][16].

Core Viewpoint - The Columbia Seligman Premium Technology Growth Fund (STK) presents an attractive investment opportunity despite market indices being near all-time highs [1] Group 1: Investment Strategy - The company emphasizes a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] - This approach aims to achieve a total return comparable to traditional index funds, specifically the S&P [1] Group 2: Market Context - The current market environment makes it challenging to identify well-priced investment opportunities, yet STK stands out as a viable option [1]

Core Insights - Coca-Cola has maintained a dividend growth streak for 63 years, making it one of only 56 companies globally recognized as Dividend Kings as of December 2025 [1][2] - There are indications that Coca-Cola may announce a significant dividend increase, potentially in the double digits, as the last substantial hike over 10% occurred in 2007 [2] Dividend Growth Analysis - Over the past decade, Coca-Cola's average annual dividend growth was 3.94%, which has generally outpaced inflation but is considered modest [3] - The dividend hikes from 2021 to 2025 have been relatively low compared to historical performance, with cumulative growth of 25.5% since 2021, which barely matches the 24.3% inflation during the same period [4][7] Historical Performance - From 1994 to 1998, Coca-Cola's dividend growth was robust, with increases of 14.7% in 1994 and a cumulative rise of 76% over five years, significantly outpacing the cumulative inflation rate of 12.8% [5][7] Current Financial Performance - Recent earnings reports show a substantial adjusted quarterly earnings growth of 29.8%, compared to just 5% growth a year prior [8] - Coca-Cola's operating margin has increased to 32% from 21.2% a year earlier, indicating improved profitability and greater cash availability for dividends, share buybacks, or acquisitions [9]

If you want access to our entire Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Landlord.Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns. Austin is a contributing author f ...

Core Viewpoint - The article discusses the dividend prospects of three popular stocks for income investors: Coca-Cola, Domino's Pizza, and Texas Instruments, highlighting their dividend growth potential and current yields. Group 1: Coca-Cola - Coca-Cola is a dividend king, having raised its per share dividend for 63 consecutive years [1] - The stock currently yields 2.8%, down from 3.1% a year ago, with a 3.9% annualized dividend growth over the past 5 years [2] - The company's payout ratio has decreased from above 80% in 2020 to below 70% currently, with forecasts suggesting an increase in the annual dividend from $24 to $26.5 by 2029 [2][3] Group 2: Domino's Pizza - Domino's Pizza has a current yield of 1.7%, with an impressive 18.4% annualized dividend growth over the past 5 years [4] - Analysts forecast the annual dividend will rise from $6.96 to $11.64 by 2029, indicating a capacity to raise the dividend by 14.5% per year [4] - The stock is currently trading at a 5% discount to its fair value estimate of $436 [5] Group 3: Texas Instruments - Texas Instruments is nearing dividend aristocrat status, having increased its dividend for 22 consecutive years [5] - The stock currently yields 2.7%, consistent with its 5-year average, and has shown 10.4% annualized dividend growth over the past 5 years [6] - Analysts project the annual dividend will increase from $5.68 to $6.46 by 2029, with management focusing on redistributing excess cash to shareholders [6][7]

Core Viewpoint - Lowe's Companies Inc. is recognized for its consistent dividend growth, making it an attractive option for investors focused on steady income [3]. Group 1: Company Overview - Lowe's operates as a broad-based home improvement retailer, providing products for construction, maintenance, repair, remodeling, and home decoration [5]. Group 2: Financial Performance - TD Cowen raised its price target for Lowe's from $250 to $295 while maintaining a Hold rating, indicating a positive outlook within the broader hardlines sector [2]. - The company has increased its dividend by over 300% in the past decade, showcasing its commitment to returning value to shareholders [3]. Group 3: Market Dynamics - Concerns regarding a housing slowdown may be exaggerated, as tight housing supply often leads homeowners to invest in home improvement rather than purchasing new homes, which can sustain demand for renovation projects [4].

Core Viewpoint - Cincinnati Financial Corporation (CINF) is recognized for its long-standing commitment to dividend growth, having raised its dividend for 65 consecutive years, which positions it among the top dividend growth stocks in the market [2]. Group 1: Company Overview - Cincinnati Financial Corporation has a strong emphasis on financial strength to fulfill its insurance obligations while creating shareholder value through regular dividend payments [2]. - The company primarily offers business, home, and auto insurance through its core subsidiary, The Cincinnati Insurance Company [3]. Group 2: Market Analysis - BofA has lowered its price target for Cincinnati Financial from $186 to $180 while maintaining a Buy rating, citing weak pricing trends in property and casualty insurance products [3]. - Despite the challenges in pricing, particularly in personal auto insurance, underwriting valuations for Cincinnati Financial do not appear to be stretched [3]. - Liability lines are experiencing better pricing, but loss costs are increasing at a faster rate than prices [3].

Core Insights - Erie Indemnity Company (NASDAQ:ERIE) is recognized as one of the Dividend Growth Stocks: 25 Aristocrats, highlighting its strong dividend performance [1] - The company has a long-standing presence in the insurance industry, established since the 1920s, and offers a diverse range of insurance products including life, auto, home, and commercial insurance [2] Financial Performance - In the third quarter, Erie Indemnity reported revenue of $1.06 billion, reflecting a 6.0% increase compared to the same period last year [3] - The growth in revenue was primarily driven by a 7.3% year-over-year increase in management fees related to policy issuance and renewals, alongside a 9.8% rise in administrative services fees [3] - Investment income also saw an increase, rising to $21.6 million from $19.5 million a year earlier [3] Dividend History - Erie Indemnity has a significant history of maintaining and increasing dividends, having raised its dividend for 36 consecutive years, which underscores its operational consistency [5][8] - The company has demonstrated resilience during economic downturns, notably not cutting its dividend during the Great Recession, which contributes to its reputation among investors [4][5] Market Position - The company operates in a cyclical sector and is exposed to economic fluctuations, yet it has shown a strong ability to recover and continue rewarding shareholders [5] - Erie Indemnity holds a large float, with premiums collected upfront and invested, making its results sensitive to market rates, including Treasury yields [4]

Core Insights - Eversource Energy supplies electricity, natural gas, and water to approximately 4.6 million customers across Connecticut, Massachusetts, and New Hampshire, operating as a regulated utility with rates set by federal and state regulators [1] - The company has a strong earnings record and is expected to benefit from scheduled rate increases, ongoing transmission upgrades, and investments in clean energy projects [2] - Eversource has exited its US commercial-scale offshore wind business, allowing it to focus entirely on regulated utility operations [2] Investment and Growth Plans - Management plans to invest about $24.2 billion between 2025 and 2029 to modernize and expand infrastructure, with an additional $1.5 billion to $2 billion available for incremental projects during the same period [3] - These investments support an outlook for 5% to 7% annual non-GAAP EPS growth over the forecast window [4] Dividend Information - Eversource Energy recently raised its quarterly dividend by 4.7% to $0.7875 per share, marking 26 consecutive years of dividend growth [4] - The company is recognized among the Dividend Growth Stocks: 25 Aristocrats, indicating a strong commitment to returning value to shareholders [7]