5 Companies in the U.S. with a Long History of Consistent & Growing Dividends

Here at The Fifth Person, we love dividends. It’s not the only the way to invest but if you’re looking for a safe, predictable way to build your wealth and passive income, dividend investing is a great way to do it!

So far, we’ve been sharing mostly about regional stocks when it comes to dividends. But some of the best dividend payers and growers are located in the U.S. – and it’s no surprise. The American economy is home to some of best and most entrepreneurial companies in the world. It only makes sense that many of the best dividend stocks are from America.

Do note however that if you’re a foreigner investing the U.S., you have a 30% withholding tax on all dividends. That is huge drawback for some investors, but if you can look past that and invest in companies that also have capital growth that do its best offset the high tax, you’ll find lots of gems in the USA. (And as you’ll see below, all these dividend growers are some best capital gainers as well!)

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So let’s dive right in and look at five which have a long history of consistent and growing dividends:

#1 Kimberly-Clark

Kimberly-Clark (NYSE: KMB) is one of the world’s leading personal care companies situated in Dallas, Texas with approximately 57,000 employees worldwide. They have operations in 35 countries. Their products categories include diapers, infant and child wipes, feminine care, incontinence care, facial tissues, bathroom tissues, and paper towels. Famous brands that they own include Huggies, Kotex, Poise, Depend, Kleenex and Scott.

KMB dividends

Kimberly-Clark has increased their dividend per share every year for the last 17 years. Their dividend compound annual growth rate alone of this period is 7.7% per annum. And the share price has grown in tandem over the years as well.

KMB

(Chart: Financial Times)

#2 Sysco Corp

Sysco Corp is the world’s largest food distributor that markets and distributes food products to the healthcare, education, government, restaurant, travel, leisure, retail, and hospitality industries. They distribute approximately 400,000 different products, including 41,000 Sysco brand products.

SYY dividends

Sysco also has 17 years of consistent & growing dividends. Their dividend compound annual growth rate for the past 17 years is 13.2% per annum.

SYY

(Chart: Financial Times)

#3 3M Company

3M Company is a global innovation company that has operations in more than 70 countries. Their products categories include electronic circuits, optical films, adhesives, car-care products, dental products, medical products, abrasives, electronic materials, and passive fire protection. All of these products are sold to 200 countries worldwide.

MMM dividends

3M has 14 years of consistent & growing dividends. Their dividend compound annual growth rate for the past 14 years is 6.02% per annum.

MMM

(Chart: Financial Times)

#4 Air Products & Chemicals

Air Products & Chemicals provides gases and chemicals to technology, energy, healthcare, food, and industrial markets worldwide. The company is located in over 40 countries and 60% of their sales are generated outside of the U.S.

APD dividends

Air Products & Chemicals has 16 years of consistent growing dividends. Their dividend compound annual growth rate for the past 16 years is 10.3% per annum.

APD

(Chart: Financial Times)

#5 Aflac

Aflac is the largest supplemental insurance company in the United States. In Japan, Aflac is the top insurance company ranked in terms of individual insurance policies in force. They insured estimated one out of four Japanese households.

AFL dividends

Aflac has 16 years of consistent & growing dividends. Their dividend compound annual growth rate for the past 16 years is 17.3% per annum.

AFL

(Chart: Financial Times)

The Fifth’s Perspective

As you can see, there are companies who pay consistent and growing dividends year after year after. And the value of a company which can consistently grow its revenue and profits in order to pay higher dividends every year is reflected in a higher and higher stock price as well.

So you can get the best of both worlds: steady, passive dividend income and long-term capital growth. You just need to know how to pick the best dividend stocks around 😉

[**Hot** Click Here to Read Our Quick 7-Step Guide to Picking the Best Dividend Stocks]

Victor Chng is an equity investor and co-founder of The Fifth Person. His investment articles have been published on The Business Times BTInvest section and Business Insider. He has also been featured multiple times on national radio on 938LIVE for his views and opinions on how to invest successfully in the stock market. Victor is also the co-author of Value Investing in Growth Companies published by Wiley, Inc. The book can be found in all major book stores worldwide and on Amazon.com, Barnes & Noble and Apple’s iBooks. On a personal note, Victor represented Singapore in the 2008 TAFISA World Games in Busan, South Korea and was the 2008 IFMA World Muay Thai Championships bronze medalist, kicking some serious ass along the way.

2 Comments

  1. Dfoo

    April 19, 2017 at 1:58 am

    How do you mitigate the high dividend withholding tax applicable to US stocks?

    • The Fifth Person

      April 20, 2017 at 5:06 pm

      Hi Dfoo,

      Unfortunately, we can’t avoid the withholding tax.

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