Evergreen stocks: 4 favorite dividend ideas

These blue chips should continue to grow through all political and economic environments.

By TheStockAdvisors Nov 7, 2012 10:45AM

REB Images Blend Images Getty ImagesBy Ian Wyatt, Wyatt Investment Research

Some dividend stocks are evergreen -- blue-chip dividend stocks with a long history of returning money to their shareholders.

Here are four companies whose payouts have been growing annually for decades -- regardless of elections, recessions, inflation rates, fiscal cliffs, European debt problems, Federal Reserve chairmen and other real or imagined market drivers.

Johnson & Johnson (JNJ)
The consumer staple/pharmaceutical company has increased its dividend every year since 2002. Its recent dividend hike in May brought the quarterly payout to $0.61 per share -- more than double the payout from eight years ago.

With a current yield of 3.6%, Johnson & Johnson is one of the more generous, reliable dividend payers on the market.

McDonald's (MCD)
The largest fast-food chain in the world will increase its dividend a whopping 10% this December. The new 77-cents-per-quarter payout will bring McDonald's yield to 3.3%.

Granted, the stock's 6% decline this year makes that yield look a bit shinier. But this is a company that has upped its dividend by an average of 20% a year since the 2008 recession.

It occupies a space that offers cheap food worldwide in the midst of a struggling global economy. As long as those struggles continue, McDonald's should flourish.

AT&T (T)
Telecommunications is one of the fastest growing industries in the world. So it's no surprise that telecom stocks are perhaps the most generous dividend payers on the market.

Telecom companies offered the highest yield rate of all S&P 500 stocks in 2011, at 5.9%. And no telecom company is bigger than AT&T.

The company offers its shareholders a yield of nearly 5%, and the dividend has grown steadily every year since 2004.

Other telecommunications companies may offer higher yields. But AT&T is an established, blue-chip company that has offered generous dividends for years.

Procter & Gamble (PG)
This is a company designed to profit even if the world were coming to an end. If the apocalypse was upon us, people would no doubt load up on Duracell batteries, Crest toothpaste, Pampers and Pepto-Bismol.

Those are just four of P&G's dozens of varied brands. People need those products in any economy -- under any president. That's how P&G has managed to increase its dividend for 56 straight years.

The current yield is 3.3%, with a quarterly payout of $0.56 per share. If any stock is completely unaffected by the election, this is it.

More from TheStockAdvisors.com

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124 rated 1
266 rated 2
452 rated 3
702 rated 4
671 rated 5
604 rated 6
640 rated 7
495 rated 8
267 rated 9
158 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.