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A promise is a cloud; fulfilment is rain. --Arabian proverb

For investors seeking companies with a long history of making timely payments, this list could prove to be a valuable tool in your quest for stocks that have a record of paying healthy dividends This is a list of companies that have in some cases paid dividends for over 10 decades with a history of constantly increasing their dividend. While the yields are not as high as the companies we covered in our two recent articles, the difference is that these companies have an extensive record of paying out dividends in a timely fashion. In many instances, they have been paying dividends for over 60 years, and in most cases these companies have been around much longer than some of the high-flyers mentioned in the above two articles.

This does not mean that one should shun stocks with lofty yields. Doing so would be a mistake; the yields offered in many instances are truly spectacular. The thing to keep in mind is that one should never put all of one's eggs in one basket. Annaly Capital Management (NLY) is a prime example of a company that offers a lofty dividend and has a long history of making timely payments. It has a yield of 14.7%, a 5-year dividend growth rate of 49.5%, and it has been paying dividends since 1997. CenturyLink (CTL) is another example with a yield of 8.5% and a 5-year dividend growth rate of 117%. It has been paying dividends since 1974, and has increased the dividend for 37 years in a row.

Some companies in the list below warrant a closer look. AT&T (T), which has a healthy yield of 6.1%, is trading almost $10 below book value and Old Republic International (ORI), which has a yield of 7.8%, is trading almost $6 below book value. Cincinnati Financial (CINF) has a yield of 6.1% and is also trading almost $5 below book value. Investors Real Estate Trust (IRET) and Pitney Bowes (PBI) both offer attractive yields of 8.7% and 8.9%, respectively, and over 12% of the float in both companies is being shorted. However, a more compelling play might be United Bankshares (UBSI), where over 18% of the float is being shorted. UBSI has a healthy yield of 5.8%, and any good news could force the bears to cover their shorts.

Stock

Dividend

Debt-to-Equity Ratio

Market Cap

P/E

Total Cash

Operating Margins

Revenue

Cash Flow

LEG

5.3%

60%

2..98B

12.39

203 M

12.53%

3.51B

345.6M

MO

6.3%

295%

54.37B

11.99

2.06B

38.86%

16.54B

2.96B

T

6.1%

58%

169.54B

11

3.83B

15.51%

125.68B

35.94B

WRE

6.10%

157%

1.9B

14

42.89M

30.12%

310.75M

109.97M

CINF

6.10%

16%

4.35B

18

313M

10.94%

3.9B

282M

ORI

7.8%

23%

2.29B

22.37

1.23B

-3.9%

4.39B

-224M

PBI

8.9%

100%

4.03B

8.83

624.1M

15.13%

5.42B

977.71M

B= Billion; M= Million

Leggett & Platt, Inc. (LEG)

  • Paying dividends since 1939
  • Percent of shares held by institutions: 56.9
  • Percent held by Insiders: 11.53
  • Short % of Float: 4.1%
  • ROE: 12.53
  • Forward Dividend: 5.7%
  • Payout ratio: 93%
  • 5 year dividend average: 4.7%
  • Consecutive Dividend increases for 39 years
  • Dividend Growth rate 5 year average 11.54%
  • Book value $10.14

Altria Group Inc (MO)

  • Paying dividends since 1928
  • % shares held by institutions 60.3%
  • % Held by Insiders 0.07%
  • Short % of Float 1.5%
  • ROE 74.4%
  • Book Value $2.24
  • Forward Dividend 6.4%
  • Payout ratio 93%
  • Dividend payout ratio 5 yr average 103%
  • Dividend Yield 5yr average 8.9%
  • Consecutive dividend increases 45 years

AT&T Inc.

  • Paying dividends since 1861
  • % shares held by institutions 58%
  • % Held by Insiders 0.03
  • Short % of Float 1.1%
  • ROE 18.29%
  • Book Value $19.2.
  • Forward Dividend 6.2%
  • Payout ratio 51%
  • Dividend payout ratio 5 yr average 70%
  • Dividend Yield 5yr average 5.3%
  • Consecutive dividend increases 6 years

Washington Real Estate Investment (WRE)

  • Paying dividends since 1962
  • % shares held by institutions 76.6%
  • % Held by Insiders 0.07%
  • Short % of Float 7.60%
  • ROE 1.93%
  • Book Value $12.39
  • Forward Dividend 6.2%
  • Payout ratio 788%
  • Dividend payout ratio 5 yr average 382%
  • Dividend Yield 5yr average 5.5%
  • Consecutive dividend increases for 41 years

Cincinnati Financial Corp.

  • Paying dividends since 1954
  • % shares held by institutions 64%
  • % Held by Insiders 14.25%
  • Short % of Float 6.6%
  • ROE 6.02%
  • Book Value $31.03.
  • Forward Dividend 6.3%
  • Payout ratio 70%
  • Dividend payout ratio 5 yr average 48%
  • Dividend Yield 5yr average 5.2
  • Consecutive dividend increases 50 years

Old Republic International

  • Paying dividends since 1942
  • % shares held by institutions 81.5%
  • % Held by Insiders 6.3%
  • Short % of Float 7.00%
  • ROE -3.31
  • Book Value $15.56.
  • Forward Dividend 8.00%
  • Payout ratio 532%
  • Dividend Yield 5yr average 7.8%
  • Consecutive dividend increases 29 years

Pitney Bowes Inc.

  • Paying dividends since 1934
  • Percent of shares held by institutions: 83.5
  • Percent held by Insiders: 0.21
  • Short % of Float: 12.2%
  • ROE: 158.17%
  • Forward Dividend: 14.5%
  • Payout ratio: 89%
  • 5 year dividend average: 5.5%
  • Consecutive Dividend increases for 29 years
  • Dividend Growth rate 5 year average 3.05%

Conclusion

Investing in stocks that offer above-average yields leads to far superior returns over time, in contrast to investing in very low to zero yield stocks. Before opening any position in the stocks mentioned, make sure you do your due diligence and are satisfied that the stock meets with your investment criteria.

Source: 7 Dividend Super-Stocks With Stellar Payment Histories