The consistency of dividend payments is always the sign of long-term investment opportunity for any investor. Businesses which have been paying dividends for more than 100 years will have a high probability of bringing its shareholders great value in the long-term. Here are the top four stocks in this category that investors should take a closer look at:
Johnson Controls (JCI): This is a global diversified technology and industrial leader operating in more than 150 countries. Johnson Controls offers products, services and solutions to optimize energy and operational efficiencies of buildings, batteries for hybrid and electric vehicles, and inferior systems for automobiles. Johnson Controls was originally incorporated in 1885 in the name of Johnson Electric Service. It has been paying continuous dividend for 125 years, since 1887. In the market bottom of March 2009, the stock dropped from $42 to only around $9 per share. And now it is back to $33 per share. The total market capitalization is $22.45 billion. The dividend yield is 2.19%. Currently, the market values Johnson Controls at 13.7x earnings, 2x book value and 25.6x operating cash flow.
Colgate Palmolive (CL): It is the leading consumer products company, operating in over 200 countries globally. It was founded in 1806 and incorporated in Delaware in 1923. It has two main product segments: Oral, Personal and Home Care, and Pet Nutrition. The company is known as a global leader in Oral Care (with the leading toothbrush and toothpaste brands) according to the data of value share provided by AC Nielsen. Colgate Palmolive has been paying uninterrupted dividends since 1895. The current share price is $91. The dividend yield is 2.54%. With the total shares outstanding of 484 million, the market capitalization is $44 billion. At this current market valuation, Colgate Palmolive is valued at 18.3x P/E, 16.6x P/B and 14.9x P/CF.
Procter & Gamble (PG): The business has many famous consumer goods brands around the world. Its products are sold in more than 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores. Last year, the company was organized into two main Global Business Units: Beauty and Grooming, and Household Care. These two Global Business Units consist of six segments: Beauty, Grooming, Health Care, Snacks and Pet Care; Fabric Care and Home Care; and Baby Care and Family Care. The company has been paying consistent dividends since 1890. Right now, with the current market capitalization of $176 billion, the share price is $63.8. The dividend yield is 3.29%. Currently, the business is valued at 18.8x P/E, 2.8x P/B and 14.2x P/CF.
Church & Dwight (CHD): Founded in 1846, Church & Dwight develops, manufactures and sells a wide variety of household, personal care and specialty products. It is divided into three business segments: Consumer Domestic, Consumer International and Specialty Products. It has eight "power brands", including ARM & HAMMER, TROJAN condoms, XTRA detergent, OXICLEAN pre-wash laundry additive, NAIR depilatories, FIRST RESPONSE home pregnancy and ovulation test kits, ORAJEL oral analgesics and SPINBRUSH battery toothbrushes. It has been paying consecutive dividends since 1901. Right now, with the current share price of $47.4 and total shares outstanding of 143 million, the market capitalization is $6.78 billion. The market currently values its business at 23.6x earnings, 3.3x book value and 15x cash flows.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.