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Dividend growth investing, growth at reasonable price, long-term horizon
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Who does not love dividends? It is another extra source of income on top of the returns our stocks produce. Additionally, with the market full of volatile stocks and uncertainty, stocks that have increased their dividends for at least 40 years sure make one feel much better than holding other stocks. Furthermore, It is really not easy for a company to grow its dividends consistently like the stocks listed in this article. They must have a strong business with consistently growing profits in order to achieve this.

Besides this, today's screen will only include consumer companies, which is deemed by many to be much safer than sectors such as technology or financial, sectors which many view to be more volatile in the short-term and unreliable over the long run.

Another criteria that was included in the screen was that the stocks' payout ratio (amount of revenue given out as dividends) must not be above 70%. A company with too high a payout ratio indicates that it may not be able to support the dividend in the future, especially during recessions, which are inevitable, when many companies have to depend on their cash hoard to further expand.

Finally, one last criteria was that its EPS should have gone up at least 5% year-over-year for the past 5 years. This is to further confirm that a company's business is still stable and not starting to decline. 5% may seem like too low a number for some, but one has to keep in mind that these are companies that have a long history and most likely have matured businesses.

All these measures were actually taken to ensure that a company's dividend is and will be sustainable, as firstly, an announcement of a decrease in dividend would most likely impact the price of the stock. Secondly, a stock with declining dividend after it has been increased yearly for 40 years or more would not be attractive to me anymore, as it would be evident that there are problems with the company.

Without further ado, here are the stocks:

(Please also note that the dividend charts you will be seeing later into the article have limitations - the software only has the dividend information up to a certain year and not the full history of the dividend payments. I apologize in advance for the inconvenience caused.)

1. Colgate-Palmolive Co. (NYSE:CL)

Snapshot:

Industry

Personal Goods

Country

USA

Price (26.10.2012)

$103.87

Market Cap

49.25B

Income (2011)

2.45B (P/E: 20.57)

Dividend

$2.48 (2.39%)

Consecutive Dividend Increases (Years)

48 (Since 1964)

Dividend Chart From 1977-2012:

(click to enlarge)

Colgate-Palmolive Company manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, dental floss and pharmaceutical products for oral health professionals; personal care products like liquid hand soaps and shower gels; and home care products, such as laundry and dishwashing detergents and household cleaners.

The company provides its oral, personal, and home care products under names like Colgate Total, Colgate Sensitive Pro-Relief, Colgate 360, Colgate Plax, Palmolive, Protex , Elmex, Tom's of Maine, and Mennen brand names to wholesale and retail distributors. It also offers pet nutrition products for dogs and cats.

Colgate-Palmolive Company was founded in 1806 and its headquarters is in New York City, New York.

2. Diebold, Inc (DBD)

Snapshot:

Industry

Business Equipment

Country

USA

Price (26.10.2012)

$29.51

Market Cap

1.87B

Income (2011)

193.17M (P/E: 9.71)

Dividend

$1.14 (3.86%)

Consecutive Dividend Increases (Years)

58 (Since 1954)

Dividend Chart From 1982-2012:

(click to enlarge)

Diebold, Inc. provides integrated self-service delivery and security systems and services primarily to the financial, commercial, government and retail markets worldwide. It offers self-service solutions, including automated teller machines, check-cashing machines and self-service software solutions consisting of various applications that process events and transactions; and self-service support services comprising installation and ongoing maintenance of products, distribution channel consulting, as well as outsourced and managed services.

The company also provides various security solutions like bullet-resistive items and undercounter equipment; a range of electronic security products, such as digital surveillance systems and diagnostics; and security monitoring solutions like fire, managed access control and logical security. In addition, it offers strategic analysis and planning of new systems, project management, and a variety of other similar services.

Diebold, Incorporated sells its products through its sales personnel, manufacturers' representatives, and distributors. The company was founded in 1859 and its headquarters is in North Canton, Ohio.

3. Hormel Foods Corp. (NYSE:HRL)

Snapshot:

Industry

Meat Products

Country

USA

Price (26.10.2012)

$29.34

Market Cap

7.71B

Income (2011)

484.76M (P/E: 16.30)

Dividend

$0.60 (2.04%)

Consecutive Dividend Increases (Years)

45 (Since 1967)

Dividend Chart From 1990-2012:

(click to enlarge)

Hormel Foods Corporation engages in the production and marketing of various meat and food products. Its meat products include fresh, frozen, cured, smoked, cooked and canned meat. The company provides meat products, which include fresh meats, sausages and hams; poultry products; and shelf-stable products, such as canned luncheon meats, shelf-stable microwaveable entrees, stews and tortilla chips.

It also offers nutritional food products and supplements and industrial gelatin products; and frozen and fresh Mexican appetizers, snacks, and hand-held items. Hormel Foods Corporation sells its products through sales personnel, as well as through independent brokers and distributors to the retail and foodservice customers locally and internationally.

The company was formerly known as George A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is based in Austin, Minnesota.

4. The Coca-Cola Company (NYSE:KO)

Snapshot:

Industry

Beverages- Soft Drinks

Country

USA

Price (26.10.2012)

$37.04

Market Cap

166.75B

Income (2011)

8.81B (P/E: 19.29)

Dividend

$1.02 (2.75%)

Consecutive Dividend Increases (Years)

49 (Since 1963)

Dividend Chart From 1962-2012:

(click to enlarge)

The Coca-Cola company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include carbonated energy drinks, carbonated waters and flavored waters. The company's still beverages include noncarbonated waters, flavored waters and juices and juice drinks, ready-to-drink teas and coffees, and sports drinks.

The Coca-Cola Company sells its products under names such as Diet Coke, Fanta, Sprite, Coca-Cola Zero and Minute Maid. The company offers its beverage products through distribution operators and independently owned bottling partners. The Coca-Cola Company was founded in 1886 and its headquarters is in Atlanta, Georgia.

5. Lancaster Colony Corp. (LANC)

Snapshot:

Industry

Food- Major Diversified

Country

USA

Price (26.10.2012)

$72.75

Market Cap

1.99B

Income (2011)

95.63M (P/E: 20.73)

Dividend

$1.44 (1.98%)

Consecutive Dividend Increases (Years)

49 (Since 1963)

Dividend Chart From 1990-2012:

(click to enlarge)

Lancaster Colony Corporation engages in the manufacture and marketing of consumer products focusing primarily on specialty foods for the retail and foodservice markets in the United States. The company operates in two segments: Specialty Foods; and Glassware and Candles. The Specialty Foods segment includes salad dressings and sauce, fruit glazes, vegetable dips, frozen breads, biscuits and premium dry egg noodles and pastas. This segment markets its products through sales personnel, food brokers and distributors to retail.

The Glassware and Candles segment produces and markets candles, candle accessories, and other home fragrance products. This segment sells candles, glassware, and various other products to customers in commercial markets consisting of restaurants, hotels, hospitals, and schools. The company was founded in 1961 and is based in Columbus, Ohio.

6. Procter & Gamble Co. (PG)

Snapshot:

Industry

Personal Products

Country

USA

Price (25.10.2012)

$69.44

Market Cap

191.47B

Income (2011)

8.90B (P/E: 22.33)

Dividend

$2.25 (3.24%)

Consecutive Dividend Increases (Years)

55 (Since 1957)

Dividend Chart From 1970-2012:

(click to enlarge)

The Procter & Gamble Company, together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. The Beauty segment provides things like antiperspirants, deodorants and skin care products. The Grooming segment offers blades and razors, electronic hair removal devices and hair care appliances. The Health Care segment provides feminine care, gastrointestinal, incontinence, other personal health care products and other supplements.

The Fabric Care and Home Care segment offers things like bleach and laundry additives, air care products, batteries and surface care products. The Baby Care and Family Care segment provides baby wipes, diapers, paper towels and a variety of other baby products. The company markets its products through mass merchandisers and other retail outlets in approximately 180 countries worldwide. The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio.

7. Stepan Company (SCL)

Snapshot:

Industry

Cleaning Products

Country

USA

Price (26.10.2012)

$93.70

Market Cap

971.67M

Income (2011)

75.36M (P/E: 13.92)

Dividend

$1.12 (1.20%)

Consecutive Dividend Increases (Years)

44 (Since 1968)

Dividend Chart From 1992-2012:

(click to enlarge)

Stepan Company engages in the production and sale of specialty and intermediate chemicals to manufacturers in various industries worldwide. The company produces and sells surfactants that are used as principal ingredients in consumer and industrial cleaning products, such as detergents, shampoos, body washes, toothpastes, emulsifiers, plastics and biodiesel.

It also offers polymers, including polyols that are used in the manufacture of rigid laminate insulation board for thermal insulation, as well as a base raw material for flexible foams, coatings and adhesives. It also produces other chemicals for a variety of other industries. In addition, the company provides specialty products comprising flavors, emulsifiers, and solubilizers that are used in the food and pharmaceutical industries. Stepan Company was founded in 1932 and its headquarters is in Northfield, Illinois.

8. Tootsie Roll Industries (NYSE:TR)

Snapshot:

Industry

Confectioners

Country

USA

Price (26.10.2012)

$26.64

Market Cap

1.52B

Income (2011)

46.06M (P/E: 34.15)

Dividend

$0.32 (1.20%)

Consecutive Dividend Increases (Years)

46 (Since 1966)

Dividend Chart From 1988-2012:

(click to enlarge)

Tootsie Roll Industries, Inc. engages in the manufacture and sale of confectionery products primarily in the United States and Mexico. It primarily offers candy products under a variety of different trademarks. It distributes its products through a variety of wholesale distributors and the United States military. The company also exports its products to Canada and internationally. Tootsie Roll Industries, Inc. was founded in 1896 and is based in Chicago, Illinois.

Overall, the stocks mentioned in this article are more suitable for holding for the long term in order to take advantage of their dividends and their slow but steady price appreciation. Even so, please still do your due diligence before investing and use this list only as a starting point for your research.

Source: 8 Consumer Stocks With 40 Years Or More Of Consecutive Dividend Increases