5 Consumer Goods Stocks with Dividends Built to Last

What do these stocks have in common?

• Not only are these stocks consumer goods companies, but they are also dividend aristocrats.

• A dividend aristocrat is a company that has increased its dividend every year for the last 25 years or more.

1. PepsiCo

• Pepsi has increased its dividend for 42 consecutive years.

• Last year, Pepsi returned $8.7 billion to shareholders through dividends and share buybacks.

Dividend yield: 2.92%

Low risk and high dividend growth

In addition to its signature soda business, Pepsi boasts a fast-growing snack segment that has 22 brands which each generate annual sales north of $1 billion. With roughly $66 billion in net revenue last year and $8.3 billion in free cash flow, Pepsi has plenty of cash on hand to continue rewarding shareholders for many years to come.

PepsiCo has paid quarterly cash dividends without fail since 1965.

2. Procter & Gamble

• Procter & Gamble has increased its dividend for the past 58 years running.

• Last year, P&G returned $12.9 billion in cash to shareholders.

Dividend yield: 3.23%

Reliable dividends and strong cash flow

The consumer goods giant currently pays a dividend of $2.65 per year, and boasts an annual compound average rate of over 9%. With products sold in over 180 countries today and $83 billion in fiscal 2014 sales, P&G should be able to continue growing its payouts in the years ahead.

P&G has being paying a dividend for more than 124 years straight.

3. Johnson & Johnson

• J&J has increased its dividend for the past 53 consecutive years.

• In fiscal 2014, J&N returned $7.8 billion in dividends and $7.1 billion in share repurchases.

Dividend yield: 2.99%

A steady long-term bet

Johnson & Johnson paid a cash dividend of $2.76 per share in 2014, up from $2.59 per share the prior year. With a reasonable payout ratio of 38% today and 2014 net sales north of $74 billion, investors can count on many more dividend hikes from this conglomerate going forward.

Johnson & Johnson has paid uninterrupted dividends since 1944.

4. Coca-Cola

• Coca-Cola has increased its dividend payout for the past 53 years straight.

• Coke has paid 375 consecutive dividends since its first payout in 1920.

Dividend yield: 3.21%

Coke has paid dividends since 1893

Even with soda sales declining today, Coke continues to benefit from strong sales of its sports drinks and healthier options. The company’s cash from operations totaled more than $10 billion in 2014. This strong cash generation should help Coke continue to grow its dividend in the quarters to come.

Coke boasts 20 brands that each generate sales north of $1 billion annually.

5. Colgate-Palmolive

• Colgate-Palmolive increased its dividend 6% in 2014, marking the 52 straight year of increased payouts for the company.

Dividend yield: 2.27%

A dividend for the next 100-years

The toothpaste and soap giant has been rewarding shareholders for more than a century, which lends it a reliable track record for future dividend growth. Last year, the company increased its annual dividend payout 6% to $1.52 per share. And with net sales north of $17 billion, investors can expect more growth ahead.

Colgate-Palmolive has paid uninterrupted dividends since 1895 – more than 100 years.

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