It is more difficult than ever for investors to get the revenue they need from their portfolios. Even with stock prices rising, a difficult environment due to the COVID-19 pandemic has led many companies to cut dividend payments. In addition, with interest rates remaining extremely low, there are not many good alternatives to the stock market for income investors.
Fortunately, there are still some elite companies that investors can rely on to increase dividends, even in difficult times. Next, we’ll look at three stocks that have an impressive dividend history and are expected to increase the amount they pay to shareholders next month.
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1. Coca-Cola
Coke (NYSE: KO) has one of the longest dividend-raising strings in the stock market. For 58 consecutive years, the beverage giant has delivered greater dividend payments to its shareholders than in the previous year. Currently, Coca-Cola pays a dividend yield of more than 3.3%, which is well above the market average as a whole.
Coca-Cola’s businesses have gone through difficult times in recent years. The company has relied on its sugary soft drinks for much of its history, but the move towards healthier food and drink options has forced it to change. It did a good job of expanding its product lines, incorporating still and sparkling water, juices, teas and other drinks into the mix.
Historically, Coca-Cola has wasted no time in making its annual dividend increase, with the announcement of its first quarter payment normally occurring in mid-February. Based on financial performance and recent practice, investors are likely to receive only an increase of $ 0.01 per share in the quarterly payment, bringing it to $ 0.42 per share. However, investors in the beverage giant will take every penny they can, while hoping that Coca-Cola’s growth efforts will also pay off.
2. Walmart
In the retail space, Walmart (NYSE: WMT) has been a longtime champion. The company has grown immensely over the decades, playing a leading role with its extensive store location area. It has also become a popular choice for income investors, as it has seen a series of 47 consecutive increases in its annual dividend payments.
Many mature companies end up emphasizing dividends more than growth, but Walmart has been an exception lately. Inventory has doubled in the past four years as the company has built an increasingly robust set of e-commerce resources to face competition from Amazon.com (NASDAQ: AMZN) and took advantage of its store chain to advance the distribution strategy. These strategic moves have kept Walmart relevant in an increasingly digital world.
Walmart almost always announces its dividend increases in the first quarter, with announcements generally arriving in late February. Shareholders can probably expect another increase of $ 0.01 per share, which is what they have achieved in recent years. The resulting dividend payment of $ 0.55 per share will represent a rather stingy return of around 1.6%, but the total return on shares has been more than ample.
3. Albemarle
Last until, Albemarle (NYSE: ALB) is at the forefront of a new trend, but has a long history of appropriate treatment for shareholders. Growing dividends have been on the menu for 26 consecutive years, making it a recent addition to the Dividend Aristocrat list.
Albemarle is a producer of specialty chemicals, but his lithium business has received the most attention lately. The demand for battery storage has dramatically increased the need for lithium, and this has made Albemarle a widely followed company. Still, Albemarle suffered disruptions as a result of the pandemic, damaging its recent results.
Investors will be watching closely in the coming weeks to see what Albemarle will do with its dividends. Typically, the chemical company makes an announcement during the last week of February, and an increase to about $ 0.40 per share quarterly would be consistent with previous practice. This would give Albemarle only a 1% yield, but many growth prospects to follow.
Watch out for bigger dividend checks
It is important to obtain the necessary revenue from your portfolio. Strong dividend stocks can allow you to meet your cash needs, and Albemarle, Walmart and Coca-Cola have a combination of solid revenues and growth prospects to help you now and in the future.