Dividends payment shares turn to investors for various reasons. This includes providing regular income and their tendency to do better during a decline.
Of course, when you are thinking of holding stocks for a decade, you will want to make sure you invest in a strong business with sustainable dividends. Coca-Cola (Nyse: ko) and Home (Nyse: HD) Have a story not only to maintain payments, but to collect them annually.
It is time to look at every company to find out why investors seeking dividends must make them part of their portfolio for at least the next 10 years.
Coca-Cola, founded in 1886, grew into a behemot drink. He sells his drinks, which include soda, water, juice and plant -based drinks around the world in more than 200 countries.
A mature company, its days for rapid growth look behind it. However, Coca-Cola continues to produce stable profits from the highest line. In the first quarter, sales increased by 6%after eliminating the effects of transfers and acquisitions in foreign currency. The price/mix is 5 percentage points, and the larger volume was responsible for the balance. This has led to a 10% increase in corrected operating income.
Higher sales and profitability supported dividends, a clear priority for the company. The Board of Directors has increased the three -month payment over 5% earlier this year, which has to provide investors with a degree of confidence, a reluctance of companies to reduce dividends. In fact, the last action marks 63 makes years with an increase, maintaining Dividend King’s Coca-Cola.
Action has a 2.9% dividend yield, more than twice S&P 500 1.2%of the index. With a 77% payment factor or the amount it pays compared to net income, the Coca-Cola dividend payments seem safe.
With growing profits and higher dividends, Coca-Cola must provide a good overall return after a decade.
Home Depot produces the highest sales in the home trade sector. His ubiquitous presence and size make him a popular destination for professional performers and people who make their own projects.
However, sales of the company can hesitate with the economy and more specially. This is because when people feel confident in their situation and buy homes, they usually do renovation.
Recently, economic factors such as high interest rates have made extensive repairs more expensive. This harmed the sales of Home Depot. Fiscal sales for the first quarter of the same stores (Comp) fell 0.3%, powered by lower traffic, although the effects of foreign currency translation removed 0.7 percentage points. And the US compounds have only risen by 0.2%. The corrected diluted profit per share of the company dropped to $ 3.56 from $ 3.67 a year ago. The period ended on May 4.