Dividend payment campaigns are attractive to investors for a variety of reasons. This includes regular income and their propensity to decline.
Of course, thinking about a decade with shares, you will want to make sure that you are investing in strong businesses with sustainable dividends. Coca-Cola (Nyse: what) and Home depot (NYSE: HD) Have not only maintenance of payments, but also growing history every year.
Time to examine each company to find out why they should make them part of their portfolio for at least the next 10 years.
Coca-Cola, founded in 1886, grew into a beverage worthless. He sells his drinks including baking soda, water, juice and vegetable drinks worldwide in over 200 countries.
A mature company, its rapidly growing days seems to be. However, Coca-Cola continues to provide stable high-end profits. In the first quarter, sales increased by 6%by removing the impact of foreign currency translations and acquisitions. The price/mixture was 5 percentage points and the larger quantity was responsible for the balance. As a result, the income of the revised operation increased by 10%.
Higher sales and profitability supported dividends, a clear priority of the company. The Board of Directors increased the quarterly benefit by more than 5%this year, which should provide investors with the degree of confidence in the company’s reluctance to reduce dividends. In fact, the latest action was 63 a straight year when Coca-Cola was the king of dividends.
Shares have 2.9% dividend yields, more than double S&P 500 Index 1.2%. Coca-Cola Dividend Payments with 77%payments, or the amount it benefit compared to net income seems safe.
As profit and higher dividends increase, Coca-Cola should provide good return after a decade.
Home Depot produces the most sales in the home improvement in the retail sector. Due to the universal presence and size, it is a popular place for professional contractors and people who are doing their own projects.
However, the company’s sales can fluctuate with the economy, especially housing. This is because when people feel sure about their situation and buy their homes, they usually renovate.
Recently, economic factors, such as high interest rates, have made a significant renovation more expensive. This hurt Home Depot sales. The fiscal first quarter of the same stores (CMS) decreased by 0.3%, which is due to lower traffic, although foreign currency translation effects were deprived of 0.7 percentage points. And the US compses rose only 0.2%. The company’s decreased profit per share decreased to $ 3.56 from $ 3.67 a year ago. The period ended on May 4th.