Long term dividend investors should look for firms that have demonstrated long-term commitment to growing shareholder wealth and providing shareholder income. They should find the highest dividend yields for the long term by waiting to buy them attractive prices.
Prices change much faster than long-term track records. Thus, it is a good idea to keep firms with great track records on your radar so that you are ready to swoop in if their prices drop. A list of companies which have impressive long-term dividend and return on equity (ROE) histories is provided below:
Great Northern Iron Ore Properties (GNI) recently traded at $110.98 per share. At this price level, the stock has a 11.7% dividend yield. For 10 out of the past 10 fiscal years, a share of GNI paid a total of $88.75 in dividends. Of these dividend payments, a total of $52.25 were paid in the last five years.
GNI shareholders have suffered a -15.8% drop in share price over the past year. At present, shares of this microcap stock trade at a price-to-book ratio of 13.6, a price-to-earnings multiple of 7.8, and a price-to-sales multiple of 6.7 (trailing twelve months). Over the past decade shareholders savored a 98.6% average annual return on equity.
Kellogg Company (K) recently traded at $48.69 per share. At this price level, the stock has a 3.5% dividend yield. For 10 out of the past 10 fiscal years, a share of K paid a total of $11.73 in dividends.
K shareholders have sustained a -1.6% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 7.6, a price-to-earnings multiple of 15.0, and a price-to-sales multiple of 1.3 (trailing twelve months). Over the past decade shareholders savored a 56.3% average annual return on equity.
Kimberly-Clark Corporation (KMB) recently traded at $70.2099 per share. At this price level, the stock has a 4.0% dividend yield. For 10 out of the past 10 fiscal years, a share of KMB paid a total of $18.52 in dividends. Of these dividend payments, a total of $11.44 were paid in the last five years.
KMB shareholders have savored a 16.1% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 5.3, a price-to-earnings multiple of 16.8, and a price-to-sales multiple of 1.3 (trailing twelve months). Over the past decade shareholders savored a 30.5% average annual return on equity.
Landauer Inc. (LDR) recently traded at $49.53 per share. At this price level, the stock has a 4.4% dividend yield. For 10 out of the past 10 fiscal years, a share of LDR paid a total of $17.55 in dividends.
LDR shareholders have endured a -14.0% drop in share price over the past year. At present, shares of this small-cap stock trade at a price-to-book ratio of 5.7, a price-to-earnings multiple of 19.1, and a price-to-sales multiple of 3.9 (trailing twelve months). Over the past decade shareholders savored a 39.2% average annual return on equity.
Lockheed Martin Corporation (LMT) recently traded at $76.29 per share. At this price level, the stock has a 5.2% dividend yield. For 10 out of the past 10 fiscal years, a share of LMT paid a total of $12.95 in dividends.
LMT shareholders have enjoyed a 13.8% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 8.4, a price-to-earnings multiple of 9.6, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 30.3% average annual return on equity.
Paychex Inc. (PAYX) recently traded at $29.26 per share. At this price level, the stock has a 4.4% dividend yield. For 10 out of the past 10 fiscal years, a share of PAYX paid a total of $8.16 in dividends. Of these dividend payments, a total of $5.71 were paid in the last five years.
PAYX shareholders have sustained a -1.5% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 6.9, a price-to-earnings multiple of 19.9, and a price-to-sales multiple of 5.0 (trailing twelve months). Over the past decade shareholders savored a 32.4% average annual return on equity.
PepsiCo, Inc. (PEP) recently traded at $63.98 per share. At this price level, the stock has a 3.2% dividend yield. For 10 out of the past 10 fiscal years, a share of PEP paid a total of $11.58 in dividends.
PEP shareholders have seen a 1.0% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 4.3, a price-to-earnings multiple of 16.0, and a price-to-sales multiple of 1.6 (trailing twelve months). Over the past decade shareholders savored a 34.8% average annual return on equity.
Southern Copper Corp. (SCCO) recently traded at $29.09 per share. At this price level, the stock has a 8.5% dividend yield. For 10 out of the past 10 fiscal years, a share of SCCO paid a total of $9.72 in dividends. Of these dividend payments, a total of $8.04 were paid in the last five years.
SCCO shareholders have suffered a -36.0% plunge in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 6.0, a price-to-earnings multiple of 10.8, and a price-to-sales multiple of 3.7 (trailing twelve months). Over the past decade shareholders savored a 31.9% average annual return on equity.
Sysco Corp. (SYY) recently traded at $28.9 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of SYY paid a total of $7.05 in dividends. Of these dividend payments, a total of $4.55 were paid in the last five years.
SYY shareholders have seen a 2.0% change in share price over the past year. At present, shares of this large-cap stock trade at a price-to-book ratio of 3.7, a price-to-earnings multiple of 14.7, and a price-to-sales multiple of 0.4 (trailing twelve months). Over the past decade shareholders savored a 32.6% average annual return on equity.
What valuations would be attractive? Cheap P/B ratios are 1.5 or below and cheap P/E ratios are at or below 10.0. At today’s prices, GNI, LMT, and SCCO are cheap enough to warrant more research.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing.
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