5 Companies with a Long String of Dividend raises – (SO, TEVA, UL, NUE, GWW)

Many of you may have seen when the stock price trends downward, the company’s capitalization also moves down. A good dividend return helps the stock to maintain stability in the price because it gathers attraction of institutional and wealthy private investors trying to find stable income and tax advantages associated with dividend income.

You may not know that one of the major factors to consider while preparing a stable dividend portfolio is the durability of the dividend. As a desired feature, stability also maintains a higher value placed upon it. Companies with stable dividend policy provide constant recurring income for the investors in the form of regular dividends and are best for investors who prefer relatively lower risk in their equity portfolio. The share prices of such dividend stocks also have a tendency to be less volatile as their corporate results are rather constant regardless of the economic cycles.

The Southern Company (NYSE:SO) annual dividend yield stands at 4.50% and maintains a dividend payout ratio of 75.23%. The stock has a dividend of $1.96 annually. SO shares traded in the range of $41.75 – $48.59 in the last 52 weeks. SO operates as an electric utility company. It is involved in the generation, transmission, and distribution of electricity through coal, nuclear, oil and gas, and hydro resources.

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) develops, manufactures, and sells pharmaceutical products worldwide. Teva Pharmaceutical Industries Ltd pays a dividend of $1.03 annually. The company has an annual dividend yield of 2.55% and has a dividend payout ratio at 42.89%. Shares of TEVA have been floating in the range of $37.40 – $46.65 in the last 52 weeks.

Unilever plc (ADR) (NYSE:UL) has an annual dividend of $1.23 while keeping its dividend yield at 23.20%. The company maintains a dividend payout ratio of 63.03%. Shares of UL have been trading in the range of $30.84 – $39.03 in last 52 weeks. UL operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas.

Nucor Corporation (NYSE:NUE) shares have been trading in the range of $34.23 – $45.75 in the last 52 weeks. The company pays a dividend of $1.46 annually and has a dividend payout ratio of 92.70%. The stock maintains an annual dividend yield of 3.55%. NUE together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally.

W.W. Grainger, Inc. (NYSE:GWW) engages in the distribution of maintenance, repair, and operating supplies, as well as other related products and services for businesses and institutions primarily in the United States and Canada. W.W. Grainger, Inc pays a dividend of $3.20 annually. The stock has an annual dividend yield of 1.65% and maintains a dividend payout ratio of 30.47%. Shares of GWW have been floating in the range of $172.50 – $221.84 in the last 52 weeks.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.