Top Dividends Paying Companies  

Dividends are regular payments made to investors for the stocks they own. Not all public companies pay dividends but a lot do. Some pay annually, some quarterly and a  few pay monthly. So how do you choose the companies with the best dividends? Dividends are not always guaranteed, a company could decide to stop payouts. It is wise to look out for a  pattern of consistency, a sustainable payout ratio, and the overall health and of course how high is the dividend.

Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) has successfully raised dividends for the last 58 years. Solidifying its place on the exclusive Dividend king list. A list of companies that have successfully increased dividends for the past 50 years. Impressively, Johnson & Johnson did not only pay dividends during the pandemic but further raised dividends by 6.3% on April 14, 2020.  The healthcare company pays a quarterly dividend of $1.01 today, which yields 2.7%, higher than Apple and the average S&P 500 stock. Investing in 20 units of Johnson & Johnson shares will give a total of  $20.2 annually.

McDonald’s

Consistency sure is one of Mcdonalds’ (NYSE: MCD) strongest points. The fast-food giant has raised dividends every year since 1976 without faltering. Currently, McDonald’s pays an annual dividend of $5.16 per share, with a yield of 2.4%. Investing in 5 units will give you $25.8 annually. The fast food company is not doing badly with a 9% dividend growth rate over the last five years.

S&P Global

S&P Global (NYSE: SPGI), formerly known as McGrew Hill Financial, is a major player in financial analytics, information and research. The company is behind the S&P Global Ratings, S&P Global Market Intelligence and S&P Global Platts. S&P Global has paid a dividend each year since 1937 and is one of fewer than 25 companies in the S&P 500 that has increased dividends annually in the last 47 years. The company pays $2.68 per share as annual dividends.

Sherwin Williams

Sherwin Williams ( NYSE: SHW) is the largest paint and home improvement company in the world. Sherwin’s target market is professional painters and the company charges them a premium. Sherwin-Williams is a dividend aristocrat— the company has consistently paid dividends for more than 25 years. Not even the 9/11 attack or the housing crash of 2008 was enough to stop Sherwin. The paint company pays an annual dividend of $5.3. Buying 20 units of the company’s shares will give a total of $106 annually. A continued steady and continued increase is very likely as the paint company’s payouts cost only 27% of its earnings even with the 19% dividends increase in February 2020.

Chevron

The coronavirus recession hit the oil and gas sector hard and Chevron (NYSE: CVX) was no exception. Nonetheless, Chevron’s CEO assured investors that the company had no plans to cut dividends. The Oil and gas giant has raised dividends over the last 3 decades with the most recent increase in January, raising quarterly dividend by more than 8% to $1.29 per share. Investing in 5 units of shares will yield $6.45 quarterly and $19.35 annually.

Realty Income

Realty Income (NYSE: O) is one of the few companies with a monthly payout— a true investors delight. The real estate investment trust pays a monthly dividend of 0.234 per share. Buying 10 units of shares will give an investor $2.34 monthly and $51.48 yearly.  Realty has consecutively increased dividends annually for 26 years. Realty Income is diversified and operates in more than 50 industries, offering property leases to retail-focused businesses with strong financial health. Some of these companies include —Walgreens FedEx, 7-Eleven, AMC, Dollar General, Theatres, Walmart & Sam’s Club.

Procter & Gamble

Procter & Gamble (NYSE: PG) is one of the world’s largest consumer products companies. The company is a true dividend king with an impressive record of 63 consecutive annual payments. Procter & Gamble has a dividend yield of 2.6%. The consumer goods company not only paid dividends during the lockdown but increased its payout by 6% in April 2020, The company pays $3.16 as annual dividends investing in 15 units of shares is $47.4 annually.

Apple

 Apple (NASDAQ: AAPL) is the biggest and most profitable company in the United States.. The iPhone company currently pays a dividend of $0.205 a whopping 58% increase from the previous $0.13  in just five years.  So for 10 units of Apple shares you get $1.3 quarterly. Apple’s payouts cost the company a mere 20%. Considering the rapid growth ease of payments, Apple will most likely continue raising its dividends.