Many investors are familiar with dividend-paying Singapore stocks such as REITs.
The common belief is that stocks in the US are more geared towards growth.
But you’d be surprised to learn that there is a crop of stocks in the US that has not only been churning out regular dividends but has also been raising them over decades.
These stalwarts have strong branding, a dominant market share and distribute their products all over the globe.
Their dividend track record is a testament to the strength of their business model and is a great indication that they can continue raising their dividends for the foreseeable future.
Here are three US stocks with such characteristics that you can be confident will pay you a stream of passive income for life.
Kimberly-Clark (NYSE: KMB)
Kimberly-Clark is a consumer goods company that was established in 1872.
It owns famous brands such as Scott, Huggies, and Cottonelle and sells a wide variety of baby, feminine and adult care products such as napkins, diapers and tissue paper in more than 175 countries.
Just this month, the company declared a quarterly dividend of US$1.16 per share, representing 88 consecutive years of dividend payments.
The consumer goods company has also increased its dividend for the last five decades without a pause.
Kimberly-Clark’s business has stayed resilient, with the company reporting a respectable set of results for 2022’s second quarter (2Q2022).
Net sales rose 7% year on year to US$5.1 billion.
However, gross profit only inched up 3% year on year as inflation pushed up the cost of goods for the company.
Net profit increased 8% year on year to US$437 million.
Free cash flow generated for the first six months of 2022 (1H2022) climbed 22.5% year on year to US$474 million.
The company estimates that its earnings per share will be in the range of US$5.60 to US$6 for 2022, and has guided for it to be at the lower end of the range due to cost pressures.
At the lower end of the range or US$5.60, this is a 4.7% year on year increase over FY2021’s US$5.35.
Procter & Gamble (NYSE: PG)
Procter & Gamble, or P&G, is a consumer goods company that sells its products in more than 180 countries.
Established in 1837, the company sells products such as shampoo, toothpaste, razors, deodorants, and baby wipes under famous brands such Oral-B, Head & Shoulders, Pantene, and Gillette.
P&G has declared a quarterly dividend of US$0.9133 per share, its 66th consecutive year of increase.
The consumer goods giant has paid out a dividend for an amazing 132 consecutive years.
P&G had just released its financial results for the fiscal year 2022 (FY2022) which ended on 30 June.
Net sales rose 5% year on year to US$80.2 billion but gross profit dipped by 3% year on year due to a higher cost of goods.
Higher non-operating income helped net profit rise 3% year on year.
Free cash flow remained healthy at US$13.6 billion, though it declined by 13% year on year from FY2021’s US$15.6 billion.
For FY2023, P&G expects sales to be flat year on year to up around 2%, while earnings per share are projected to be flat or up 4% year on year.
Stanley Black & Decker (NYSE: SWK)
Stanley Black & Decker, established in 1843, is a diversified industrial company that is known for its wide range of power tools and fasteners.
The company holds the top spot in the tools and storage industry based on revenue and is number #2 in security services.
The industrial company boasts an unbroken 146-year dividend payment track record and has recently increased its quarterly dividend from US$0.79 to US$0.80 per share.
This increase marks the 55th consecutive year that Stanley, Black & Decker has raised its dividend.
For 1H2022, the company reported a 17.6% year on year increase in revenue to US$8.8 billion.
However, net profit plunged by 72.2% year on year to US$262.9 million due to a sharp jump in the cost of sales and expenses along with asset impairment and restructuring charges.
The company is implementing a global cost reduction program that will deliver US$1 billion in cost savings by the end of 2023.
It also completed security divestments in July that brought in US$4.1 billion in cash, and has reached an agreement to sell its oil and gas business to further transform its portfolio.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
