There are not many things in life that are certain, especially when it comes to investing.
But as an income-seeking investor, you can turn your attention to a bunch of companies with long track records of paying out increasing dividends.
These US companies have strong competitive moats and are reliable dividend payers.
Their dominant position within their respective industries also makes them resilient to recessions and economic downturns.
Here are four stocks that have increased their dividends unfailingly for a quarter of a century or more.
Linde (NYSE: LIN)
Linde is a global industrial gases and engineering company that serves a variety of industries such as food and beverage, healthcare, manufacturing, and metals and mining.
The company’s industrial gases are used in many applications such as oxygen in hospitals and speciality gases for electronics manufacturing.
Back in February, Linde announced a 10% year on year increase in its quarterly dividend to US$1.17 per share.
This increase marks the 29th consecutive year that the company has upped its dividend.
Linda reported an encouraging set of earnings for its fiscal 2022 first quarter (1Q2022).
Sales increased by 13% year on year to US$8.2 billion while operating profit increased by the same quantum to US$1.5 billion.
Net profit climbed nearly 20% year on year to US$1.2 billion.
Despite an uncertain operating environment, Linde is raising its outlook and has guided for earnings per share of between US$11.65 to US$11.90, up 9% to 11% year on year, for 2022.
Medtronic (NYSE: MDT)
Medtronic is a global healthcare technology company that manufactures a wide range of medical devices and equipment for hospitals, clinics, and healthcare institutions.
The company’s board recently raised the quarterly dividend to US$0.68 per share, with annualised dividend amounting to US$2.72, an 8% year on year increase.
This marks the 45th consecutive year that Medtronic has increased its dividend.
For its fiscal 2022 (FY2022) ended 30 April, Medtronic reported a 5.2% year on year increase in revenue to US$31.7 billion.
Its Cardiovascular division took up the lion’s share of total revenue at 36%, while Medical Surgery made up 28.8% and Neuroscience comprised 27.7%.
Operating profit jumped by 28.3% year on year to US$5.7 billion while net profit surged by nearly 40% year on year to US$5 billion.
Medtronic spent a total of US$2.7 billion in research and development for FY2022 and has minority investments and strategic partnerships in more than 75 companies as tuck-in acquisitions.
In the last 12 months, the company saw more than 200 product approvals for a variety of medical devices and accessories, alluding to its comprehensive product portfolio.
Caterpillar (NYSE; CAT)
Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
Just last month, the company raised its quarterly dividend by 8% year on year to US$1.20 per share, marking its 28th consecutive year of increase.
For 1Q2022, Caterpillar reported a 14% year on year boost in sales to US$13.6 billion, driven by higher sales volume as demand for equipment and services increased.
However, operating profit inched up just 2.3% year on year to US$1.86 billion due to higher cost of goods sold and research and development expenses.
Net profit remained flat year on year at US$1.54 billion.
Caterpillar plans to implement price increases to offset the increase in manufacturing costs and expects to see margin improvement in the second half of this year.
Kimberly-Clark (NYSE: KMB)
Kimberly-Clark is a consumer goods company with products that are sold in more than 175 countries.
The company manufactures family, baby and feminine care products such as tissues, sanitary pads, diapers, and paper napkins under famous brands Kleenex, Kotex, Cottonelle, and Huggies.
Kimberly-Clark recently raised its quarterly dividend from US$1.14 per share to US$1.16 and has hit a milestone where its dividend has increased without fail for five decades.
Net sales for 1Q2022 saw a 7% year on year increase to US$5.1 billion, but operating profit dipped by 10% year on year to US$693 million on a higher cost of goods.
Net profit similarly tumbled by 10% year on year to US$523 million.
The company’s near-term profits will be impacted by headwinds such as cost inflation and supply chain snarls caused by the Russia-Ukraine war.
However, it has a strategy to steadily grow its portfolio of iconic brands and expand its market presence.
Kimberly-Clark’s track record speaks for itself and investors can look forward to continued dividend increases in future years.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
