Investors want peace of mind and an attractive total return when they park their money in stocks.
Reputable, blue-chip stocks can offer assurance that the business can survive different economic cycles and still emerge relatively unscathed.
Aside from providing peace of mind, such stocks also dish out a steady stream of increasing dividends that act as a great source of passive income.
We highlight four attractive US stocks that possess a strong brand and market share and have also been increasing their dividends over the years.
Mastercard (NYSE: MA)
Mastercard is a market leader in the payments space and acts as a middleman that connects banks and vendors with their customers.
As of the second quarter of 2024 (2Q 2024) ending 30 June 2024, the company had 3.4 billion debit and credit cards in issue.
Mastercard reported a robust set of earnings for the first half of 2024 (1H 2024).
Revenue rose 10.8% year on year to US$13.3 billion while operating profit improved by 12.5% year on year to US$7.6 billion.
Net profit came in at US$6.3 billion, up 20.4% year on year.
The business also generated healthy positive free cash flow of US$4.1 billion, up 2.6% from the US$4 billion churned out a year ago.
The payments giant saw gross dollar volume rise by 9% year on year for 2Q 2024 to US$2.4 trillion, accompanied by an 11% year-on-year growth in transaction volume to 39.4 billion.
The business paid out a quarterly cash dividend of US$0.66 per share, up nearly 15% year on year.
Mastercard’s dividend has been increasing without fail since 2014 when it paid out a quarterly dividend of US$0.11.
The company recently expanded its cybersecurity services with the acquisition of Recorded Future for US$2.65 billion.
Recorded Future is the world’s largest threat intelligence company with more than 1,900 customers across 75 countries.
McDonald’s (NYSE: MCD)
McDonald’s should be a household name to most people, being known as the famous “Golden Arches” because of its recognisable logo.
The company is one of the largest fast-food chains in the world with more than 40,000 locations in over 100 countries.
McDonald’s delivered a resilient performance for 1H 2024 despite persistent cost pressures caused by surging inflation.
Revenue inched up 2% year on year to US$12.7 billion but operating profit stayed flat year on year at US$5.6 billion because of higher expenses.
Net profit dipped by 4% year on year to US$4 billion as the business incurred higher finance costs (+13% year on year).
Despite the dip, McDonald’s continued to generate a positive free cash flow of US$2.9 billion.
The fast-food behemoth’s latest quarterly dividend stood at US$1.67 per share, a 10% year-on-year increase from the US$1.52 paid out in the previous year.
McDonald’s is advancing on its “Accelerating the Arches” strategy and boasts 166 million active 90-day users on its app and platform.
The company will continue to find ways to engage this user base to drive more promotional spending through loyalty rewards.
Colgate-Palmolive (NYSE: CL)
Colgate-Palmolive is a consumer goods giant which sells its products in more than 200 countries worldwide.
The company owns famous brands such as Colgate, Palmolive, Meridol, Protex, Ajax, and Murphy.
The consumer goods company boasts the number one market share in toothpaste, liquid hand soap, and manual toothbrushes with a number two position in the mouthwash and hand dishwashing segments.
Colgate-Palmolive released a strong set of earnings for 1H 2024.
Revenue edged up 5.5% year on year to US$10.1 billion.
Operating profit climbed 13.6% year on year to US$2.1 billion while net profit soared 61.8% year on year to US$1.4 billion.
The business generated a positive free cash flow of US$1.4 billion for 1H 2024, up nearly 29% year on year.
Colgate-Palmolive declared and paid out a quarterly dividend of US$0.50, up slightly from the US$0.48 it paid out a year ago.
The business has paid uninterrupted dividends on its stock since 1895.
Management will continue with the company’s strategy of driving organic sales growth while introducing innovative new products to cement customer loyalty.
The company will also drive better productivity to enable margin expansion while generating healthy free cash flow.
Tyson Foods (NYSE: TSN)
Tyson Foods is a food company selling chicken and other meats through famous brands such as Tyson, Jimmy Dean, Ball Park, and Wright.
The company delivered a stellar performance for the first nine months of fiscal 2024 (9M FY2024) ending 30 June 2024.
Revenue crept up just 0.5% year on year to US$39.7 billion but operating profit (excluding impairment charges) leapt 71% year on year to US$884 million.
Core net profit surged 77.2% year on year to US$443 million.
The food company also churned out a positive free cash flow of US$1.1 billion for 9M FY2024, a reversal from the negative free cash flow of US$135 million a year ago.
The business paid out a quarterly dividend of US$0.49 on its Class A common stock, up from US$0.48 in the prior year.
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Disclosure: Royston Yang owns shares of Mastercard.
