What makes a stock reliable?
Reliability is a pertinent consideration for investors who want to ensure their money is safe.
Companies with strong market shares in their respective industries, along with a solid brand name and recognition, can give investors the peace of mind they need.
What’s more, a stock which pays a consistent dividend provides further assurance that the business is generating healthy cash flows.
Here are five dependable US growth stocks that are dishing out increasing dividends.
PepsiCo (NASDAQ: PEP)
PepsiCo is a global food and beverage (F&B) company that manufactures and distributes its products to more than 200 countries worldwide.
Its portfolio contains many famous brands such as Pepsi-Cola, Mountain Dew, Lay’s, Doritos and Gatorade.
The company’s long history and portfolio of billion-dollar brands make it a veritable food and beverage behemoth that investors can count on during tough times.
PepsiCo reported steady revenue and earnings growth for the first quarter of 2024 (1Q 2024).
Revenue edged up 2.3% year on year to US$18.3 billion while operating profit increased by 3.3% year on year to US$2.7 billion.
Net profit improved by 5.7% year on year to US$2 billion.
The F&B giant upped its quarterly dividend by 7% year on year to US$1.355 per share, taking its annualised dividend to US$5.42.
This increase marks the company’s 52nd consecutive annual dividend increase.
Procter & Gamble (NYSE: PG)
Procter & Gamble, or P&G, is a global consumer goods company that manufactures and markets a wide range of hair and skin care, baby care, body care, home care and oral care products.
Some of its famous brands include Pantene (shampoo), Gillette (grooming), Oral-B (oral care), and Pampers (baby care).
P&G reported a steady set of earnings for the first nine months of fiscal 2024 (9M FY2024) ending 31 March 2024.
Sales increased by 3.3% year on year to US$63.5 billion with operating profit rising 4.9% year on year to US$14.7 billion.
Net profit came in at US$11.7 billion, 4.2% higher than the US$11.3 billion in the prior year.
The consumer goods giant also generated a positive free cash flow of US$11.6 billion for 9M FY2024, 26% above the US$9.2 billion it churned out a year ago.
The company declared a quarterly dividend of US$1.0065, up 7% year on year, representing its 68th consecutive dividend increase.
Tractor Supply Company (NASDAQ: TSCO)
Tractor Supply is the largest rural lifestyle retailer in the US, employing more than 50,000 staff and selling a wide variety of products for homeowners, farmers, gardeners, and pet enthusiasts.
The company operated 2,233 Tractor Supply stores in 49 states as of 30 March 2024 along with 202 Petsense pet stores.
Tractor Supply reported a 2.9% year-on-year increase in sales to US$3.4 billion for 1Q 2024.
Operating and net profit rose 7.6% and 8.2%, respectively, to US$263.1 million and US$198.2 million.
The rural lifestyle retailer also generated a positive free cash flow of US$100.2 million for the quarter, reversing the negative free cash flow in the previous year.
The company declared and paid out a quarterly dividend of US$1.10 per share, up 6.8% from a year ago.
This increase marks the 14th consecutive dividend increase since Tractor Supply started paying out dividends in 2010.
Mastercard (NYSE: MA)
Mastercard is a payment processing company offering a range of payment transaction processing services and other payment-related services.
As of 1Q 2024, the company had close to 3.4 billion debit and credit cards in issue.
Mastercard reported a robust set of earnings for 1Q 2024 as net revenue rose 10% year on year to US$6.3 billion.
Operating profit climbed 15% year on year to US$3.6 billion while net profit surged by 28% year on year to US$3 billion.
The payments company also generated a positive free cash flow of US$1.3 billion for the quarter.
Last December, Mastercard raised its quarterly dividend by 16% year on year from US$0.57 to US$0.66, bringing its annualised dividend per share to US$2.64.
Parker-Hannifin Corporation (NYSE: PH)
Parker-Hannifin is an engineering company and a market leader in motion and control technologies.
For more than a century, the company has served customers in a wide range of industrial and aerospace markets.
For 9M FY2024, Parker-Hannifin’s sales increased by 5.5% year on year to US$14.7 billion.
Net profit soared nearly 50% year on year to US$2.1 billion.
The business also generated a positive free cash flow of US$1.9 billion, 22.4% above the US$1.5 billion that was generated in 9M FY2023.
The company recently raised its quarterly dividend by 10% year on year to US$1.63 per share.
This increase marks a record 68 consecutive years of dividend increases for the company, putting it among just five companies within the S&P 500 Index with such a long track record.
Attention Growth Investors: Our latest report, “The Rise of Titans,” gives you a front-row seat on the 7 most influential US stocks today. If you’re passionate about tech and growth, you can’t go wrong with our research. Downloading this FREE report could be the most strategic move you make this year. Click here to get started now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Mastercard and Tractor Supply Company.
