Now, a fellow often finds himself in a bit of a pickle when contemplating the stock market in these, shall we say, interesting times. Valuations are looking rather top-heavy, the economic outlook is a bit like a cloudy Tuesday, and finding investments one can rely on without a constant fret is proving a dashedly difficult task. A chap wants a bit of peace of mind, doesn’t he? Something to keep the wolf from the door and allow for a spot of afternoon tea without worrying about the Dow Jones.
But fear not! Even in these somewhat turbulent waters, there are still stocks that offer a dependable income, a sort of financial cushion, if you will. And what’s more, they do so with a yield that puts the market average to shame. Two particularly promising specimens, both offering a dividend payout considerably more generous than the S&P 500’s modest 1.1%, are AbbVie (ABBV +1.22%) and Coca-Cola (KO 0.11%). A truly agreeable pair, wouldn’t you say?
Let us delve, then, into what makes these dividend-paying chaps stand out from the crowd.
1. AbbVie: A Pharmaceutical Pillar
AbbVie, you see, sprang forth from the venerable Abbott Laboratories back in 2013, and has been consistently increasing its dividend ever since. A most commendable trait, wouldn’t you agree? And if one were to trace its lineage back through Abbott, it would reveal a truly remarkable record – a Dividend King, having raised its payout annually for a staggering fifty years! A feat of financial fortitude, indeed.
The increases haven’t been timid, either. Back in 2021, investors were receiving $1.30 per share each quarter. Over the subsequent five years, AbbVie has boosted that figure by a healthy 33%, to $1.73 today. This translates to a current yield of 3.2% – a most satisfactory return, wouldn’t you say?
Now, some might raise an eyebrow at the payout ratio, which currently sits above 100% due to a few recent acquisitions. However, this is a bit of a red herring, you see. The company’s free cash flow over the last twelve months totaled nearly $20 billion – a sum considerably larger than the $11.5 billion paid out in dividends. A comfortable margin, allowing for continued generosity, if you will.
AbbVie boasts a diverse portfolio of products, contributing to its consistently strong performance. And it has been diligently adding to its pipeline through strategic acquisitions, setting the stage for further growth in the years to come. Its low beta value of 0.35 is another feather in its cap, indicating a relatively stable stock price. In fact, while the S&P 500 was taking a bit of a tumble in 2022 (down 19%), shares of AbbVie actually rose by more than 19%! A most encouraging sign, wouldn’t you agree?
All in all, AbbVie appears to be a rock-solid income investment – a dependable companion for both the short and long term.
2. Coca-Cola: A Timeless Tonic
If one were to mention dividend investing, Coca-Cola would undoubtedly spring to mind. Another Dividend King, having raised its annual payout for an impressive sixty-three consecutive years! A truly remarkable achievement, wouldn’t you say? Over the past five years, it has grown its payout by 24% – a more modest pace than AbbVie’s, perhaps, but still a solid rate that helps retirees keep pace with the rising cost of biscuits and tea.
This is another stock that doesn’t tend to get ruffled easily, boasting a beta of 0.39. And in 2022, its share price actually rose by over 7%, defying the broader market decline. A testament to its resilience, wouldn’t you say?
Coca-Cola has proven adept at navigating inflationary pressures, managing to raise prices without significantly impacting demand. While sales haven’t exactly been soaring, it has managed to steadily increase its top line by 3% in 2024 and 6% the year before. This steady growth is precisely what investors are looking for – a dependable stream of income that can be counted on for years to come.
Its payout ratio currently sits at around 67%, leaving ample room for future increases. All in all, Coca-Cola appears to be a stellar investment for risk-averse investors who simply want to collect a dividend and not worry about the vagaries of the market. A most sensible approach, wouldn’t you agree?
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2026-01-22 18:52