At a time when it seems every dividend announcement is bad news, there are still companies that have maintained a history of increasing dividends, according to Chuck Carlson.
In his The DRIP Investor, he looks at the "dividend elite" -- stocks that have boosted their payouts for at least 35 years. Among these, he also highlights one favorite, Becton Dickinson (NYSE: BDX).
"The table below lists companies that, according to Standard & Poor’s, have increased their dividends annually for at least 35 years," Carlson says.
Note that each of the stocks listed below offers a direct-purchase plan whereby any investor may buy shares directly, the ?rst share and every share:
- C.R. Bard (NYSE: BCR)
- Becton Dickinson (NYSE: BDX)
- Dover (NYSE: DOV)
- Emerson Electric (NYSE: EMR)
- Eli Lilly (NYSE: LLY)
- McGraw-Hill (NYSE: MHP)
- PPG Industries (NYSE: PPG)
- Stanley Works (NYSE: SWK)
- Target (NYSE: TGT)
Among the stocks on the list, Carlson likes some of the health-care names, especially Becton, Dickinson. The company markets medical supplies, devices, laboratory equipment, and diagnostic products.
"The ?rm is one of the few that should post higher pro? ts in 2009. Per-share pro?ts in ?scal 2009 ending in September are expected to grow 11% to $4.93 per share," Carlson says.
Becton, Dickinson is one of the rare companies where analysts have actually been increasing their 2009 earnings estimates over the last 90 days, he notes.
"To be sure, there is a lot of uncertainty surrounding health-care stocks and the potential impact on reimbursements due to new leadership in the White House. Health-care stocks, including Becton, Dickinson, sold off sharply earlier this year," he adds.
"The stock is down roughly 27% from its 52-week high of $90. Becton, Dickinson trades at 13 times the ? scal 2009 estimate, a reasonable multiple to pay for a company that has shown such consistent growth."
While health-care stocks may be more volatile going forward, Becton, Dickinson, yielding 2%, offers one of the better investments in the group, according to Carlson.
"The company has a very user-friendly DRIP. Minimum initial investment is $250. The firm will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $50 for ?ve consecutive months."
