"While companies have been cutting dividends at an historic pace over the last 24 months, the fact is that there are still quality companies with long histories of paying dividends represent good long-term investments," says Chuck Carlson.
In his top-notch The DRIP Investor he says, "The seven stocks featured here have each been paying a dividend for over 100 years, have raised their dividend annually for at least the last quarter centur and offer direct-purchase plans."
"Coca-Cola (NYSE: KO) has a strong position among this group of dividend elites. The company has paid a dividend continuously since 1893. The ?rm has lifted its dividend annually for the last 47 years.
"The ?rm will continue to face challenges in some of its beverage markets. But Coca-Cola’s continued expansion outside the soda market should help results.
"Also, its strong overseas business should get a lift from the weak dollar and presence in emerging markets. The yield of well over 3% enhances total-return appeal. The stock should at least match the market over the next 12 months and should outperform during market weakness.
"Colgate-Palmolive (NYSE: CL) takes a back seat to no company when it comes to consistency and growth of its dividend. The ?rm has been paying a dividend since 1895, with the dividend increased annually for the last 46 years.
"Colgate-Palmolive has been an excellent stock over the last 18 months. These shares are trading near their all-time high; that is quite a feat compared to the major price declines experienced by most stocks over the same time period. A weak dollar should help pro?ts.
"While I don’t expect Colgate-Palmolive to be at the top of the leader board going forward — the stock is not cheap at 15 times 2010 earnings — I would expect these shares to put up decent total returns over the near and long term.
"Exxon Mobil (NYSE: XOM) usually appears on everyone’s list of dividend elites, for good reason. The firm has been paying a dividend since 1882 and has increased the dividend annually for the last 26 years. Strong cash ?ows should continue to fund a rising dividend stream; it currently yields 2.3%.
"The stock has been trading in a sideways range for about seven months. It is usually not among the leaders in the energy sector when the group is hot, but hold up quite well during down periods for oil stocks. I own the stock and appreciate its steady, consistent performance.
