One other stock that should be on the list is Altria Group Altria (MO - Get Report). It frequently does not show up on charts like this because the 2008 spinoff 2008 spinoff of Philip Morris (PM - Get Report) distorts the picture, requiring a little more analysis. Basically, if you owned the stock in 2002 and you still hold it, you've done very well in income as well as capital appreciation.
With respect to income, when the spinoff of Philip Morris International was completed in March 2008, MO shareholders received one new share of PMI for every MO share they had. In 2002, MO was paying a dividend of $2.44 annually. Today the two companies combined are paying $5.16, for a picture perfect double.
Although there is no way to guarantee these companies will continue to raise their dividends. There are good reasons to believe that they will. Given all of the companies shown above have plenty of cash on their balance sheet, there are no fiscal hurdles to prevent them from raising dividends in the near term. Moreover, even during the financial crisis, the companies above continued to pay and increase their dividends.
At the time of publication the author held no positions in any of the stocks mentioned.This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts