However, if a company is generating solid earnings growth, then taking a lower yield today may not matter a few years from now. But how do you find companies with real, long-term dividend growth potential?
We start by looking for enduring brand names that are highly profitable and generate loads of cash. Here are seven of my favorite blue chip dividend stocks that have good yields and have been increasing their payouts for at least 40 straight years.
These are the results...
Emerson Electric -- Yield: 3.47%
Emerson Electric (NYSE:EMR) employs 110,800 people, generates revenue of $22,304.00 million and has a net income of $2,733.00 million. The current market capitalization stands at $35.60 billion.Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,185.00 million. The EBITDA margin is 18.76% (the operating margin is 14.67% and the net profit margin 12.25%).
Financials: The total debt represents 30.98% of Emerson Electric assets and the total debt in relation to the equity amounts to 84.67%. Due to the financial situation, a return on equity of 29.78% was realized by Emerson Electric.
Twelve trailing months earnings per share reached a value of $2.77. Last fiscal year, Emerson Electric paid $1.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.67, the P/S ratio is 1.58 and the P/B ratio is finally 4.43. The dividend yield amounts to 3.47%.
Stock Charts:
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| Long-Term Stock Price Chart of Emerson Electric (EMR) |
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| Long-Term Dividend Payment History of Emerson Electric (EMR) |
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| Long-Term Dividend Yield History of Emerson Electric (EMR) |
Altria Group -- Yield: 3.41%
Altria Group (NYSE:MO) employs 8,800 people, generates revenue of $25,434.00 million and has a net income of $5,243.00 million. The current market capitalization stands at $128.53 billion.Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,873.00 million. The EBITDA margin is 34.89% (the operating margin is 31.98% and the net profit margin 20.61%).
Financials: The total debt represents 39.71% of Altria Group assets and the total debt in relation to the equity amounts to 448.58%. Due to the financial situation, a return on equity of 177.50% was realized by Altria Group.
Twelve trailing months earnings per share reached a value of $2.88. Last fiscal year, Altria Group paid $2.17 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.00, the P/S ratio is 5.09 and the P/B ratio is finally 45.09. The dividend yield amounts to 3.41%.
Stock Charts:
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| Long-Term Stock Price Chart of Altria Group (MO) |
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| Long-Term Dividend Payment History of Altria Group (MO) |
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| Long-Term Dividend Yield History of Altria Group (MO) |
Coca-Cola -- Yield: 3.16%
Coca-Cola (NYSE:KO) employs 123,200 people, generates revenue of $44,294.00 million and has a net income of $7,366.00 million. The current market capitalization stands at $190.07 billion.Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,075.00 million. The EBITDA margin is 27.26% (the operating margin is 19.70% and the net profit margin 16.63%).
Financials: The total debt represents 49.02% of Coca-Cola assets and the total debt in relation to the equity amounts to 172.64%. Due to the financial situation, a return on equity of 26.31% was realized by Coca-Cola.
Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, Coca-Cola paid $1.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.23, the P/S ratio is 4.31 and the P/B ratio is finally 7.49. The dividend yield amounts to 3.16%.
Stock Charts:
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| Long-Term Stock Price Chart of Coca-Cola (KO) |
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| Long-Term Dividend Payment History of Coca-Cola (KO) |
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| Long-Term Dividend Yield History of Coca-Cola (KO) |
Procter & Gamble -- Yield: 3.08%
Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $65,299.00 million and has a net income of $10,027.00 million. The current market capitalization stands at $231.01 billion.Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17,439.00 million. The EBITDA margin is 26.71% (the operating margin is 20.58% and the net profit margin 15.36%).
Financials: The total debt represents 24.07% of Procter & Gamble assets and the total debt in relation to the equity amounts to 53.36%. Due to the financial situation, a return on equity of 16.45% was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.49. Last fiscal year, Procter & Gamble paid $2.66 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.83, the P/S ratio is 3.56 and the P/B ratio is finally 4.12. The dividend yield amounts to 3.08%.
Stock Charts:
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| Long-Term Stock Price Chart of Procter & Gamble (PG) |
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| Long-Term Dividend Payment History of Procter & Gamble (PG) |
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| Long-Term Dividend Yield History of Procter & Gamble (PG) |
PepsiCo -- Yield: 2.77%
PepsiCo (NYSE:PEP) employs 263,000 people, generates revenue of $63,056.00 million and has a net income of $5,501.00 million. The current market capitalization stands at $155.62 billion.PepsiCo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,358.00 million. The EBITDA margin is 19.60% (the operating margin is 13.25% and the net profit margin 8.72%).
Financials: The total debt represents 47.78% of PepsiCo assets and the total debt in relation to the equity amounts to 279.16%. Due to the financial situation, a return on equity of 36.74% was realized by PepsiCo.
Twelve trailing months earnings per share reached a value of $3.55. Last fiscal year, PepsiCo paid $2.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.43, the P/S ratio is 2.48 and the P/B ratio is finally 13.04. The dividend yield amounts to 2.77%.
Stock Charts:
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| Long-Term Stock Price Chart of PepsiCo (PEP) |
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| Long-Term Dividend Payment History of PepsiCo (PEP) |
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| Long-Term Dividend Yield History of PepsiCo (PEP) |
PepsiCo -- Yield: 2.77%
PepsiCo (NYSE:PEP) employs 263,000 people, generates revenue of $63,056.00 million and has a net income of $5,501.00 million. The current market capitalization stands at $155.62 billion.PepsiCo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,358.00 million. The EBITDA margin is 19.60% (the operating margin is 13.25% and the net profit margin 8.72%).
Financials: The total debt represents 47.78% of PepsiCo assets and the total debt in relation to the equity amounts to 279.16%. Due to the financial situation, a return on equity of 36.74% was realized by PepsiCo.
Twelve trailing months earnings per share reached a value of $3.55. Last fiscal year, PepsiCo paid $2.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.43, the P/S ratio is 2.48 and the P/B ratio is finally 13.04. The dividend yield amounts to 2.77%.
Stock Charts:
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| Long-Term Stock Price Chart of PepsiCo (PEP) |
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| Long-Term Dividend Payment History of PepsiCo (PEP) |
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| Long-Term Dividend Yield History of PepsiCo (PEP) |
Wal-Mart Stores -- Yield: 2.73%
Wal-Mart Stores (NYSE:WMT) employs 2,300,000 people, generates revenue of $482,130.00 million and has a net income of $15,080.00 million. The current market capitalization stands at $225.42 billion.Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,559.00 million. The EBITDA margin is 6.96% (the operating margin is 5.00% and the net profit margin 3.13%).
Financials: The total debt represents 25.07% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 62.12%. Due to the financial situation, a return on equity of 18.15% was realized by Wal-Mart Stores.
Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, Wal-Mart Stores paid $1.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.13, the P/S ratio is 0.47 and the P/B ratio is finally 2.88. The dividend yield amounts to 2.73%.
Stock Charts:
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| Long-Term Stock Price Chart of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |
Johnson & Johnson -- Yield: 2.62%
Johnson & Johnson (NYSE:JNJ) employs 127,100 people, generates revenue of $70,074.00 million and has a net income of $15,409.00 million. The current market capitalization stands at $326.78 billion.Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24,918.00 million. The EBITDA margin is 35.56% (the operating margin is 27.39% and the net profit margin 21.99%).
Financials: The total debt represents 14.89% of Johnson & Johnson assets and the total debt in relation to the equity amounts to 27.91%. Due to the financial situation, a return on equity of 21.87% was realized by Johnson & Johnson.
Twelve trailing months earnings per share reached a value of $5.37. Last fiscal year, Johnson & Johnson paid $2.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.42, the P/S ratio is 4.78 and the P/B ratio is finally 4.74. The dividend yield amounts to 2.62%.
Stock Charts:
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| Long-Term Stock Price Chart of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Payment History of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Yield History of Johnson & Johnson (JNJ) |