The Dividend King Buy-and-Hold Strategy That Can Surge 100% in 10 Years

Dividend Kings are companies that person accrued their payments for astatine slightest the last 50 consecutive years. This dependable dividend maturation tin truly adhd up implicit the agelong term.

Several Dividend Kings person delivered a much than 100% total return implicit the past decade, including Coca-Cola (NYSE: KO), Johnson & Johnson (NYSE: JNJ), and Consolidated Edison (NYSE: ED). A simple, lower-risk strategy of buying and holding respective Dividend Kings could alteration you to treble your wealth successful the adjacent 10 years.

Coca-Cola accrued its dividend outgo by 5.2% earlier this year, extending its maturation streak to 63 years successful a row. The planetary beverage elephantine has delivered a astir 125% full instrumentality implicit the past decennary (8.4% annualized).

The institution is in a rock-solid position to proceed expanding its dividend successful the future. Coca-Cola's portfolio of beloved beverage products produces durable and increasing gross and earnings. The institution has grown its net astatine a 7% mean complaint implicit the past 5 years. Its semipermanent extremity is to organically turn its gross by 4% to 6% per twelvemonth portion delivering high-single-digit earnings-per-share growth.

The institution invests heavy successful merchandise innovation, marketing, and initiatives to summation productivity to thrust integrated growth. Additionally, Coca-Cola has a beardown equilibrium sheet, giving it ample fiscal capableness to marque acquisitions arsenic compelling opportunities arise. Nearly a 4th of the company's net maturation implicit the past decennary has come from acquisitions. With its dividend yielding astir 3% and its net connected way to turn astatine a high-single-digit rate, Coca-Cola could easy present a much than 100% full instrumentality implicit the adjacent 10 years.

Johnson & Johnson hiked its dividend outgo by 4.8% earlier this year. That enabled it to support gait with Coca-Cola successful extending its dividend maturation streak to 63 consecutive years. The healthcare elephantine has delivered an awesome full instrumentality exceeding 165% over the past decade (10.3% annualized).

The innovative medicines and aesculapian exertion institution has 1 of the healthiest fiscal profiles successful the world. Johnson & Johnson has a pristine AAA bond rating, 1 of lone 2 nationalist companies with a cleanable recognition rating. The institution besides produces resilient and steadily rising earnings.