3 ‘Forever’ Dividend Aristocrats for Long-Term Investors

As savvy traders constantly on the lookout for the latest trends, it’s essential to recognize the power of passive income stocks — especially those that can be held indefinitely. In this strategy, Dividend Aristocrats stand tall, boasting at least 25 consecutive years of dividend growth. Let’s dive into three stellar Dividend Aristocrats that not only promise long-term stability but present compelling growth potential as well.

‘Forever’ Aristocrat #1: Procter & Gamble (PG)

Procter & Gamble (PG), with its extensive reach selling products in over 180 countries, is a titan in the consumer products arena. This titan features a treasure trove of notable brands including Pampers, Tide, Gillette, and Crest. In fiscal 2024, the company racked up around $84 billion in sales, showcasing resilient performance amid cost inflation.

Despite the headwinds, PG reported earnings per share (EPS) growth of 2% — from $1.37 to $1.40 — surpassing analysts’ expectations by $0.03. Notably, the company has provided a promising outlook for fiscal 2025, anticipating 3%-5% organic sales growth and 5%-7% EPS growth. Our projections forecast core EPS hitting $6.98. Such resilience stems from PG’s elite portfolio of brands, which grant them significant pricing power—a key to sustaining profitability in various market conditions.

In April 2024, Procter & Gamble raised its dividend by 7.0% to $1.0065 per quarter, marking its 68th consecutive year of dividend growth. With a current yield of 2.3%, buying into PG is not just a play for stability—it’s a route towards reliable income stream.

‘Forever’ Aristocrat #2: McDonald’s (MCD)

Since its founding in 1940, McDonald’s (MCD) has become a global phenomenon with a staggering 41,822 restaurants across 119 countries. This fast-food giant isn’t just about burgers; its strategic move to refranchise, where 95% of its locations are franchised or licensed, has transformed MCD into a powerhouse of efficiency and profit.

In Q2 2024, McDonald’s reported a slight dip in total revenue, clocking in at $6.49 billion, with diluted EPS dropping to $2.80. However, the company is channeling its focus towards enhancing operational efficiency under its “Accelerating the Arches” strategy, exploiting digital tools to enhance customer experience and increase sales. McDonald’s has sustained an impressive 10% average annual growth over the past decade, showcasing its ability to innovate and adapt.

With a 49-year streak of consecutive dividend increases, McDonald’s shares currently yield 2.3%. This stock not only exemplifies reliability but also leverages its global scale, brand recognition, and strategic real estate holdings to secure a competitive edge in the fast-food market. Investors who park their capital here can expect robust long-term returns.

‘Forever’ Aristocrat #3: Johnson & Johnson (JNJ)

Founded in 1886, Johnson & Johnson (JNJ) stands as a beacon of innovation in the healthcare sector. Employing around 132,000 individuals globally, the company expects over $89 billion in revenue for the year. With recent expansions — including the $13.1 billion acquisition of cardiovascular medical device company Shockwave Medical — JNJ showcases its commitment to growth.

In its recent Q2 2024 results, Johnson & Johnson reported a solid 4.3% revenue growth to $22.4 billion, outpacing expectations. The company’s adjusted EPS of $2.82 marked a slight increase from the previous year. Excluding Covid-19 vaccine sales, the revenue growth was an impressive 7.1%, bolstered by an 19% increase in oncology revenue driven by the popular drug Darzalex.

The company’s track record is nothing short of stellar, with an EPS growth rate of 6.3% over the last decade. They’ve shown remarkable resilience, maintaining growth even during economic downturns. Their recent dividend increase of 4.2% to $1.24 extends JNJ’s impressive dividend growth streak to 62 consecutive years, with a current yield of 3.1%. This is a stock for the long-haul that promises to provide security and consistency for income-seeking investors.

Final Thoughts

The market is always changing, but these three Dividend Aristocrats — Procter & Gamble, McDonald’s, and Johnson & Johnson — illustrate the beauty of holding stocks that can weather any economic storm. Each offers its own unique attributes: leading brands, extensive distribution networks, and reliable income streams. Whether you’re a seasoned trader or a new investor, these companies represent solid pillars upon which to build a passive income portfolio that stands the test of time.

Embrace the dividends, seize the momentum, and let’s ride the trends together!