This Dividend Growth Stock Just Raised Its Payout for a 24th Straight Year
Stocks that routinely increase their dividend payments can make for extremely valuable investments to hang on to for the long term because their payouts rise over time and can offset the effects of inflation.
One top dividend growth stock you may want to consider today is The J. M. Smucker Company (NYSE:SJM). Last week, it announced that it would be increasing its quarterly dividend by a couple of cents, from $1.08 to $1.10, which amounts to an increase of 2%. With the increase, the company’s dividend growth streak has extended to 24 years. The new quarterly dividend means that investors will be collecting $4.40 per share in dividends over an annual basis, which equates to a yield of 4.1% -- far higher than the S&P 500 average of 1.2%.
J. M. Smucker has been a fairly strong food company to invest in over the years. And in the trailing 12 months, it has generated revenue totaling $8.7 billion, with its operating income totaling nearly $1.7 billion – for an impressive operating margin of just under 19%.
With a vast array of brands covering coffee products, snacks, baked goods, and pet food, Smucker has many growth opportunities to tap into in the long run.
The stock is down around 4% this year. But with a beta of around 0.33, this is a low-volatility stock that can be appealing to investors who just want to invest in a good dividend growth stock.
Trading at less than 12 times its estimated future earnings, J. M. Smucker can make for a good income-generating investment to put into your portfolio. While you may not experience significant gains, it can be relied on for growing dividend income.
