For many investors, a key factor in their portfolio strategy is to acquire solid companies with a strong track record of paying dividends.
While receiving regular dividend income is desirable for many, in the current economic environment receiving a dividend yield above the interest rate paid on a bank deposit account is also a key motivation.
Furthermore, a company with a long history of maintaining dividend payments suggests the company has a sustainable business model which hopefully implies a lower risk of permanent capital loss.
Thanks to a recent report by listed investment company (LIC) Bki Investment Co Ltd (ASX: BKI), I recently highlighted three stocks which could very well be the three best dividend shares of all time.
That same report also noted a further eight stocks which had managed to maintain or increase their dividend every year since 2000. In fact, every other stock in the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) that was listed in 2000 and remains listed today has cut its dividend at some point!
Here are the eight champions:
- ARB Corporation Limited (ASX: ARB)
- Blackmores Limited (ASX: BKL)
- Brickworks Limited (ASX: BKW)
- Carindale Property Trust (ASX: CDP)
- CSL Limited (ASX: CSL)
- Sonic Healthcare Limited (ASX: SHL)
- Seven Group Holdings Ltd (ASX: SVW)
- Telstra Corporation Ltd (ASX: TLS)
Given many of the above stocks wouldn't be classified as "blue chip", it's quite likely that many of the above eight stocks are not on the radar of income-seeking investors yet arguably they should be.
With the exception of Seven Group which is facing significant headwinds from the company's dual exposure to the mining services sector and the free to air television sector, the outlook for the remaining seven companies to either maintain or grow their dividends looks sound.
For investors looking for high quality, sustainable income stocks, these seven could be a good starting point.
