3 Dividend Stocks Kid Gratitude
1.25%March 27 | MyPlanIQ portfolio symbol P_36985

As we explore the world of dividend bearing stocks, Austin Smith of the Motley Fool brings us back to the dividend aristocrats on which you can build a long term portfolio. These are normally drawn from a small list of blue chip companies. This list draws from this list.

Austin quotes Warren Buffett: "The goal is to find companies that will be around for 20 years and offer a margin of safety."


Austin picked three companies with a combined 151-year history of not only paying but also raising dividends.


  • 3M (MMM) is a $60 billion manufacturer of more than 50,000 products.
  • Johnson & Johnson (JNJ) the maker of all-things-health and payer of a 3.5% dividend that's been raised for 49 years.
  • Coca-Cola (KO) and its 3% dividend.

None of these companies need much introduction and I own 3M stock myself.

I have been looking at the
DRiP website where they keep track of dividend champions for extra data and I extract a small piece of their data. Please note that I have not double checked their numbers which were updated as of the end of February 2012.

Company Symbol Industry Yrs Yield Graham
3M Company MMM Conglomerate 54 2.69 60.8
Johnson & Johnson JNJ Drugs/Consumer Prod. 49 3.50 60.5
Coca-Cola Company KO Beverages-Non-alcoholic 50 2.92 103.7


The takeaways are:
These are dividend aristocrats with over 150 years of dividends
There is a value premium (as defined by the Graham number) which says that the stocks are anywhere from 60% to 100% over the Graham standard of fair market value
Even with these aristocrats, three equities is too few for a complete portfolio but it might be the core of a larger portfolio. The companies are diversified and is worthy on being measured against our benchmark ETF portfolio.

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From 03/17/2005 to 03/27/2024, the worst annualized return of 3-year rolling returns is -5.27%.

From 03/17/2005 to 03/27/2024, the worst annualized return of 5-year rolling returns is -1.07%.

From 03/17/2005 to 03/27/2024, the worst annualized return of 10-year rolling returns is 5.41%.

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