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3 Consistent Dividend Growers to Buy for Passive Income: TSM, MO, CAH
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Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
In addition, consistent dividend hikes reflect the company’s successful nature, opting to share profits with shareholders.
For those seeking companies that have consistently boosted payouts over time, Cardinal Health (CAH - Free Report) , Taiwan Semiconductor Manufacturing (TSM - Free Report) , and Altria (MO - Free Report) fit the criteria. Let’s take a closer look at each.
Cardinal Health Posts Strong Growth
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers, and manufacturers. It recently enjoyed a strong quarter, posting 29% EPS growth on the back of 12% higher sales while also lifting its current year guidance.
The company’s sales growth has been consistent throughout its history, as seen in the chart below.
Image Source: Zacks Investment Research
Strong cash-generating abilities have given it the flexibility to continuously reward shareholders, holding a spot in the elite Dividend Aristocrats club. For a quick refresher, Dividend Aristocrats are S&P 500 companies that have upped quarterly payouts for at least 25 consecutive years.
Impressively, CAH posted record operating and free cash flow throughout its latest period. Below is a chart illustrating the company’s dividend paid on an annual basis.
Image Source: Zacks Investment Research
TSM Shares Benefit from AI Trade
Taiwan Semiconductor, a current Zacks Rank #2 (Buy), has seen its earnings outlook shift bullishly across the board following favorable quarterly results that reflect rock-solid demand. Concerning headline figures in the latest print, TSM saw 30% EPS growth on 33% higher sales, continuing its recent growth trajectory.
Image Source: Zacks Investment Research
The company has long been a favorite among income-focused investors who are also seeking chip exposure, carrying a 5.5% five-year annualized dividend growth rate. Shares have overall benefited nicely on the back of the semiconductor trade fueled by AI this year, up more than 60%.
Below is a chart illustrating the company’s dividends paid on an annual basis.
Image Source: Zacks Investment Research
Though shares have had a strong run in 2024, investors aren’t overpaying for the company’s forecasted growth, with the current 0.8X PEG ratio reflecting a considerable discount to the 1.3X five-year median and five-year highs of 3.4X.
Image Source: Zacks Investment Research
Altria Undergoes Transformation
Like CAH, Altria has long been a favorite among income-focused investors, also holding the ranks of a Dividend Aristocrat through years of consistently higher payouts. The tobacco giant has undergone significant transformation over recent years due to rising health fears, now expanding into the smokeless category.
Shares have been red-hot in 2024, gaining 37% compared to the S&P 500’s 19% gain.
Image Source: Zacks Investment Research
And for those seeking high yields, Altria shares have got that covered with a current 7.4% annual yield. The company’s six dividend hikes over the past five years have translated to a 4% five-year annualized dividend growth rate, owing to its commitment to increasingly rewarding shareholders.
The company paid dividends of $1.7 billion and $3.4 billion in the second quarter and first half of 2024, respectively.
Image Source: Zacks Investment Research
Bottom Line
Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.
And for those seeking companies with a consistent history of steady payouts, all three above – Cardinal Health (CAH - Free Report) , Taiwan Semiconductor Manufacturing (TSM - Free Report) , and Altria (MO - Free Report) – fit the criteria.
All three recently upped their quarterly payouts, continuing their shareholder-friendly nature.
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3 Consistent Dividend Growers to Buy for Passive Income: TSM, MO, CAH
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
In addition, consistent dividend hikes reflect the company’s successful nature, opting to share profits with shareholders.
For those seeking companies that have consistently boosted payouts over time, Cardinal Health (CAH - Free Report) , Taiwan Semiconductor Manufacturing (TSM - Free Report) , and Altria (MO - Free Report) fit the criteria. Let’s take a closer look at each.
Cardinal Health Posts Strong Growth
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers, and manufacturers. It recently enjoyed a strong quarter, posting 29% EPS growth on the back of 12% higher sales while also lifting its current year guidance.
The company’s sales growth has been consistent throughout its history, as seen in the chart below.
Image Source: Zacks Investment Research
Strong cash-generating abilities have given it the flexibility to continuously reward shareholders, holding a spot in the elite Dividend Aristocrats club. For a quick refresher, Dividend Aristocrats are S&P 500 companies that have upped quarterly payouts for at least 25 consecutive years.
Impressively, CAH posted record operating and free cash flow throughout its latest period. Below is a chart illustrating the company’s dividend paid on an annual basis.
Image Source: Zacks Investment Research
TSM Shares Benefit from AI Trade
Taiwan Semiconductor, a current Zacks Rank #2 (Buy), has seen its earnings outlook shift bullishly across the board following favorable quarterly results that reflect rock-solid demand. Concerning headline figures in the latest print, TSM saw 30% EPS growth on 33% higher sales, continuing its recent growth trajectory.
The company has long been a favorite among income-focused investors who are also seeking chip exposure, carrying a 5.5% five-year annualized dividend growth rate. Shares have overall benefited nicely on the back of the semiconductor trade fueled by AI this year, up more than 60%.
Below is a chart illustrating the company’s dividends paid on an annual basis.
Though shares have had a strong run in 2024, investors aren’t overpaying for the company’s forecasted growth, with the current 0.8X PEG ratio reflecting a considerable discount to the 1.3X five-year median and five-year highs of 3.4X.
Altria Undergoes Transformation
Like CAH, Altria has long been a favorite among income-focused investors, also holding the ranks of a Dividend Aristocrat through years of consistently higher payouts. The tobacco giant has undergone significant transformation over recent years due to rising health fears, now expanding into the smokeless category.
Shares have been red-hot in 2024, gaining 37% compared to the S&P 500’s 19% gain.
Image Source: Zacks Investment Research
And for those seeking high yields, Altria shares have got that covered with a current 7.4% annual yield. The company’s six dividend hikes over the past five years have translated to a 4% five-year annualized dividend growth rate, owing to its commitment to increasingly rewarding shareholders.
The company paid dividends of $1.7 billion and $3.4 billion in the second quarter and first half of 2024, respectively.
Image Source: Zacks Investment Research
Bottom Line
Everybody loves dividends, essentially investors’ form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.
And for those seeking companies with a consistent history of steady payouts, all three above – Cardinal Health (CAH - Free Report) , Taiwan Semiconductor Manufacturing (TSM - Free Report) , and Altria (MO - Free Report) – fit the criteria.
All three recently upped their quarterly payouts, continuing their shareholder-friendly nature.