The Dow Jones Industrial Average is one of the oldest and hallowed stock market indices in the world. Created in 1896, the Dow consists of 30 large-cap American companies, many of which pay dividends.
While many companies in the Dow are considered blue chips, they certainly aren’t created equal, nor are all the industrial average’s dividend stocks necessarily safe bets for dependable income. In June 2018, for example, General Electric (GE) was booted from the index after having been a member for more than a century.
GE’s share price had slumped more than 50% in the year leading up to the firm’s removal from the Dow, and management also had cut the dividend for just the second time since the Great Depression.
To help identify the best dividend growth stocks in the Dow and avoid the GEs of the world, research firm Simply Safe Dividends utilizes a Dividend Safety Score system that has caught more than 98% of dividend cuts in advance.
We’ll use that system to take a closer look at nine Dow dividend growth stocks that appear positioned to reward shareholders with safe and solid payout expansion in the years ahead.
Market value: $108.6 billion
Dividend yield: 3.0%
Consecutive years of higher dividends: 60
A member of the exclusive dividend kings list analyzed by Simply Safe Dividends, 3M (MMM, $183.76) not only boasts six centuries of dividend increases, but the industrial conglomerate also has made payouts for more than a century without interruption.
Tape, sealants, drug delivery systems, insulation and protection equipment are just some of the more than 60,000 products 3M sells in 200 countries around the world.
3M’s success, dating back to 1902, is largely attributable to management’s focus on innovation and products that play a critical role in customers’ operations.