There is definitely a sector shift going on right now away from Consumer Staples, Utilities, and REITs into less high dividend sectors like Industrials and Technology. Big dollar fund managers are most likely cashing out their profits in these sectors and sector rotating to more growth sectors. Dividends are also becoming less "sexy" as talks of interest rate hikes are floating around the press. That's perfect for me since many of my favorite companies on my watch list are in Consumer Staples, Utilities, and REITs. REITs are still expensive so I don't have any names yet, although definitely pulling back. I have identified some names in the Staples and Utilities space below.
One of my favorites. Altria (MO) provides a very high yield and a high growth as well. It has corrected around 9% and any dip in Altria to me is a time to add. Altria yields a high 3.9% and has been consistently increasing the dividend at a 8% clip. Altria sells tobacco, an addictive product that is recession resistant and has a loyal userbase. I don't condone smoking but as an investment I recommend Altria. Altria is one of the well known dividend aristocrats with a 47 year dividend raise history (keep in mind they have spun off a lot of companies over the last several years so some may not consider Altria a dividend aristocrat).
I still remember when J M Smucker was yielding less than 2%. Now it's yielding 2.2%! It has corrected healthily by 12%. SJM sells jam and other food products. SJM has a not too shabby 19 year history of raising dividends. SJM has a higher dividend growth averaging around 9-10% y/y.
General Mills sells packaged food products such as cereal. The share price has pulled back by around 10% and now yields 2.95%, almost crossing the 3% mark again. GIS is one of my most favorite consistent food stocks due to its very stable growing earnings and dividends. General Mills and its predecessor firm have paid dividends, uninterrupted and without reduction, for 117 years... Think about that for a second, how many recessions and world wars were there in 117 years? General Mills didn't care at all. Tune out the noise. Business as usual. They sometimes go through periods of no dividend increases (fine by me), so their dividend hike history only goes back for the last 13 years.
Those are some interesting ideas that you have there. I am familiar with most of them and have even been considering some of them myself. I'm not familiar with the last one, Aqua America but I do intend to look into it some. Great article that you have put together here. Thanks for sharing.
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