If you are approaching retirement or have already put the daily grind behind you, supporting your lifestyle is likely one of your top concerns. One way to do that is to generate income from your stock investments.
Ideally, you’ll want to make sure the dividends are secure. Not only are the below companies reliable payers, but they are Dividend Kings. These are members of the S&P 500 that have increased their payments for at least 50 straight years, putting both businesses in exclusive company.
Let’s take a look at each company to see why you can count on it to contribute to your retirement income.
3M
When 3M (NYSE:MMM) raised its March quarterly dividend from $1.44 to $1.47, that made it 62 straight years that the board of directors has instituted an increase. At the current share price, the dividend yield is 3.6%.
It makes a lot of well-known products, including various tapes and adhesives, transportation and electronic components sold to manufacturers, and healthcare products like medical and surgical supplies. Then, there’s its consumer business, which includes Scotch and Post-it branded goods.
Granted, these aren’t the most exciting businesses, but they generate a lot of cash flow. 3M’s operating cash flow was $5.6 billion for the first nine months of the year. After subtracting $1.1 billion for capital expenditures, there was plenty of free cash flow to pay the $2.5 billion of dividends.
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