Dividends Crush the Market
Over half of the Dow
Average’s return since
2001 is from dividends.
• The compounding
effects of dividends are
one of the best ways for
investors to beat the
• Two Dow companies
have paid a dividend for
over 100 straight years:
Procter & Gamble and
Procter & Gamble’s Dividend History
Procter & Gamble has paid a dividend every year since it was
founded in 1890.
• P&G’s dividend has increased for 58 straight years.
• The current quarterly
payout of $0.6436 per
share equates to a 3.2%
yield for investors.
• P&G’s payout ratio, or
percentage of earnings
paid in dividends, has
risen recently but is still a
The Products Behind a Power Dividend
Procter & Gamble’s main
business is selling consumer
• Products like Charmin,
Pampers, and Tide are
products that are stable
through good times and bad.
• This stable business allows
P&G consistent cash flow for
DuPont’s Sneaky Strong Dividend
DuPont has paid a dividend for 439 straight quarters (110 years).
• Current quarterly dividend of $0.45 per share leads to a 2.8% yield.
• Payout ratio has
around 60% for the
past decade (except a
short time during the
DuPont’s Dividend Growth
DuPont has grown its dividend over time, but not every single year
like P&G has done.
What Drives DuPont’s Dividend
DuPont is driven by three main businesses.
• Agriculture accounted for 43% of sales and 64% of operating
income last quarter.
• Performance Materials was 16% of sales and 13% of operating
income last quarter.
• Performance Chemicals accounted for 15% of sales and 9% of
operating income last quarter.
•DuPont plans to spin off the Performance Chemicals business
but is considering other alternatives, such as a sale.
Creating a Market Beater
When including dividends, DuPont has narrowly lagged the Dow
since the early 1970s, while P&G has crushed the market.
What It Takes to Create a Century-Long Dividend
There are three keys to long-lasting dividends.
• Stable core business (e.g., consumer staples and agriculture)
• Reliable profits
• Management focus on shareholder value and dividends
Build a rock-solid dividend
portfolio with our top picks.
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.