2 supercharged dividend stocks to buy in a bear market | The Motley Fool

Investing in dividend-paying stocks can be a great way to boost your returns and increase the amount of cash in your portfolio in a wide variety of market environments. However, with so many choices, it can be difficult to find the right dividend-paying stocks for your portfolio that can deliver sustained income and growth.

Here’s a look at two top dividend-paying stocks with some of the most illustrious stories of paying out and growing their dividends on record.

1. Abbott Laboratories

With a company history of 130+ years, Abbott Laboratories (ABT 2.01%) is also one of the few stocks on the Dividend Kings list. The company has not only paid, but also increased its dividend every year for 50+ years.

And with a current yield of around 1.8%, its dividend is perfectly in line with that of the average stock traded on the S&P500. In the past decade alone, the company’s dividend has increased by 236% and helped the stock deliver a nearly 100% total return to investors over the same period.

The reason for Abbott’s continued growth in a wide variety of economic environments comes down to its diverse portfolio of performing products and the general non-cyclical nature of its business. From continuous glucose monitoring devices (the company just completed the US launch of its new FreeStyle Libre 3 system, featuring one of the smallest and thinnest wearable sensors on the market) to infant formula to nutritional formulas, these are the types of products that consumers need. in any macro environment.

Although Abbott’s revenue and net income declined slightly in the last quarter – mainly due to the impact of the strong US dollar – Abbott still reported net sales and profit respectively of $10.4 billion and $1.4 billion for the three-month period, while raising its EPS guidance for the full year.

Over the past decade, the company has increased its annual revenue by 126%, while its net profit has increased by approximately 20% during this period. Income investors looking for a value-oriented company that can deliver stable returns to their portfolio over the years may want to consider a second look at Abbott Labs.

2. Hormel

Hormel (HRL 0.06%) also has a dividend track record that rivals many of the better-known income stocks, and a strong track record of profitability to boot. With a 2.4% yield, Hormel beats the S&P 500 stock average. The company is also a dividend king, having just announced its 57th consecutive annual dividend increase. Over the past decade, its dividend has increased by 224%, and the stock has generated a total return of 268%.

Hormel Foods’ family of brands – which includes names like Applegate, Skippy Peanut Butter, Planters and Spam – are sold in more than 80 countries around the world. The company also controls the number one or number two market share in more than 40 categories across the diverse assortment of food products it sells.

In the company’s 2022 fiscal year, it reported net sales of $12.5 billion and net income of approximately $1 billion, increases of 9% and 10% from the fiscal 2021. It also generated operating cash flow of $1.1 billion during the fiscal year. , a 13% year-over-year increase. Over the past decade, Hormel Foods has experienced annual sales and net profit increases of 42% and 90%.

Even as investors tighten their belts for fear of an impending recession, they will continue to buy needed food staples, such as those sold by Hormel. Its leading market share across a wide range of food categories, combined with a strong track record of dividend yields and growth, creates a compelling buy proposition for this stock.