3 Dividend Stocks to Buy in October That Have Never Cut Their Payouts
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Steady Dividend Performers Worth Considering
Three US dividend kings offer income stability but suit different risk appetites for South African investors.
In a market where global uncertainties abound, dividend reliability becomes a haven. Realty Income (O) stands out with its remarkable 675 consecutive months of payments and a 6% yield—rare these days. Its exposure to diversified sectors including gaming and industrials, plus European expansion, gives it an appealing growth angle. Coca-Cola (KO) boasts decades of dividend increases and strong recent sales, with a modest 2.5% yield but defensive consumer staples equity that has battered through inflation and pandemic pressures. Procter & Gamble (PG), another staple dividend king, combines 70 years of raises with pricing power on essential goods, offering a slightly higher 3% yield. For South African investors, the rand's current weakness against the dollar means these US payouts translate into attractive rand returns, but watch out for currency volatility that can erode gains. If the USD/ZAR moves sharply weaker, it could dilute income in local terms. These stocks suit cautious investors who want dividends on their side but don't expect high growth. this is just our opinion and not financial advice
Buy Realty Income for yield and global diversification, hold Coca-Cola for steady defensive exposure, and watch P&G for inflation resilience. Hedge some USD/ZAR risk if local costs and liabilities are rand-based.
- Realty Income (O)
- Coca-Cola (KO)
- Procter & Gamble (PG)
- USD/ZAR
- Sharp rand appreciation reducing dividend rand value
- US market volatility impacting share prices
6/10
The article recommends three dividend stocks with strong track records of never cutting payouts: Realty Income (O) with a 6% yield and 56+ years of consecutive monthly dividends, Coca-Cola (KO) with 64 years of consecutive dividend increases and recent strong market performance, and Procter & Gamble (PG) with 70 years of dividend raises and a 3% yield. These stocks are positioned as defensive investments suitable for potential market corrections.
Our take is based on reporting first published by The Motley Fool.