Notable Runners – Coty Inc (NYSE:COTY), Microsoft Corporation (NASDAQ:MSFT)
Investors looking to grow long term wealth should devote at least some of their portfolio to companies that pay dividends. But how do you choose which ones to add to your portfolio? If you are looking for dividend paying stocks, the most reliable companies to add to your portfolio are those that don’t just pay dividends, but that raise them regularly.
Public companies and their boards typically start issuing regular dividend payments to common shareholders once their companies have reached a significant size and level of stability. Often, young, fast-growing companies prefer not to pay dividends, opting instead to re-invest their retained earnings into their business operations, compounding their growth and thus the book value of their shares over time. However, once a company does decide to start paying a specified amount of money to shareholders in the form of regular cash dividends, its stock usually trades with a little less price volatility in the market.
These companies have long track records of creating long-term value for shareholders.
Coty Inc (NYSE:COTY) traded 22,473,039 shares on last trading session with closing price of $19.95.
COTY was trading -32.89% below its 52-week high and 17.70% above its 52-week low. Its last 5-Year EPS growth stands at 9.10%; with earnings growth of -75.20% yoy. The stock stands 9.18% above the average-price of 50 days and 10.99% compared with the SMA 20.
The stock has a 1-year performance down -24.23% and a positive weekly performance at 10.16%. Moreover, the stock is up 15.92% in one month through last close, to $19.95, showing a 0.22% return during the past three months. The company is set at a mean analysts’ recommendation of 2.60.
COTY has been paying dividends since 2013 and has raised their dividend for 2 consecutive years. It has a dividend yield of 2.80% and a 5 year dividend growth rate of 0.00%. Their payout ratio is 119.00%.
Microsoft Corporation (NASDAQ:MSFT) shares moved to $69.31 after opening the day at $68.99, on Wednesday. The stock floated in a price range of $68.92 to $69.56, with market capitalization of $535.89B. The stock exchanged hands with 17,910,596 shares lower as compared to its average daily volume of 21.49M shares. If we take a look on its volatility, 0.83 percent was seen in a week and for the month it was 1.06 percent.
The company’s net profit margin stands at 20.40% whereas its return on equity (ROE) is 25.40%. It has 7.72B of outstanding shares and its shares float measured at 7.54B. The average analysts gave this company a mean recommendation of 2.00.
MSFT first paid dividend in 2003 and has increased their dividend for 11 straight years. They have a dividend yield of 2.30% and a 5 year dividend growth rate of 15.85%.