Last Updated: January 5, 2024
The following is a list of dividend-paying stocks that consistently pay dividends to their investors. I update the dividend yields every week. I update the list annually where I add and remove dividend stocks using the following criteria:
- Company has been paying dividends for 5 years straight.
- The average dividend yield for the last 5 years is at least 6.00%.
| Stock | Dividend Payout Policy | Gross Dividend Yield (pa) | Payout Frequency |
|---|---|---|---|
| ANS | - | 8.40% | Annually |
| 50% | Annually | ||
| DMC | 25%+ | 14.23% | Annually |
| CLI | - | 6.98% | Annually |
| 60% | Quarterly | ||
| GMA7 | - | 12.36% | Annually |
| 50% | Quarterly | ||
| LTG | - | 13.10% | Quarterly |
| 50% | Semi-annually | ||
| 35% | Semi-annually | ||
| 30% | Annually | ||
| PLC | 80% | 7.39% | Annually |
| - | Annually | ||
| - | Quarterly | ||
| SCC | 20%+ | 22.40% | Annually |
| - | Quarterly | ||
| SHNG | - | 7.68% | Semi-annually |
| SPC | - | 2.50% | Semi-annually |
| TEL | 60% | 8.44% | Semi-annually |
Stocks that have been crossed out mean they failed to meet the 5-year 6.00% average dividend yield criteria. However, they remain a consistent dividend-paying stock.
A dividend policy is a commitment of a company to pay a percentage of the earnings to their shareholders as dividends. However, a company can pay dividends higher than their declared dividend payout policy depending on market condition. A company may possibly not pay any dividends at all since it is not mandated by law. Dividend cuts usually happens when the company may need the earnings to grow, manage their liabilities, or if they are not profitable.
Why go for 6.00% average dividend yield criteria?
Recently, the average inflation rate for the last 12 months is 6.00%. That means we need to find an investment class that would beat the inflation rate to maintain the value of our capital and possibly grow it.
Why not preferred shares instead?
- The best dividends are from the excess earnings of a company. This usually implies that the company is earning enough money and gives emphasis of its use for sustainability and growth then gives the excess as dividends to the investors. It has never been a good idea investing on a company that gives majority of its earnings as dividends and little to none for itself. Once it is not able to sustain itself, then the dividends are not going to be sustainable in the long run.
- Preferred shares are liabilities to a company, and they should pay their investors whether they earn or not. Even though dividends are not mandated by law, they have to pay those dividends to preferred shareholders to maintain good investor relations otherwise they won't be able to attract investors in their future endeavors. Liabilities lower down the overall financial standing of a company in which could possibly hamper down their growth and sustainability.
- Some investors prefer common dividend-paying stocks because they can accumulate shares as many as they want and hold as long as they want. Preferred shares are redeemable by the company in which investors cannot do much but are forced to sell their shares back to the company.
- Preferred shares prices are not volatile. It is nearly impossible to earn from capital appreciation. Dividend-paying stocks on the other hand not only give dividends but gives the possibility of capital appreciation as well. Common stocks are indeed riskier but among them, dividend-paying stocks are the safest because they're mostly matured and stable companies that earns enough cash to pay dividends.
- Investors trust companies who have dividend policies. This policy is most of the time honored by company to pay dividends even if not mandated by law and as long as they remain profitable. Some companies do not have a dividend policy but due to the fact that they historically pay dividends consistently is already a good indicator for them to be labelled as a dividend paying stock.
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