Analyzing the appeal of Coca-cola, Johnson & Johnson and Realty Income

A further dive into dividend stocks.

Welcome to our third edition of the weekly newsletter, where we will be continuing on from our last edition - this time all about dividend stocks. As stated in our previous edition, we will be shining a spotlight on 3 prominent dividend stocks, which we personally love as a collective; Coca-Cola, Johnson & Johnson and also Realty Income. Lets get right in and discuss why these stocks are excellent choices for dividend investors.

1. Coca-Cola (NYSE: KO):

Coca-Cola is a globally recognized beverage company with a long-standing history of delivering consistent dividends to its shareholders. Here's why it stands out:

a) Dividend Growth: In regards to issuing dividends to its investors, this company has a renowned reputation for its return value. Over a time span of 50 years, Coca-Cola has continuously increased its dividends every single year, which has since sparked its addition to the esteemed group within investing which is known as a ‘Dividend King’ stock. Due to its constant growth in dividends for shareholders, this inevitably shows that this company is a financial juggernaut which is able to rationally return profits, even in the worst of crisis’.

b) Stability and Presence in the Market: As we all know, Coca-Cola is an iconic non-alcoholic beverage organisation, with lots of other smaller companies under its belt. These include Sprite, Fanta, Schweppes, Dr Pepper and many more. As a result of a widespread consumer demand for its products, this helps to provide a stable revenue stream which aids this company in remaining a persistent giant within this sector of business.

c) Global Reach: This company’s remarkable global reach comes from its institutionally known branding, causing it to be one of the most well-known brands across the world. Because of its geographic diversification, Coca-Cola has become a highly attractive choice for dividend investors who are looking for a profitable, substantial company with a resilient global relevancy.

2. Johnson & Johnson

Johnson & Johnson is an acclaimed healthcare conglomerate with a strong presence in pharmaceuticals, medical devices, and consumer health products. Here's why it merits consideration as a dividend stock:

a) Resilience in challenging times: Johnson & Johnson are a massive part of the healthcare industry which tends to exhibit some of the best resilience during economic downturns as demands for healthcare products and services will also be needed and required by the consumer base. With future developments in this sector, Johnson & Johnson is poised to be a main stay no matter what happens in the world due to the fact that it has been since 1886 when the company was founded.

b) Diversified Business Segment: Due to operating in multiple healthcare sectors offering a vast range of distinctive products, this contributes to a diversified revenue stream. With a diversified revenue stream this helps to mitigate risks associated with any single sector within the healthcare sector, and also contributes to the company’s steady and up-kept long term stability.

c) Growth and consistency of dividends: Johnson & Johnson is one of the best examples of a consistent dividend payer, with a track record of over 60 years of dividends and dividend raises to go with it. This reflects the company’s priority to not only pay dividends, but raise it consecutively each year. In addition to this, it shows that the business has an amazing ability to constantly and consistently generate cash.

3. Realty Income

Realty Income, often referred to as "The Monthly Dividend Company," is a real estate investment trust (REIT) specializing in commercial properties. Here's why it gains so much attention from dividend investors:

a) Consistent monthly dividends: As stated above, Realty offers a unique and enticing dividend payment schedule that entails paying dividends every single month. This appeals to a lot of dividend investors who are looking for an extra dependable and logical income stream or even dividend investors who are income orientated.

b) Diversified real estate portfolio: This company lays within the real estate bracket, owning and leasing an array of diverse commercial properties, including retail, industrial and office spaces. Its large varied portfolio allows Realty income to mitigate some of the associated risks relying on a single sector.

c) Long-term track record: Realty income is prominent and famous for having a long term track record consisting of over 25 years of dividend increases. Its ability to do this is a clear indication if strong finances and also the skills required to navigate a constantly changing market environment and deliver constant dividend growth. For this reason, it has become a reliable choice for dividend investors.

Final thoughts:

With all that has been illustrated within this newsletter, it is evident that we can see several reasons as to why these 3 companies are deemed extremely valuable to investors who are looking to focus on authentic dividend growth and payments throughout the year. As well as this, these companies’

offer investors the opportunity to invest in a variety of resilient market leaders, ultimately making them a noteworthy addition to portfolios which are favored by many investors.

Always remember, this is not financial advice and it is essential that you conduct your own personal research on any companies discussed within these newsletters to assess your risk tolerance and understand your overall financial goals.

In next week’s edition, we will be exploring into why it is important to stay committed to your investments even during volatile market conditions, and also why the market is dipping drastically at the moment.

Happy Investing!

The Wealth Wave Team.