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3 super safe dividend stocks that have been making recurring payments for over 130 years

A company’s track record of paying dividends is a good indication of how versatile and adaptable the company is in dealing with changing economic conditions. That doesn’t mean the dividend will always be safe and the payouts will always continue, but it is an important factor that dividend investors often consider when choosing income stocks. Three stocks that have paid dividends since the 19th century are Eli Lilly (NYSE: LLY), Coca-Cola (NYSE: KO)And Toronto Dominion Bank (NYSE:TD). Here’s how far back their performance goes and why these are still great dividend stocks to own today.

1. Eli Lilly: 1885

Eli Lilly has been paying investors a dividend since 1885. Over the years, the company has evolved, acquiring companies, bringing new drugs to market and remaining a reliable dividend investment. Today, the stock may not seem like much of an income investment; it yields only 0.7%, well below S&P500 average 1.4%.

But in reality, this was an exceptional dividend stock. The company has doubled its dividend payments over the past five years. While the yield seems low, that’s only because the stock has been so hot lately. In three years, Eli Lilly shares have risen more than 300%. Without the rapidly rising stock price, Eli Lilly’s dividend yield would be much higher than it is today.

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The company’s growth prospects look great. Eli Lilly has some promising assets in its portfolio in Zepbound and Mounjaro, with the former being a top weight loss drug and the latter approved for diabetes. Together, these drugs could generate more than $50 billion in annual revenue for Eli Lilly. With strong financials and great growth ahead, the drugmaker is not only a good dividend stock, but also a phenomenal option for growth investors.

2. Coca Cola: 1893

Soft drink giant Coca-Cola is a growth share with a top dividend. It is part of an exclusive club of Dividend Kings, which has been increasing payouts for decades. Although it has increased its dividend payments for 62 years in a row, the streak of dividends it pays dates back to 1893. Today, the stock yields a dividend of 3.1%.

Despite the continued rate hikes, Coca-Cola’s dividend is not unsustainable; profits have soared along with dividend increases. Coca-Cola’s payout ratio is around 75%, which is a sustainable rate and leaves room for even more aggressive rate hikes than the already generous 5.4% hike the company announced earlier this year.

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Coca-Cola’s business remains solid, with the company expecting organic sales growth of around 7% this year. With a versatile and seemingly unwavering business model, this is one of the best dividend stocks to buy and hold for the long term.

3. Toronto-Dominion Bank: 1857

The longest dividend streak on this list is from Toronto-Dominion Bank. If we go back to 1857, the Canadian-based bank has one of the best track records in paying dividends.

It doesn’t have a long series of dividend increases like Coca-Cola, but it does offer investors a much higher yield of 5.1%. Investors haven’t been as bullish on bank stocks amid rising interest rates, but make no mistake: TD is one of the safer options in the sector to hold in your portfolio.

Over the following twelve months, the company reported net income totaling CA$11.5 billion on revenue of CA$53.6 billion, for a solid profit margin of 21%. TD is one of Canada’s largest chartered banks, and also has a strong presence in the US. The company’s diversified businesses make it a suitable option for long-term investors, and its high-yielding shares make now an optimal time to consider TD stock.

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Should You Invest $1,000 in Eli Lilly Right Now?

Before you buy shares in Eli Lilly, consider the following:

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David Jagielski has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

3 Super Safe Dividend Stocks That Have Made Recurring Payments for Over 130 Years was originally published by The Motley Fool

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