I suggest you only purchase companies that have a history of consistently raising their dividends.  These companies will survive and thrive no matter what happens in the economy.

Companies that have followed a policy of consistently increasing dividends have historically outperformed the market.  And the best part–they put a growing stream of cash in your pocket.  Plus, steady dividend growth helps counter inflation which could rear its ugly head due to rampant government spending.

We are still suffering from a financial crisis and global recession… these are still risky times for investors.  One great way to ride out the turmoil is with blue-chip stocks that keep raising dividends.

Another key factor to success is investing in companies that are dominating players in their business.  If you are the key player in your sector then you can raise prices to keep up with inflation.  The market leaders can easily raise capital and survive economic downturns.  These companies are mature cash cows that funnel their excess cash to investors in the form of dividends.

Invest in the 800 pound gorilla!  The one that can crush their competitors by lowering prices if need be.  Recessions and downturns actually make them stronger, because it flushes out the weak players in their space–and they gain market share.

Here are some of my favorite blue chip stocks with steady dividend growth and income.  In addition, they are the dominate player in their industry:

Procter & Gamble Co. (PG) provides branded products of superior quality and value to improve the lives of the world’s consumers.  They run a great business and own some of the world’s best brands like Tide, Duracell, Pampers, Gillette and many more.  P&G has increased its dividend for 53 consecutive years.  I believe they will continue to deliver dependable sales and earnings growth over the next several years, benefiting from growth prospects in new markets.

Wal-Mart Stores Inc. (WMT) is the biggest retailer in North America and has set its sights on other parts of the world.  They do great during times of economic downturns because people turn to discount retailers which offer more goods for less money.  Wall-Mart has vast economies of scale and can offer consumers cheap goods while turning a tidy profit.  WMT has increased its dividend for 26 consecutive years and is well positioned to gain market share in an adverse economic environment.

Exxon Mobil Corp. (XOM) is the largest publicly traded integrated oil company on earth, serving customers in over 200 countries.  XOM is well positioned to benefit from higher crude oil prices and is one of the best managed companies in the energy sector.  XOM has increased its dividend for 26 consecutive years and has excellent earnings and dividend growth and stability.  They have $32 billion in cash sitting in the bank which will allow them to gobble up competitors and gain market share.

The Coca-Cola Company (KO) is the world’s largest producer of soft drink concentrates and syrups, as well as the world’s biggest producer of juice and juice-related products.  Coke will benefit from higher retail prices as inflation kicks in.  Plus, global demand for Coke’s products has virtually unlimited potential.  Furthermore, people continue to drink Coke’s products during recessionary times like these.  They have increased their dividend for 39 consecutive years.  KO will continue to be a cash cow and pay you a hefty dividend for years to come.  Invest in and Drink Coke…

Please keep in mind that the current rally could run out of steam and we could experience a major market pullback in the near term.  Therefore, you may not want to take a full position in these stocks right now.  Take a position over time by buying in small lots.  Or, wait for a market pullback to get a better entry price.  These are some of the highest quality stocks around, but they are not immune to a market selloff.

If you’re looking for more high quality income producing stocks I suggest you subscribe to my colleague Andrew Gordon’s Income letter.  He has an excellent portfolio of income producing stocks and the newsletter is only $99 per year.  Get more information on Andrew’s Income newsletter here.

Source: Buy Quality!