This article was revised on September 29th, 2016
Dividend.com added a $60 billion company to the Best Dividend Stocks list. This company is a leader in semiconductors and interestingly started off as an oil and gas company in the 1930s. It has increased its dividend for 12 consecutive years so far and has an incredible 40,000 patents worldwide. The company generated $3.7 billion of free cash flow in 2015. Since 2004 it has reduced its share count by almost half. Furthermore, this company has had an annualized dividend growth rate of over 23% for the last five years.
In 2015, this company generated $13 billion of sales. In 2016, analysts estimate an EPS of $2.93, followed by $3.22 for 2017, pointing to 9.89% growth. With a 46.5% payout ratio, this company has ample room to keep growing its dividend.
To summarize, here are 4 reasons you should own this stock:
- 12 consecutive years of dividend increases.
- More than 40,000 patents worldwide.
- $3.7 billion of free cash flow generated in 2015.
- Reduced share count by almost half since 2004.
A Soft Removal From the Best Dividend Stocks List
We have removed a health care giant that has featured on our list since 2012. The stock has so far returned an incredible 46%, excluding dividends. Though this stock is being removed, it remains Recommended with a rating of 3.5.