Five Potential Stocks to Help Amass Affluence Effortlessly
Investing might seem straightforward, but it often involves more than you'd expect. For instance, navigating the stock market's unpredictable swings isn't a cakewalk. However, you can simplify things by focusing on blue-chip stocks that are consumer-facing. These companies, well-known to most, boast robust histories and reliable returns.
To find these stocks, look for consistent dividend payouts. Companies with long-term dividend histories have proven they can grow while sharing profits with shareholders.
Here are five tried-and-true examples with promising futures. They won't make you an overnight millionaire, but they're among the easiest ways to build wealth.
1. Walmart
Nearly 90% of Americans live within 10 miles of a Walmart (WMT -0.24%). The company's size and bargaining power have earned it a reputation for variety and affordable prices. Walmart, an American success story, is currently the world's largest retailer.
Despite the impact of e-commerce, Walmart has adapted quickly. Its vast supply chain and extensive network of stores have allowed it to compete online fairly well, establishing itself as the second-largest online retailer in the US.
Walmart's steady growth has led to 51 consecutive annual dividend increases. As consumer spending forms the backbone of the US economy, Walmart's growth should continue for some time.
The dividend still represents just a third of the company's estimated 2024 earnings, leaving no doubt about its ability to continue paying a growing dividend and building wealth for shareholders.
2. Coca-Cola
Simple products often survive the test of time, like Coca-Cola (KO 0.37%), the world's largest non-alcoholic beverage company, whose flagship product began its reign in the 1800s. Today, it's a global empire of soda, water, coffee, and juice brands sold in millions of stores, vending machines, and restaurants.
Coca-Cola is famous for its steadfast dividends, which have risen for 62 consecutive years. The company's dividend payout ratio remains healthy at 68% of 2024 estimates.
Population growth, price increases, and innovation contribute to Coca-Cola's ever-rising profits and dividends. This strategy has worked for decades and is unlikely to change soon. With the beverage market so fragmented, Coca-Cola can continue expanding its market share almost endlessly.
3. Lowe's
Real estate and housing form a core part of the American identity, creating a massive market for Lowe's (LOW 0.03%).
As the second-largest home improvement retailer in the US, beating out Home Depot, Lowe's caters to both professional contractors and DIY homeowners. The US housing shortage (estimated at 4.5 million homes) lends further credibility to Lowe's steady growth.
Analysts expect Lowe's to grow earnings at an average rate of 10% annually over the next three to five years, making it one of the easier wealth builders to invest in and hold.
4. McDonald's
Few brands resonate with Americans more than McDonald's (MCD 0.10%), which has expanded globally to become an industry leader in the fast-food business.
McDonald's is best known for its food, but its business model is equally impressive. McDonald's uses a franchise model to open restaurants, often owning the land and buildings, generating a steady revenue stream from rent, royalties, and franchise fees.
Profitable franchising has led to 49 years of dividend growth, bringing McDonald's to the threshold of becoming a Dividend King, like some other companies on this list.
Today, McDonald's operates over 40,000 restaurants in more than 100 countries, with plans to expand to over 50,000 locations by 2027. So, this tried-and-true recipe for growth is likely to continue delivering for investors.
5. Procter & Gamble
Household items, like toothpaste, soap, and laundry detergent, are necessities that consumers rarely question. Procter & Gamble (PG 0.34%), a conglomerate that owns dozens of well-known brands, including Tide, Old Spice, Swiffer, Crest, and others, is a testament to this.
Competing with cheaper alternatives can be tough, but Procter & Gamble has thrived on its strong brand and marketing prowess. Its stable business model and sound finances (represented by a modest 58% dividend payout ratio) have enabled the company to make 68 consecutive dividend increases, the longest streak on this list.
Procter & Gamble's growth is not rapid, but it's steady, with analysts estimating the company will increase earnings at a mid-single-digit rate. If you're looking for an easy wealth builder, Procter & Gamble is worth considering.
Given the discussion about blue-chip stocks and their dividends, here are two sentences that contain the words 'finance', 'investing', and 'money':
Investing in blue-chip stocks can be a smart financial decision as they often offer reliable returns, providing a steady income stream through consistent dividends.
As you manage your investments, it's essential to consider the long-term potential for dividend growth, as this can significantly contribute to your wealth-building strategy.
