3 Perfect Income Stocks for Retirees | Personal finance
After all, auto parts are a business that can perform well when the economy suffers. When all is well, people whose cars are starting to cause them problems may be willing to trade in that vehicle for a newer, presumably more reliable model. When the economy is tough, they are more likely to keep and repair their cars. Older cars often require more repair than newer ones, and this combination of “more likely to repair” and “older vehicles” helps Genuine Parts’ business to withstand tough times.
The yield on Genuine Parts is 2.6% more modest, but that yield is still higher than what even 30-year T-Bills are currently offering investors. Also consider that continued dividend growth is possible with the Genuine Parts dividend but not with most Treasuries, and the dividend starts to look even more attractive.
Genuine Parts has a debt ratio of around 1 and its dividends are well covered by its operating cash flow. This combination, along with the fact that it has increased that payout for more than six consecutive decades, should give investors good reason to believe that it will continue to support its dividend in the future.
A digital infrastructure company at the center of our online life
Although tech companies are rarely seen as revenue games, Cisco Systems (NASDAQ: CSCO) could very well be a worthy exception. Cisco has steadily increased its dividend since its inception a decade ago, and that payout now offers shareholders a solid return of 2.8%.