The 3 Best Stocks for Dividend Reinvestment Plans

Billionaire investor George Soros said it best: “Good investing is boring.”

Two great examples: dividend reinvestment plans (DRIPs)—an automatic way of building wealth that most investors ignore—and the S&P 500 Dividend Aristocrats.

Let’s take the second one first. Many of the 50 companies on the Dividend Aristocrats list peddle everyday staples like tape, telephone service and over-the counter drugs—products that are about as humdrum as you’ll find.

These are household names like Colgate-Palmolive (CL), Kimberley-Clark (KMB), and Clorox (CLX). (I’ll give you the names of my three favorite Dividend Aristocrats in a minute.)

But these companies have a big edge over the flashy wearable tech and biotech stocks investors usually go gaga for: they pay steady dividends. Not only that, they’ve all hiked their payouts for 25 straight years.



Even in the 2008 meltdown, when dividends were being slashed left and right—and many “exciting” stocks saw their share prices shredded—investors who held onto the S&P 500 Dividend Aristocrats quietly pocketed rising payouts.

Let's look closer those 3 Great Dividend Aristocrats With DRIPs:  MMM,  JNJ and HRL

Source: Forbes