Investors seeking stable income and long-term capital appreciation may consider 3M, Johnson & Johnson, and Procter & Gamble as core holdings. These companies offer consistent dividend growth and resilient business models across durable sectors.
- 3M, Johnson & Johnson, and Procter & Gamble each have 50+ years of consecutive dividend increases
- PG’s dividend has grown at a 5.6% CAGR over the past decade
- All three companies generate over $10 billion in annual free cash flow
- JNJ’s current dividend yield is 3.1%, above the S&P 500 average
- Their presence in defensive sectors enhances long-term resilience
- Strong credit ratings support sustainable dividend payouts
Three companies—3M (MMM), Johnson & Johnson (JNJ), and Procter & Gamble (PG)—stand out as potential long-term holdings for income-focused investors. Each has demonstrated a track record of increasing dividends annually, supported by strong cash flows and diversified operations. Their presence in the industrials, healthcare, and consumer staples sectors provides a defensive buffer against economic volatility. The dividend growth metrics are particularly compelling. 3M has raised its payout for 63 consecutive years, Johnson & Johnson for 59 years, and Procter & Gamble for 61 years. Over the past decade, each company has delivered a compounded annual dividend growth rate exceeding 5%, with PG’s payout increasing at a 5.6% CAGR. JNJ’s current dividend yield sits at 3.1%, MMM at 2.8%, and PG at 2.5%, all above the S&P 500 average. These firms also maintain robust balance sheets, with investment-grade credit ratings and net cash positions. 3M’s free cash flow has averaged $4.5 billion annually over the last three years, while JNJ and PG report consistent FCF above $15 billion and $13 billion, respectively. Their ability to reinvest in innovation and shareholder returns underscores sustainable payout capacity. Market impact is most pronounced in income-oriented ETFs and retirement portfolios that emphasize dividend aristocrats. Holding these stocks over the next decade could provide both income stability and modest capital appreciation, particularly in inflationary or rate-cutting environments where dividend growth becomes a key performance driver.