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Coca-Cola has paid nearly $100 billion in dividends over the past 15 years.
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ExxonMobil returned $36 billion in cash to shareholders last year, the fifth-most among S&P 500 members.
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Johnson & Johnson generated $20 billion in free cash flow last year, easily covering its dividend outlay.
Some companies excel at generating cash. They operate mature businesses that produce significantly more profit than they need to support their continued expansion. That gives them lots of money to pay dividends.
Here are four top money-printing dividend stocks.
Coca-Cola (NYSE: KO) owns an iconic portfolio of soft drinks, water, teas, and other beverage brands that generate substantial cash. Last year, the company produced $10.8 billion in free cash flow, $8.5 billion of which it paid out in dividends. Over the last 15 years, it has distributed nearly $100 billion in cash dividends to shareholders.
The company's durable and growing cash flows have enabled it to steadily increase its dividend payment. Coca-Cola raised it by 5.2% earlier this year, the 63rd straight year it has increased its payout. That puts the beverage giant in the elite group of Dividend Kings, companies with at least 50 years of consecutive annual dividend increases.
The company expects to produce even more cash in the future. Its long-term target is to organically grow its revenue by 4% to 6% annually, which should drive annual growth in earnings per share in the mid to high single digits. Coca-Cola plans to convert 90% to 95% of its growing earnings into free cash flow, which should support continued dividend increases.
ExxonMobil (NYSE: XOM) runs a large-scale global energy business that consistently produces significant cash flows. Last year, Exxon generated $55 billion in cash flow from operations, marking its third-best year in a decade, even though oil and gas prices were around their historical averages.
The company produced $36.2 billion in free cash flow and returned $36 billion to shareholders via dividends ($16.7 billion) and share repurchases ($19.3 billion). Those cash returns led the oil sector and ranked as the fifth-highest among S&P 500 companies.
The oil giant expects to invest $165 billion into major growth projects and its Permian Basin development program through 2030. These high-return investments should grow its annualized cash flows by $30 billion by 2030, assuming stable oil prices.
That has it on pace to produce a huge gusher of $165 billion in cumulative surplus cash over the next five years, which should support continued payout increases. With 42 straight years of dividend growth, Exxon has reached a level that only 4% of companies in the S&P 500 have achieved.
