No matter what happens after Americans vote today, long term investors should continue buy stocks with a history of increasing the amount of the dividend such as Coca-Cola (NYSE: KO), ExxonMobil (NYSE: XOM), and Wal-Mart (NYSE: WMT), among others.
The bull market has been going on for more than five years, so it is difficult to state that the current state of leadership has been bad for equities.
But it is difficult to see how changes could affect the long term performance of blue chip equities like Coca-Cola, ExxonMobil, and Wal-Mart. All are industry leaders. Each is positioned well to profit from growth around the world, especially in emerging market nations. That is why legendary investor Warren Buffett is a major shareholder of all three entities!
Coca-Cola, ExxonMobil, and Wal-Mart are also “Dividend Aristocrats.”
There are publicly traded companies that have increased the amount of the dividend annually for at least twenty five years. It is tough for income investors to go wrong with stock slike this. Raising the dividend annually is a tremendous show of strength for a company considering all that has taken place over the last quarter century: there have been wars, oil embargoes, The Great Recession, even the impeachment of a United States Presidents. Even with all of that, stocks have more than proven their value as long term investments.
There is no reason to expect that to change.
Sure, certain leadership will make conditions better for Coca-Cola, ExxonMobil, Wal-Mart, and other publicly traded companies. But blue chip firms like this that are industry leaders have proven their value to long term investors. The increasing dividend feature adds to the appeal, no matter what is the ultimate result of today’s election. No matter how Americans votes today, investors who load up on Dividend Aristocrats stocks should prove to be the winner over the long term!