Passive Income Stream: 2 Stocks With Growing and Big Dividends! | news

Passive income stream for long term investors. Dividends are of elementary importance when it comes to investment because it means return on capital for the investor. These, in turn, can be used for new investments – a pyramid scheme if you use it perfectly.

If you look at stocks that have long-term growing dividends and at the same time still have a current high dividend, the two dividend champions fall Walgreen’s Boots Alliance (WKN: A12HJF) too Franklin Resources (WKN: 870315) on. They have both increased their dividends non-stop for decades. Let’s take a look at the opportunities and risks of these long-term dividend growth stocks.

Passive income stream with stocks that grow and promise big dividends

1. Walgreens Boots Alliance warehouse

The first stock that is characterized by a high dividend and a long-term dividend history is the American pharmacy chain Walgreens Boots Alliance.

In July 2022, the quarterly dividend was increased for the 47th time without interruption. That’s not all: it has been paid continuously for 89 years. A dream for long-term investors.

Olle Kamellen, my critic, because the share has given investors little joy in recent times. Over a five-year period, Walgreens Boots Alliance stock lost about half of its market value.

Weak growth, the opioid crisis in the US and high debt levels are having a negative impact. The company based in Deerfield (Illinois, USA) certainly has exciting growth prospects.

This is how the business with corona vaccinations and PCR tests grows. They are also working to expand their pharmacies to include medical practices. Equally in focus is online trade, which has been able to increase significantly in the double digits recently.

However, the biggest risk could be seen in a market entry by a major online rival such as Amazon. With an extended price/earnings ratio of 7.8 and a dividend yield of 4.9% much could already be priced in (as of 8/8/22, Reuters).

2. Franklin Resources stock: high dividend passive income stream

The American asset manager Franklin Resources is rated similarly cheap. The shares of the company based in San Mateo (California, USA) are currently available for purchase at an expected price-to-earnings ratio of 7.6 with a dividend yield of 4.2% (as of 08/08/22, Reuters).

The dividend was last increased in June 2022. There was about 4% more for investors. Since 1981, the year of the first dividend payment, the dividend has increased every year without interruption.

The current stock market environment is having a negative effect, causing declining values ​​for assets under management. Also compared to passive asset managers such as BlackRock, there are less convincing arguments for new investors.

But with nearly $1.5 trillion in assets under management, Franklin Resources has too critical an asset base to emerge as a potential winner from an industry consolidation. During the year, the share has fallen 42 per cent. Investors can still look forward to an increase of more than 50% over five years.

The article Passive Income Stream: 2 Stocks with Growing and Big Dividends! first appeared on The Motley Fool Germany.

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Frank Seehawer owns shares in Walgreens Boots Alliance. The Motley Fool does not own any of the stocks listed.

Motley Fool Germany 2022

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