Investors looking to generate long-term wealth should start by looking at companies that have a long history of not just paying dividends, but of raising them. These companies have a track record of generating shareholder value over the long-term and of rewarding long-term shareholders by giving them a raise every year.
But just because these companies have rewarded shareholders through continued dividend increases doesn’t mean that the market likes them right now, and they may be interesting contrarian bets to make right now in a market where a lot of stocks seem to be overvalued.
With this in mind, I have selected three stocks — Coca-Cola, Johnson & Johnson, and Wal-Mart — which all have multi-decade track records of raising dividends and have been under pressure as of late. This doesn’t necessarily mean that it presents opportunities, but it is a good place to start looking.