The Dividend King Buy-and-Hold Strategy That Can Surge 100% in 10 Years | The Motley Fool

Dividend Kings are companies that have increased their payments for at least the last 50 consecutive years. This steady dividend growth can really add up over the long term. Several Dividend Kings have delivered a more than 100% total return over the past decade, including Coca-Cola ( KO +0.18%), Johnson & Johnson ( JNJ +0.46%), and Consolidated Edison ( ED +0.52%). A simple, lower-risk strategy of buying and holding several Dividend Kings could enable you to double your money in the next 10 years. Image source: Getty Images. Plenty of pop to grow its dividend payment Coca-Cola increased its dividend payment by 5.2% earlier this year, extending its growth streak to 63 years in a row. The global beverage giant has delivered a roughly 125% total return over the past decade (8.4% annualized). The company is in a rock-solid position to continue increasing its dividend in the future. Coca-Cola's portfolio of beloved beverage products produces durable and growing revenue and earnings. The company has grown its earnings at a 7% average rate over the past five years. Its long-term goal is to organically grow its revenue by 4% to 6% per year while delivering high-single-digit earnings-per-share growth. NYSE: KO Key Data Points The company invests heavily in product innovation, marketing, and initiatives to increase productivity to drive organic growth. Additionally, Coca-Cola has a strong balance sheet, giving it ample financial capacity to make acquisitions as compelling opportunities arise. Nearly a quarter of the company's earnings growth over the past decade has come from acquisitions. With its dividend yielding nearly 3% and its earnings on track to grow at a high-single-digit rate, Coca-Cola could easily deliver a more than 100% total return over the next 10 years. A very healthy dividend stock Johnson & Johnson hiked its dividend payment by 4.8% earlier this year. That enabled it to keep pace with Coca-Cola in extending its dividend growth streak to 63 consecutive years. The healthcare giant has delivered an impressive total return exceeding 165% over the past decade (10.3% annualized). NYSE: JNJ Key Data Points The innovative medicines and medical technology company has one of the healthiest financial profiles in the world. Johnson & Johnson has a pristine AAA bond rating , one of only two public companies with a perfect credit rating. The company also produces resilient and steadily rising earnings. Johnson & Johnson invests heavily in research and development to discover, test, and launch new therapies and medical technologies. It also leverages its strong financial profile to make acquisitions that enhance its ability to grow. The company aims to grow its sales at 5% to 7% compound annual rate through at least 2030, with improving margins supporting even faster earnings growth. Add that healthy growth rate to its 2.5% yielding dividend, and Johnson & Johnson is on the path to produce a more than 100% total return again over the next decade. Plenty of power to continue increasing the payout Consolidated Edison extended its dividend growth streak to 51 straight...

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