Two Century-Tested Dividend Machines

Coca-Cola and Altria are two companies that have been able to maintain their dividend payments for over six decades. Coca-Cola has a record of 64 consecutive years, while Altria has achieved this feat for 57 years. Both companies rely on efficient business models, allowing them to operate with high margins.

Coca-Cola's asset-light model allows it to focus on producing syrups and concentrates, while its bottling partners handle the production and distribution of the final products. This approach has enabled Coca-Cola to outperform competitors like PepsiCo in terms of net income. The company's dividend yield is currently at 2.3%, which is below its historical average but still above average.

Altria, on the other hand, has been able to offset declining cigarette volume with higher prices. Although smoking rates are decreasing, Altria's tobacco business continues to generate significant cash flow due to the industry's pricing power. The company's 6% dividend yield is one of the highest in the S&P 500.