Are you looking for some stability in this bear market? Three businesses that have not only been around for more than a century but have also been paying dividends going back to the 1800s are Eli Lilly (LLY 1.14%), ExxonMobil (XOM -3.63%), and the Toronto-Dominion Bank (TD 0.46%). These businesses have excellent financials and can be sources of recurring income for years to come.
1. Eli Lilly
Healthcare giant Eli Lilly has been paying a dividend since 1885. Closing in on the 140-year mark, it has proved to be one of the most stable dividend stocks.
And there's little reason to think that its remarkable consistency will end anytime soon. Over the past three years, the company has averaged an impressive profit margin of 22%.
LLY profit margin (quarterly) data by YCharts.
Throw in some excellent growth opportunities along with high margins, and you have a business that should continue not just paying a dividend, but also increasing it. In December 2022, the company announced a generous 15% raise to its dividend, which today yields 1.4%.
Although that's lower than the S&P 500 average of 1.7%, given the growth potential and the room for the dividend to rise -- Eli Lilly has a payout ratio of less than 60% -- this can be a solid income stock for the long haul.
2. ExxonMobil
ExxonMobil is a top oil and gas producer that has benefited from strong commodity prices over the past year. The company is coming off a record-breaking year in 2022, when its net profit was an astounding $56 billion -- more than double the $23 billion profit it posted a year earlier. But even in years that weren't strong -- such as 2020, when it incurred a net loss of $22 billion -- Exxon has continued to pay a dividend.
Its payouts have been uninterrupted going back to 1882. And not only has it been paying dividends, but it has also been increasing them for decades, with its current streak sitting at 40 years. Its quarterly payments have increased by an annualized rate of 5.9% during that stretch.
While oil prices have been falling this year, they remain higher than they have been in recent years.
WTI crude oil spot price data by YCharts.
Exxon has proved to be a resilient company, and owning the stock can be a good way to diversify your portfolio, especially if you're concerned about inflation. At 3.5%, the stock also pays a fairly high yield -- although it's not the highest one on this list. That distinction goes to the last stock listed here.
3. Toronto-Dominion Bank
Bank stocks aren't popular investments these days in light of the failure of Silicon Valley Bank. But banks are safer in Canada due to stricter regulations -- and the big chartered banks, including Toronto-Dominion, dominate the industry. With less competition, there's less need for aggressive lending practices.
Whenever a top bank stock such as TD goes on sale, it's an exciting opportunity because that means its dividend yield is well above average. At 5%, this is far higher than the yield normally available with TD. And at 44%, its payout ratio remains fairly modest.
In the trailing 12 months, the company has reported a profit of just under 15 billion Canadian dollars ($11 billion) for a profit margin of 31%. Although there could be tougher times ahead for the business if the economy struggles, it's a safe bet to recover, just as it has from previous downturns.
With a strong presence in both Canada and the U.S., TD is a top bank stock you won't want to miss out on. It's trading near its 52-week low and has been falling in recent weeks due to unrelated banking scandals. But with a robust business, this is a company that will navigate the current tumult. The sell-off in Toronto-Dominion makes for a great buying opportunity for long-term investors.
