Investors have long looked to companies in the Dow Jones Industrial Average
Show me the money
The one number that makes my case is 27%. It's the 10-year annual average growth rate for McDonald's
And better yet, the company shows no signs of letting up. It recently reported strong earnings, growing profits by 11%, although the company did warn that the impact of foreign exchanges presented potential headwinds. Despite the challenging macroeconomic environment, the company still managed to increase its revenue, traffic, and market share. Talk about impressive.
The king and his court
That's not to say that other Dow components don't deserve their moment in the spotlight as well. Three other Dow companies managed to raise their payouts at an average annual clip above 20% over the past decade: semiconductor stalwart Intel
Foolish bottom line
Investors looking to add some much-needed income to their portfolios would do well to look past a stock's yield alone. Although current yield certainly matters, companies that can consistently growth their payouts over time also represent a powerful driver of long-term returns.
Dow components do offer a lot to love, but they aren't the only show in town. In that spirit, the Fool has compiled a report called "Secure Your Retirement With 11 Rock-Solid Dividends." Better yet, we made it free for our readers, so access your free copy today.
Andrew Tonner holds no financial position in any of the companies mentioned in this article. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of McDonald's, Home Depot, and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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