The Steady Drip: Create Intergenerational Wealth With Dividend Growth Stocks (Connecting the Dots: Abbott Laboratories, Commercial Club of Chicago, FDA, CDC, S&P, McGraw Hill Financial Inc & Soros Funding, All Networking)

Create Intergenerational Wealth With Dividend Growth Stocks (Connecting the Dots: Abbott Laboratories, Commercial Club of Chicago, FDA, CDC, S&P, McGraw Hill Financial Inc & Soros Funding, All Networking)

By Bob CiuraMonday, 27 January 2025 03:05 PM EST

(Patrick T. Fallon/Getty Images)

https://www.newsmax.com/finance/bobciura/dividend-growth-stocks/2025/01/27/id/1196704/

Intergenerational wealth is created when one’s investments provide not only for themselves, but for their children, grandchildren, and beyond. Unfortunately, the skills that it takes to build and maintain a growing investment portfolio are typically not transferred with an inheritance.

The good news is that quality dividend growth stocks can generate long-term wealth that lasts through the generations. The following 3 dividend growth stocks should continue to raise their dividends for decades to come. In this way, these 3 dividend growth stocks could produce intergenerational wealth.

NextEra Energy (NEE)

NextEra Energy is an electric utility with two operating segments, Florida Power & Light (“FPL”) and NextEra Energy Resources (“NEER”). FPL is the largest U.S. electric utility by retail megawatt hour sales and customer numbers.

The rate-regulated electric utility serves about 5.9 million customer accounts in Florida. NEER is the largest generator of wind and solar energy in the world. NEE was founded in 1925. NEE generates roughly 80% of its revenues from FPL.

NextEra Energy reported its Q3 2024 financial results on 10/23/24. For the quarter, the company reported revenues of $7.6 billion (up 5.5% year over year), translating to adjusted earnings of $2.1 billion (up 11% year over year). On a per share basis, adjusted earnings climbed 10% to $1.03.

The utility added ~3 GW of new renewables and storage projects to its backlog, including ~1.4 GW of solar and ~1.4 GW of battery storage, bringing its backlog to over 24 GW.

Year to date, it generated operating revenue of $19.4 billion (down 8.8% year over year), adjusted earnings of $6.0 billion (up 11%), and adjusted earnings per share (“EPS”) of $2.90 (up 9%).

NEE has increased its dividend for 29 consecutive years.

S&P Global Inc. (SPGI)

S&P Global is a worldwide provider of financial services and business information and revenue of over $13 billion. Through its various segments, it provides credit ratings, benchmarks and indices, analytics, and other data to commodity market participants, capital markets, and automotive markets.

S&P Global has paid dividends continuously since 1937 and has increased its payout for 51 consecutive years.

S&P Global posted third quarter earnings on October 24th, 2024, and results were quite strong once again. Adjusted earnings-per-share came to $3.89, which was 25 cents ahead of estimates. Earnings were down from $4.04 in Q2, but much higher than $3.21 in the year-ago period.

Revenue soared 16% higher year-on-year to $3.58 billion, which also beat estimates by $150 million. Growth in the Ratings and Indices segment led the top line higher in Q3, although strength was broad.

S&P Global has grown consistently since the financial crisis, boosting revenue and operating margins on a regular basis, with recent results showing a continuation of this trend. We think S&P Global will see a tailwind from its buyback, as well as high-single digit revenue gains, and some measure of margin expansion to get to our target of 12% earnings-per share growth annually in the coming years.

The most important feature of S&P Global is its strong competitive position. It operates in the highly concentrated financial ratings industry where the three well-known rating agencies control over 90% of global financial debt ratings.

SPGI has increased its dividend for 51 years, making it a Dividend King.

Abbott Laboratories (ABT)

Abbott Laboratories, founded in 1888, is one of the largest medical appliances & equipment manufacturers in the world, comprised of four segments: Nutrition, Diagnostics, Established Pharmaceuticals and Medical Devices.

In the most recent quarter, the company produced $10.6 billion in sales (60.5% outside of the U.S.), which represented a 4.9% improvement compared to the third quarter of 2023 and was $90 million more than expected. Adjusted earnings-per share of $1.21 compared to $1.14 in the prior year and was $0.01 ahead of estimates.

With its strong position in growth markets such as diagnostics, where Abbott Laboratories is the market leader in point-of care diagnostics - and cardiovascular medical devices, Abbott Laboratories should be able to generate attractive long-term growth.

Abbott Laboratories’ dividend payout ratio has never been above 50% throughout the last decade. Coupled with the fact that the company’s earnings-per-share did not decline during the last financial crisis – it actually continued to grow Abbott Laboratories’ dividend looks very safe.

ABT has increased its dividend for 52 consecutive years.

Connecting the Dots:

William M. Daley was a director at Abbott Laboratories, the chief of staff for the Barack Obama administration and is a member of the Commercial Club of Chicago.

Rahm I. Emanuel was the White House chief of staff for the Barack Obama administration, is a member of the Commercial Club of Chicago and Ezekiel Emanuel’s brother.

Barack Obama was the president for the Barack Obama administration and an intern at Sidley Austin LLP.

Michelle Obama was a lawyer at Sidley Austin LLP.

Newton N. Minow is a senior counsel at Sidley Austin LLP and a member of the Commercial Club of Chicago.

R. Eden Martin is counsel at Sidley Austin LLP and the president of the Commercial Club of Chicago.
Sally Blount is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

W. James Farrell is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

Edward M. Liddy is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

William A. Osborn is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

Samuel C. Scott III is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

Glenn F. Tilton is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.

Miles D. White is a member of the Commercial Club of Chicago and the chairman & CEO for Abbott Laboratories.

Christopher B. Begley is a member of the Commercial Club of Chicago and was the SVP for Abbott Laboratories.

Jack M. Greenberg is a member of the Commercial Club of Chicago and was a director at Abbott Laboratories.

Robert L. Parkinson Jr. is a member of the Commercial Club of Chicago and was the president & COO for Abbott Laboratories.

William D. Smithburg is a member of the Commercial Club of Chicago and was a director at Abbott Laboratories.

Newton N. Minow is a member of the Commercial Club of Chicago and a senior counsel at Sidley Austin LLP.

R. Eden Martin is the president of the Commercial Club of Chicago and counsel at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP.

Michelle Obama was a lawyer at Sidley Austin LLP.

Cameron F. Kerry is a senior counsel at Sidley Austin LLP, John F. Kerry’s brother and a fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank) and the Center for American Progress.

George Soros was the chairman for the Foundation to Promote Open Society and a supporter for the Center for American Progress.

Ezekiel Emanuel is a senior fellow at the Center for American Progress, Rahm I. Emanuel’s brother, a founding chair of the Department of Bioethics for the National Institutes of Health (NIH) and the former Director of the Office of Management and Budget in the Barack Obama Administration.

Tom Daschle is the chairman for the Center for American Progress, a nominee for health and human services secretary for the Barack Obama administration and was a special policy adviser at Alston & Bird.

Alston & Bird was the lobby firm for Abbott Laboratories.

Thomas F. Chen was the SVP for Abbott Laboratories and is a director at Baxter International Inc.

James R. Gavin III is a director at Baxter International Inc. and was a staff associate for the National Institutes of Health (NIH).

Ezekiel Emanuel is a founding chair of the Department of Bioethics for the National Institutes of Health (NIH) and Rahm I. Emanuel’s brother.

Robert L. Parkinson Jr. is the chairman & CEO for Baxter International Inc., a member of the Commercial Club of Chicago and was the president & COO for Abbott Laboratories.

R. Eden Martin is the president of the Commercial Club of Chicago and counsel at Sidley Austin LLP.

Newton N. Minow is a member of the Commercial Club of Chicago and a senior counsel at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP.

Michelle Obama was a lawyer at Sidley Austin LLP.

Cameron F. Kerry is a senior counsel at Sidley Austin LLP, John F. Kerry’s brother and a fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Mark B. McClellan was a senior fellow at the Brookings Institution (think tank) and a commissioner for the U.S. Food and Drug Administration (FDA).

Cyrus F. Freidheim Jr. is an honorary trustee at the Brookings Institution (think tank) and a member of the Commercial Club of Chicago.
Sally Blount is a member of the Commercial Club of Chicago and a director at Abbott Laboratories.