General Motors Company (GE) designs, builds and sells cars, trucks and automobile parts. The technology company offers a huge dividend yield of 4.64%, which stands at the high end of the industry average and S&P 500 dividend aristocrats. The company has raised its dividend over the last 49 straight years. Recently, it increased its quarterly dividend by 5.6% to $0.38 per share. Stocks like these can be traded via most brokers.
The company’s dividends are safe amid its innovations and revenue expansion strategies. GM has recently posted record performance for the second quarter of this year. It generated record sales of $42.4 billion, representing a growth of almost 11% compared to the same period of last year. General Motors also posted record EBIT of $3.9 billion, up 37% over the second quarter of last year.
Strong retail sales in the U.S. and China and a continued focus on improving the performance of its operations worldwide were the key drivers behind record-breaking performance. General Motors is a perfect stock for retirees on the back of its potential to return significant amount to share holder through dividend and buy backs.
Tech Dividends at IBM
International Business Machines (IBM) is also a dependable player for the defensive nature of tech investors. IBM currently offers a quarterly dividend of $1.40 per share, yielding around 3.50%. The company recently raised its quarterly dividend from $1.30 a share to $1.40 a share, 21st year of consecutive dividend growth.
Despite changing business environment, strong market competition and innovative new technologies, IBM is in a sound financial position to sustain its dividend growth. The company has recently beaten both revenue and earnings estimates for the second quarter of 2016. The company’s strategy of moving its business model and revenue base towards cloud, analytic and engagement businesses is working.
In the latest quarter, its strategic imperatives revenue increased 13% to of $8.3 billion, compared to the same period of last year. IBM returned $1.3 billion in dividends and $0.8 billion through its buyback program. The company’s dividends are completely safe amid its move towards cloud and analytic businesses. Thus, IBM continues to be a dependable stock for defensive investors.