3 Dividend Stocks With Rock-Solid Brands

Investing in the best dividend stocks is not only about buying companies with big and growing cash flows. Investors need to understand the competitive strengths in the business producing those cash flows in order to position their portfolio in companies having enough soundness to sustain capital distributions over time.

Brand power is a crucial source of competitive strength in the consumer business, and companies such as Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), and Colgate-Palmolive (NYSE: CL) benefit from rock-solid brand power, allowing them to deliver consistently growing capital distributions for shareholders over the long term. Dividends don't only provide income for investors; a solid trajectory of dividend growth is a strong reflection about a company´s quality and fundamental strengths. Coca-Cola, Procter & Gamble, and Colgate-Palmolive rely on powerfull brands to differentiate their products from the competition, and this says a lot about these companies and their ability to consistently increase dividends over years to come.

Source: Motley Fool

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