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There were almost 150 dividend cuts across the company FTSE100 over the last decade. This is not an issue that long-term investors invest in Coca-Cola HBC (LSE:CCH), BAE systemsOr Witan Alliance they had to endure.
On Coca-Cola bottling plant, shareholder payouts have been increasing year by year since 2014. BAE’s annual dividends have been growing consistently since the turn of the millennium.
However, the Alliance Witan investment fund is throwing both companies off balance. Annual dividends have increased every year for over 50 years (58 to be exact).
Dividends are never, ever guaranteed. Despite their sturdy performance, even these FTSE 100 stocks and mutual funds could disappoint passive income seekers if the economic crisis comes to delicate.
However, given the increasingly uncertain outlook, I believe each of these blue-chip dividend stocks deserves earnest consideration.
The greatest trust
Let’s start with Alliance Witan. Just like another Footsie mutual fund F&C investment fund – which has also consistently raised dividends for over half a century – the dividends are based on a broad sector and regional diversification.
In total, the trust holds interests in 223 different stocks around the world. Its holdings range widely and broadly, ranging from US tech stocks Nvidia to a French energy producer Total energies and Indian bank HDFC. It also holds a huge group of defensive stocks (19% of the total portfolio) to provide additional dividend stability.
In 2025, Alliance Witan’s dividend yield will be 2.2%, below the index average of 3.2%. However, in my opinion this is more than offset by the potential for more explosive payout growth. Over the past five years, prize money has increased by an average of 13.9%.
Please remember that 100% ownership in stocks exposes them to stock market volatility.
Defense giant
BAE Systems’ dividends have been secured over the years by the long-term stability of defense spending. Throughout history, “defending the kingdom” has been every country’s number one priority.
The FTSE 100-listed company has capitalized on this to great effect with its broad portfolio of market-leading technologies. It is Europe’s largest defense contractor, whose products and services are indispensable to major military powers including the United States and the United Kingdom.
Future revenues could be at risk if public finances in the West continue to deteriorate, putting pressure on defense budgets. However, I am confident that as the geopolitical landscape becomes increasingly hazardous, weapons spending should continue to rise to recent highs, increasing BAE’s profits and dividends.
Since 2019, annual payouts have increased by an average of 8%. In 2025, the company’s dividend rate will be 2%.
Coke bottling plant
Despite the threat of fierce competition, Coca-Cola HBC continued to grow its dividends rapidly over time. That’s a record I hope to maintain, which is why I hold the supple drinks manufacturer in my own UK share portfolio.
The Coca-Cola, LeprechaunAND Fanta Bottler operates in the highly defensive consumer staples sector. But as this petite selection of names shows, that’s not the only factor supporting steady dividend growth. A company’s brands remain popular throughout the economic cycle, allowing it to raise prices to escalate profits (and shareholder payouts) regardless of economic conditions.
The bottling plant has 750 devoted customers in Europe, Africa and Asia. This includes massive exposure to emerging and developing markets, where sturdy sales growth helps fuel the dividend fire.
Over the past five years, cash withdrawals have increased by an average of 10.7%. Coca-Cola HBC’s dividend yield for 2025 will be 3%.
