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Dividend stocks help make this happen.

Here are three dividend stocks that occupy significant space in the foundation’s holdings.

Waste Management (WM)

It’s not the most glamorous of industries, but waste management is an essential one.

No matter what happens with the economy, municipalities have little choice but to pay companies to get rid of our mountains of garbage, even if those costs increase.

As one of the biggest players in the space, Waste Management (WM) remains in an entrenched position.

The shares have gone up 75% over the past five years. In 2022, operating revenue grew 9.9% year over year.

Currently offering a yield of 1.9%, Waste Management’s dividend has increased 20 years in a row.

The company has paid out $1.08 billion in dividends over the last year, and its roughly $2 billion in free cash flow for 2022 means investors shouldn’t have to worry about receiving their checks.

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Caterpillar (CAT)

As a company whose fortunes typically follow that of the larger economy — that’ll happen when your equipment is a fixture on building sites the world over — Caterpillar (CAT) is in an intriguing post-pandemic position.

The company’s revenues are feeling the effects of a paralyzed global supply chain, but President Joe Biden’s $1.2 trillion infrastructure bill means there could be an awful lot of building going on in the U.S. in the near future.

Read more: Even a stock market idiot can earn cash with these investing tips, so stop losing your money to inflation

Caterpillar’s mining and energy businesses also provide exposure to commodities, which tend to do well during times of high inflation.

The company’s stock has ridden higher raw material and petroleum prices to a greater than 50% increase over the past five years.

After announcing an 8% increase in June 2022, Caterpillar’s quarterly dividend is currently at $1.20 per share and offers a yield of 1.9%. The company has increased its annual dividend 28 years straight.

Walmart (WMT)

With grocery stores deemed essential businesses, Walmart (WMT) was able to keep its more than 4,700 stores in the U.S. open throughout the pandemic.

Not only has the company increased both profits and market share since COVID coughed its way across the planet, but its reputation as a low-cost haven makes Walmart many consumers’ go-to retailer when prices are rising.

Walmart has steadily increased its dividends over the past 50 years. Its annual payout is currently $2.28 per share, translating into a dividend yield of 1.7%.

Walmart currently trades at $137 per share, off its 52-week highs of $160.77 set in April 2022.

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About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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