For some investors, investing in socially responsible companies is very important. While some “sin” stocks, like tobacco stocks, can offer attractive yields, there are plenty of socially responsible dividend opportunities. The list of companies that care about the greater good is definitely a lengthy one, with companies like Whole Foods Market (NYSE: WFM) and Starbucks Corporation (NYSE: SBUX) being some of the most well-known.
For investors that are unable to settle on a single (or several) socially responsible stocks, there is the iShares MSCI KLD 400 Social Index ETF (NYSE: DSI). This ETF is compiled of 400 socially responsible companies and has a dividend yield of approximately 1.5%. This ETF’s top holdings are Microsoft, Google, Procter & Gamble, Verizon, and Merck. While its dividend yield is lower than many of the dividend opportunities in the category, it can give investors great exposure to hundreds of companies.
The stocks below can be good choices for dividend investors seeking social responsible opportunities.
3M Co (NYSE: MMM) is a technology company that has a dividend yield of about 2.5%. The company has rewarded shareholders by increasing its dividend every year for nearly 60 years (since 1959).
3M runs its company with the mentality that there should not be a compromise between sustainability and quality. It aims to create its products so that all stakeholders benefit. The company also takes other values into consideration such as employee health, the environment, and education.
Deere & Company (NYSE: DE) is a farm machinery company that offers a dividend yield of approximately 2.3%. The company has been increasing its dividend every year since 2010.
Deere has shown commitment to creating environmentally friendly products and how it approaches labor and human rights. In 2016, the company was ranked among the World’s Most Ethical Companies for the tenth year in a row by the Ethisphere Institute.
Deere ranks 30 on our Top 100 Dividend Stocks list.
Microsoft ranks 73 on our Top 100 Dividend Stocks list.
Proctor & Gamble ranks 88 on our Top 100 Dividend Stocks list.
IBM ranks 16 on our Top 100 Dividend Stocks list.