2 Boring But Consistent Dividend Stocks Investors Should Consider Buying in July

When it comes to dividend stocks, I’m more interested in consistent returns than interesting companies and sporadic payouts. High yields are most often a red flag, at least for me. However, it is always worth noting that dividends are never guaranteed.

With that in mind, two consistent stocks that I think investors should take a closer look at are Bunzl (LSE: BNZL) and Howden Joinery Group (LSE: HWDN). Here’s why!

What theyre doing

Bunzl is a company with roots dating back over 100 years. Although it has evolved over the years, the company now focuses on delivering food parcels and cleaning products.

Howden is one of the UK’s largest kitchen manufacturing and joinery specialists, with a large presence across the country. It sells its products to professional customers, as well as to consumers directly via its numerous warehouses.

Bunzl’s investment case

Getting straight to the topic of yields, Bunzl currently offers a dividend yield of 2.3%. That’s a great example of a yield that doesn’t get my heart racing. However, what does excite me is the company’s track record, as it has been increasing annual dividends for dividends.

When it comes to passive income, I prefer safe, steady increases over sporadic, high-yield payouts. It’s worth noting, however, that past performance is never a guarantee of future performance.

One of Bunzl’s biggest strengths for me is its size, scale and experience. With a presence in over 30 countries and close relationships with the majority of its clients, the company has defensive capabilities, in my opinion. Indeed, the products it offers are essential. This allowed the company to generate stable profits and reward its shareholders for years.

On the downside, Bunzl’s performance has been hurt in the past, and recently as well, according to a trade report released last week, due to economic turmoil. Higher inflation and lower consumer confidence have led to lower spending on its products. This is something I would keep an eye on, as it could hurt potential returns going forward.

Howden’s investment case

The company has gradually grown to become one of the largest suppliers of its kind over the years. This has allowed it to regularly return cash to shareholders. The shares currently offer a dividend yield of 2.3%.

Like Bunzl, Howden has a good payout history in recent years. The company has increased its dividend per share over the past four years. Additionally, before the pandemic, she was on an eight-year streak.

Looking ahead, Howden has built an excellent reputation in the sector, which has helped it grow its profits. Given the current housing shortage in the UK, I believe the company is set to continue its growth, which should in theory boost profits and investor returns.

The natural risk for Howden is that it will be at the mercy of inflation linked to the vital raw materials it needs to make its products. Higher costs could lead to tighter margins and lower dividends. However, given the current housing shortage discussed, the popularity of its products and its wide presence, this is not something that worries me overly.