Rock-solid dividend stocks you can bank on.
Finding great dividend stocks is hard work. Any company can pay a dividend — but is it prudent, sustainable, based on a sound and stable long-term business, and liable to grow? And from an investor’s perspective, is it meaningful? These are the questions that matter to long-term income investors. One shortcut to finding great dividend stocks is to look at so-called “dividend aristocrats,” companies in the Standard & Poor’s 500 index that have been increasing dividend payments annually for at least 25 years. There are only about 50 such companies in the world: Here are the 52 highest-yielding dividend aristocrats, from lowest to highest.
3M (MMM)
Founded in 1902 in St. Paul, Minnesota, 3M has a long and storied history of innovation, diversification and success. Today, the company makes such a variety of different industrial and consumer products, you’d be shocked to hear one company could do so many things. The inventor of the Post-It note also makes all kinds of tape, original equipment manufacturer (OEM) parts like powertrains and chassis materials, and a laundry list of other products for almost any end market you can think of. Famously, 30 percent of division revenue must come from products introduced in the last four years, keeping innovation incentivized.
Sector: Consumer industrials
Consecutive annual dividend increases: 59
Dividend yield: 2.6 percent
Abbott Laboratories (ABT)
Abbott has long been a standout player in the health care sector, both in terms of its offerings and in terms of its good treatment of investors. Today, ABT is well-diversified, deriving revenue from its pharmaceuticals, nutritional products, diagnostics and cardiovascular divisions. Abbott hasn’t grown to $100 billion by accident: Its products, which now include the world’s first smartphone-compatible cardiac monitor, have saved countless lives. Along with many other products, Abbott is well-known for its stents as well as the meal replacement Ensure.
Sector: Health care
Consecutive annual dividend increases: 45
Dividend yield: 1.8 percent
AbbVie (ABBV)
Growing sales by double digits annually, AbbVie is a high-growth 2012 spinoff of Abbott. Including its former parent company’s dividend payments before the spinoff, ABBV has been increasing quarterly cash payments to its grateful shareholders since 1973. Worth more than $165 billion, ABBV has a blockbuster arthritis drug Humira, which is also approved to treat many other ailments and pulled in $4.7 billion in a single quarter recently. Its Lymphoma drug Imbruvica and Hepatitis C treatment Mavyret are also growing rapidly.
Sector: Health care
Consecutive annual dividend increases: 45
Dividend yield: 3.6 percent
Aflac (AFL)
Who hasn’t heard of Aflac? The cacophonous duck has practically bullied its way into the American collective consciousness through relentless advertising and a never-ending refrain of the company’s name. AFL offers both health and life insurance — including accident, loss-of-income and hospital indemnity plans — and operates in the U.S. and Japan. AFL isn’t what you’d call a high-growth business, with revenue expected to barely grow over the next several years, but it’s steady. Also, rising rates should be good for insurers, who get to invest spare premiums.
Sector: Financial services
Consecutive annual dividend increases: 35
Dividend yield: 2.3 percent
Air Products & Chemicals (APD)
Guess what this company does? You got it! APD got straight to the point with its name, summarizing its business of selling basically any legal gas you can imagine, along with various products for those wishing to transport, store or purify gas and air. Founded in 1940, this under-the-radar dividend stock has been sticking to its niche and expanding steadily and reliably since its founding. With diversified clientele from the agriculture, oil and gas production, glass, metal production and mining industries (among others), it’s no wonder APD is a cash cow and a dividend aristocrat.
Sector: Basic materials
Consecutive annual dividend increases: 35
Dividend yield: 2.6 percent
A.O. Smith Corp. (AOS)
Do you like running water in your house? You probably like the luxury of hot water even better. A.O. Smith meets this demand by making hot water heaters on a massive scale. It turns out people all over the world — AOS operates in the U.S., China, India, Mexico, the U.K., the Netherlands and Turkey — have an appreciation for it. Residential water heaters can cost anywhere from $400 to $3,000 and up, and they don’t last forever, so there’s steady demand. AOS also makes commercial water heaters and boilers, which cost even more and have a wider range of uses.
Sector: Industrials
Consecutive annual dividend increases: 25
Dividend yield: 1.1 percent
Archer-Daniels Midland (ADM)
Founded in 1898, Archer-Daniels Midland is one of the biggest players in agriculture today. Doing the behind-the-scenes work that helps feed the masses, ADM makes animal nutrition products, oilseeds and cash crops like corn, wheat, rice and barley. Aside from farming the biggest crops, the company also does the processing work that turns these raw foods into some of the most common ingredients that you see in almost every product you buy — think high fructose corn syrup, glucose, dextrose and amino acids. ADM is a prototypical defensive dividend stock; as long as people keep eating, ADM will make money.
Sector: Consumer defensive
Consecutive annual dividend increases: 42
Dividend yield: 3 percent
AT&T (T)
The king of the dividend aristocrats, in terms of dividend yield, is the telecom AT&T, paying upwards of 6 percent annually. An already entrenched player in an oligopolistic market, the rise of smartphones has given the major networks even more staying power. Many investors buy AT&T stock with the mindset of a bondholder: Give me a juicy quarterly income check and I’ll be happy! Even though rising rates will convince some shareholders to sell and go into fixed income, with the 10-year yield only about 3 percent, AT&T’s payout still dwarfs Treasury bonds.
Sector: Communication services
Consecutive annual dividend increases: 33
Dividend yield: 6.2 percent
Automatic Data Processing (ADP)
Who would’ve thought it possible to build a business valued at more than $50 billion around human resources? In a way, that’s precisely what ADP has done; ADP is one of the go-to providers for mid- to large-size companies that want to streamline HR. Its cloud-based software solutions run the gamut from payroll to compliance, benefits and other HR-related services. It also helps companies find talent quickly through its outsourcing division and, importantly, earns interest on the funds it holds for clients. This “float” is then invested in low-risk debt instruments.
Sector: Technology
Consecutive annual dividend increases: 43
Dividend yield: 2.2 percent
Becton, Dickinson and Co. (BDX)
For a nearly $60 billion company, Becton, Dickinson flies under the radar. The company, which was founded in 1897, makes medical supplies and diagnostic equipment. It would require a novella to detail everything BDX produces, but it runs the gamut from syringes and antiseptic products to testing systems for women’s health and kits for cellular analysis. This is a great industry to be a dominant player in, especially as baby boomers age and health care demand surges. The best dividend stocks tend to be proven players, and BDX definitely checks that box.
Sector: Health care
Consecutive annual dividend increases: 46
Dividend yield: 1.3 percent
Brown-Forman Corp. (BF.B)
Who would have guessed that people like to get drunk? Brown-Forman Corp. seems to have been privy to that information since 1870, when it was founded. While its most notable and storied brands are Jack Daniel’s and Gentleman Jack, it doesn’t limit its market to whiskey but also produces champagne, vodka, tequila, brandy and other spirits under a variety of different brands. While scaling production of aged whiskey might not be too scalable as a business, it’s certainly durable over time — granted America learned from that whole Prohibition debacle.
Sector: Consumer defensive
Consecutive annual dividend increases: 33
Dividend yield: 1.1 percent
Chevron Corp. (CVX)
A giant of the oil and gas space, Chevron does it all — which is precisely why it’s been able to weather a severe multi-year commodities bear market, increasing its dividend the whole time while remaining profitable. Shareholders like a dividend aristocrat of Chevron’s size (about $250 billion) for exactly that reason: It can survive anything. Its diversified operations also don’t hurt. CVX does oil and gas exploring, drilling and production, transportation, refining, marketing and distribution. That vertical integration and scale means more safety for shareholders.
Sector: Energy
Consecutive annual dividend increases: 32
Dividend yield: 3.4 percent
Cincinnati Financial Corp. (CINF)
This $12 billion property and casualty insurance company has been prioritizing dividend growth since Jack Kennedy was in the White House. Sure it’s one of the smaller dividend aristocrats you’ll come across — all things being equal, a larger-sized company is a safer investment — but it’s a conservatively run business with a long track record of moderate but reliable single-digit revenue growth. While most of CINF’s revenue comes from premiums, it also earns meaningful investment income; rising interest rates will boost the rake in its fixed-income business and help finance the steady dividend.
Sector: Financial services
Consecutive annual dividend increases: 57
Dividend yield: 3 percent
Cintas Corp. (CTAS)
Arguably one of the most mundane businesses among the dividend aristocrats, Cintas makes its living by making clothes for people making livings. It’s a corporate uniform company. Yawn yourself to sleep on this company at your own risk, however; shares have catapulted from about $24 in 2010 to more than $180 just eight years later. The Cincinnati-based company also makes restroom cleaning supplies, rents and services uniforms, and fire-retardant clothing and products. Maybe CTAS has competitors ignoring it too, because 35 years of dividend growth doesn’t lie.
Sector: Industrials
Consecutive annual dividend increases: 35
Dividend yield: 0.9 percent
The Clorox Co. (CLX)
Clorox has followed the tried-and-true formula of building and accumulating a diversified group of consumer brands. Millions of American households keep at least one Clorox product stocked at any time, irrespective of the economy. Doing laundry, keeping your house in a livable condition, drinking clean water — these are timeless human activities. CLX addresses them, though, through its namesake Clorox brand, as well as other brands like Pine-Sol, Formula 409, Brita, Hidden Valley, Pinesol, Glad and Kingsford. In other words, you can take Clorox and its 3.2 percent dividend to the bank.
Sector: Consumer defensive
Consecutive annual dividend increases: 40
Dividend yield: 3.2 percent
The Coca-Cola Co. (KO)
There seems to be a trend here. The world’s most valuable brands are curiously over-represented among stocks that have raised dividends for at least 25 straight years. There’s a reason for that. Consumers buy, year after year, branded products that they know and trust — and Coca-Cola’s been building its brand since 1886. This Dow 30 blue-chip stock has an impressive array of beverage brands besides the one with its namesake, including Sprite, Fanta, Dasani and Minute Maid, but its heavy concentration in the soda category, which is in secular decline, threatens to keep depleting KO sales.
Sector: Consumer defensive
Consecutive annual dividend increases: 55
Dividend yield: 3.7 percent
Colgate-Palmolive Co. (CL)
This New York-based consumer goods company is easily the oldest of the dividend aristocrats, founded just 30 years after the birth of America, in 1806. This says something interesting about Colgate. Dividend aristocrats, by definition, are elite cash-generating companies that also manage to weather multiple economic downturns — expanding their business and increasing dividend payments all the while. CL’s 200-year record proves something else: There is something fundamentally safe and reliable about what it does. Colgate’s portfolio of brand-name oral, personal and home care products (think laundry, soap, laundry detergent) are necessities in any economy. That’s its secret.
Sector: Consumer defensive
Consecutive annual dividend increases: 54
Dividend yield: 2.7 percent
Consolidated Edison (ED)
This utility, founded in 1884, serves about 3.4 million customers in New York City and the surrounding area. Consolidated Edison sells electricity and gas to residential, commercial, industrial and government clients. The utilities industry is one of the most ideal types of dividend-paying stocks for long-term investors to buy, simply because utilities like ED are literally granted monopolies by the government. It’s tough to see ED ever going under, and although margins will never be insane, steady government-guaranteed profitability is hard to come by.
Sector: Utilities
Consecutive annual dividend increases: 43
Dividend yield: 3.7 percent
Dover Corp. (DOV)
Why is it that sleepy industrials like DOV tend to both churn out cash and get no respect from investors? Dover is the Rodney Dangerfield of dividend stocks. Trading at just 15 times earnings, this overlooked steady Eddie makes and services equipment for the consumer goods, printing and industrial end markets, among others. You’ve probably unwittingly used a Dover-made product while fueling up your car; Dover also makes products that safely handle gases and fluids. Another one of its business segments supplies commercial refrigeration and food equipment — necessary products that are invisible to most everyday consumers.
Sector: Industrials
Consecutive annual dividend increases: 62
Dividend yield: 2.4 percent
Ecolab (ECL)
“We do hygiene stuff,” isn’t the catchiest slogan (or catchy at all), but it pretty well sums up what Ecolab is all about. It processes, sanitizes and treats water for all sorts of industrial customers that use water in their daily operations, from commercial laundry companies to oil drillers to food and beverage processors. ECL is the company that cares about keeping fast food places as clean as possible; Ecolab sells the supplies, after all. If you’re not already feeling grateful Ecolab exists, it also provides pest elimination services for restaurants, food processing centers and hotels.
Sector: Basic materials
Consecutive annual dividend increases: 32
Dividend yield: 1.1 percent
Emerson Electric Co. (EMR)
An industrial quietly and reliably humming year after year, printing out greenbacks for investors, is Emerson Electric, which not only boasts a nearly 3 percent dividend but has boosted its payout for a remarkable 61 years in a row. It makes valves, measurement and analytical instruments, process and control systems and the like that are used in industries ranging from oil and gas to power generation. EMR also makes air conditioners, thermostats and water heaters for commercial and residential customers.
Sector: Industrials
Consecutive annual dividend increases: 61
Dividend yield: 2.7 percent
Exxon Mobil Corp. (XOM)
Exxon is one of the 10 most valuable companies in the world and, like its rival Chevron, is a major integrated oil and gas giant engaged in upstream, midstream and downstream operations. The global energy conglomerate has proved reserves of 21.2 billion oil-equivalent barrels, giving a floor to the company’s value, which is currently about $350 billion. The somewhat surprising bounce-back of oil prices in 2017 and 2018 benefited Exxon handsomely, reversing a streak of falling revenue. Sure, XOM is somewhat subject to the whims of energy markets, but a 4 percent dividend is tough to find.
Sector: Energy
Consecutive annual dividend increases: 35
Dividend yield: 4 percent
Federal Realty Investment Trust (FRT)
If you’re buying into FRT, you’re buying into the cash flow associated with being a landlord. Unlike most other dividend aristocrats, FRT is a real estate investment trust, which quite literally requires it to pay out 90 percent of its income in dividends. By adopting this structure, the REIT is no longer required to pay corporate taxes. FRT’s portfolio consists of high-quality retail locations in dense, high-rent urban markets. Management has also been careful to diversify, and no category currently accounts for more than 9 percent of its portfolio.
Sector: Real estate
Consecutive annual dividend increases: 50
Dividend yield: 3.4 percent
Franklin Resources (BEN)
One of the leading investment managers around, Franklin Resources is a strangely named company that mostly does business under the Franklin Templeton Investments name. Its long operating history, global presence, and the mug of Benjamin Franklin in the company’s logo are all assets that speak to its blue-chip image. With more than $730 billion in assets under management, the vast majority of BEN’s revenue comes from investment management fees. After the 2017 tax cut bill passed, Franklin Resources issued a special dividend of $3 per share, and approved an additional 80 million share buyback plan.
Sector: Financial services
Consecutive annual dividend increases: 36
Dividend yield: 2.7 percent
General Dynamics Corp. (GD)
General Dynamics is a great example of a business that is practically built from the ground up to be around for the long term — something income investors are keenly interested in when they look to the equities market. A defense and aerospace contractor, this company primarily relies on long-term contracts with the government, aerospace and other military-industrial participants. GD products include nuclear submarines, combat vehicles, weapons systems and Gulfstream jets.
Sector: Industrials
Consecutive annual dividend increases: 27
Dividend yield: 1.8 percent
Genuine Parts Co. (GPC)
The Atlanta-based Genuine Parts Co. makes and distributes replacement auto parts as well as industrial parts like bearings, hoses and hydraulic components. It has an international presence and also operates under the Napa Auto Parts brand, with more than 1,100 retail stores. At a $13 billion valuation, GPC is somehow worth less than its sales, which clocked in at more than $16 billion in the last year.
Sector: Consumer cyclical
Consecutive annual dividend increases: 61
Dividend yield: 3.1 percent
Hormel Foods Corp. (HRL)
This $20 billion company makes a wide variety of foods — largely meat-based — that you can likely find at your local grocery store, if not your own refrigerator. Famously, it’s the company behind Spam but also makes refrigerated and frozen meats like chicken nuggets, bacon, turkey and various other carnivorous mainstays. Founded in 1891, Hormel has an international reach and also manufactures Skippy peanut butter and other complementary non-meat products like tortillas. Even when times are hard, people have to eat — and hunger is Hormel’s “bread and butter.” Income investors should appreciate its stable business and sustainable, enduring dividend.
Sector: Consumer defensive
Consecutive annual dividend increases: 51
Dividend yield: 2.1 percent
Illinois Tool Works (ITW)
This $50 billion manufacturer is the archetypal diversified industrial company, producing all sorts of gadgets, gizmos, parts, polymers and products for a variety of end users. Its largest operation is the OEM automotive division, but its fingerprints are all over the economy; from food equipment to construction products, Illinois Tool Works practically does it all. ITW may not be the sexiest stock in the book, but with a presence in 56 countries, employing 50,000 people worldwide and roots going back to 1912, it’s proven itself a reliable cash cow, churning out regular dividends for shareholders.
Sector: Industrials
Consecutive annual dividend increases: 54
Dividend yield: 2.1 percent
Johnson and Johnson (JNJ)
There aren’t many no-brainers on Wall Street, but Johnson & Johnson is about as close as it comes. This New Jersey conglomerate was founded in 1885 and today is an absolute corporate behemoth, with operations in the pharmaceutical, consumer goods and medical devices segments. Its portfolio of consumer brands is mind-boggling and includes Listerine, Aveeno, Neutrogena, Tylenol, Sudafed, Benadryl, Zyrtec and, of course, Band-Aid. The real growth (and margins) are in pharmaceuticals, where JNJ just bought European giant Actelion for $30 billion. This Dow 30 company is both a juicy dividend stock and a stable powerhouse.
Sector: Health care
Consecutive annual dividend increases: 55
Dividend yield: 2.7 percent
Kimberly-Clark Corp. (KMB)
If you owned shares of a business that reached nearly a quarter of the world’s population every day, you might expect it to return some of its spoils to you directly. That’s exactly what consumer goods giant Kimberly-Clark has been doing for decades, growing its dividend for 45 years. Some of KMB’s brands include Depend, Huggies, Kleenex, Cottonelle, Scott and Kotex. The Dallas-based company has been going strong since 1872.
Sector: Consumer defensive
Consecutive annual dividend increases: 45
Dividend yield: 3.8 percent
Leggett & Platt (LEG)
Functioning at times more like an industrial than a consumer goods company, Leggett & Platt is another one of America’s best dividend stocks — not just as seen by its almost half-century of growing dividend payments but by its existential duration. Founded in 1883, LEG makes bedding products for consumers, home and office furniture, steel wire products, seating support for the auto industry, and OEM parts for the aerospace industry. LEG is focused on growing revenue between 6 percent and 9 percent annually, in perpetuity.
Sector: Consumer cyclical
Consecutive annual dividend increases: 46
Dividend yield: 3.5 percent
Lowe’s Companies (LOW)
Lowe’s is one of the two major home improvement retailers in the U.S. and has been steadily growing for decades. It’s become a go-to supplier for contractors, plumbers, carpenters and do-it-yourselfers, hawking lumber, drywall, paint, tools, gardening supplies and plants, and many other items. It’s true that LOW tends to be a cyclical stock — doing particularly well in upswings and suffering in downturns as the housing market and spending on remodeling wax and wane — but Lowe’s existence should never be threatened.
Sector: Consumer cyclical
Consecutive annual dividend increases: 55
Dividend yield: 1.9 percent
Procter & Gamble Co. (PG)
A storied member of the Dow Jones industrial average, Procter & Gamble has been a blue-chip stock practically since time immemorial. Founded in 1837, P&G has diligently built a diversified, high-quality stable of well-known consumer brands, as well as relationships with retailers and distributors, that when combined are almost impossible to compete with. Strong brands can instantly earn shelf space — and command price premiums to less-trusted generic competitors. Procter & Gamble’s brand portfolio is jaw-dropping and includes Bounty, Charmin, Crest, Downy, Febreze, Gillette, Olay, Old Spice, Oral-B, Pampers, Swiffer, Tampax and Tide.
Sector: Consumer defensive
Consecutive annual dividend increases: 61
Dividend yield: 3.9 percent
PepsiCo (PEP)
This $140 billion beverage and snacks giant clearly has one of the more enviable brands in the world, with millions of loyal consumers and a sustainable business that’s been going strong since 1898. It’s easy to see how it could go for another 100 years, and that’s what long-term investors want to see in blue-chip dividend stocks. PepsiCo is also far more diversified than its rival Coca-Cola (KO), namely because of its thriving snacks business, with brands like Lay’s, Fritos, Doritos, Cheetos, Tostitos, Ruffles and more.
Sector: Consumer defensive
Consecutive annual dividend increases: 45
Dividend yield: 3.3 percent
McCormick & Co. (MKC)
McCormick is all about its spices. You probably are, too. Aside from its own brand, it also owns brands like Frank’s Red Hot, Old Bay, and French’s. Born in Baltimore in 1889, McCormick today has tentacles in China, the Middle East, Europe and Africa. By acquiring RB Foods and Giotti in recent years, it has realized new synergies and expanded margins. In addition to its consumer business, McCormick also has an industrial segment, selling to commercial food suppliers. Resistant to downturns, conservative investors will find MKC a delicious potential addition to their portfolio.
Sector: Consumer defensive
Consecutive annual dividend increases: 31
Dividend yield: 2 percent
McDonald’s Corp. (MCD)
Is it any wonder that the company behind the Quarter Pounder and McFlurry can whip up cash just as efficiently as it churns out cheeseburgers? Those famous golden arches constitute one of the most powerful brands on the planet, but it wasn’t until recently that MCD shareholders were really getting the most out of McDonald’s unmatched scale and image. CEO Steve Easterbrook, who took the reins in 2015, has led a remarkable turnaround, focusing on all-day breakfast, menu simplification, mobile ordering and, now, delivery. Shares gained 50 percent in the following three years.
Sector: Consumer cyclical
Consecutive annual dividend increases: 41
Dividend yield: 2.5 percent
Medtronic (MDT)
This $110 billion company is one of the biggest players in medical technology, supplying advanced equipment, products and services to hospitals, nursing homes and other stakeholders in the health care community. Somewhat like Abbott, another of the elite dividend stocks on this list, MDT is quite well-diversified. Its largest segment is the cardiac and vascular group, followed by its minimally invasive therapies group, restorative therapies group and diabetes division. As with Abbott, Medtronic’s innovation has saved countless lives. Some examples of its products include heart valves, drug infusion systems for chronic pain and bone grafting technology.
Sector: Health care
Consecutive annual dividend increases: 40
Dividend yield: 2.1 percent
Nucor Corp. (NUE)
This Charlotte, North Carolina-based steel manufacturer isn’t as storied as some of the other dividend aristocrats on this list, but it’s no baby either, having been started nearly 80 years ago in 1940. As the largest U.S. steel producer, NUE stands to benefit from the Trump administration’s “America First” policies, especially the steel and aluminum tariffs announced in March that are designed to level the playing field and handicap Nucor’s foreign competitors. The other good news is that NUE pays out less than 40 percent of its earnings as a dividend, leaving substantial room for future dividend growth.
Sector: Basic materials
Consecutive annual dividend increases: 44
Dividend yield: 2.4 percent
Pentair (PNR)
It might not seem like Pentair’s 1.6 percent yield is much to write home about, but the company recently showed its devout attention to shareholder interests by spinning off its electrical business, nVent Electric (NVT), and giving investors one share of NVT for every share of PNR they owned. Spinoffs often unlock value for shareholders as the separately managed companies can concentrate more on their area of expertise. Pentair itself can now focus on what it does best: water treatment.
Sector: Industrials
Consecutive annual dividend increases: 41
Dividend yield: 1.6 percent
Praxair (PX)
This 111-year-old Danbury, Connecticut-based company has made its bones in a unique industry — gases. Incidentally, this obscure corner of the markets has produced not one but two dividend aristocrats, the second of which is mentioned later on this list. German rival Linde has agreed to merge with Praxair, but the companies will need to sell off parts of their business to gain antitrust approval. In the meantime, analysts expect more than $12 billion of sales this year to end users in industries across the board, from health care to water treatment.
Sector: Basic materials
Consecutive annual dividend increases: 25
Dividend yield: 2.1 percent
PPG Industries (PPG)
There’s a reason PPG Industries has weathered every recession since its inception in 1883 and managed to raise its dividend for nearly a half-century: Paint and coatings are eternally in demand. It’s in this humble niche that PPG carved out a place for itself, and today the company sells its chemicals and sealants to large customers in all parts of the economy, but most notably the automotive, aerospace and manufacturing industries. Its sales approach $15 billion annually.
Sector: Basic materials
Consecutive annual dividend increases: 45
Dividend yield: 1.8 percent
Roper Technologies (ROP)
Here is the rare business that truly flirts with classification in two different sectors: technology and industrials. The company apparently thinks it’s more the former, signified by its name change in 2015 from Roper Industries to Roper Technologies. Regardless, ROP provides some vital tech-based products and services, with its largest division RF Technology & Software, whose cash cow is radio frequency identification (RFID) tech. RFID chips are subtly quite vital to modern life, as essential components of credit card readers, toll systems, security cards and the like. ROP also does medical imaging, industrial tech and energy controls.
Sector: Industrials
Consecutive annual dividend increases: 25
Dividend yield: 0.6 percent
S&P Global (SPGI)
Boy, is it nice to have a brand name like S&P. Along with Moody’s and Fitch Ratings, it’s a thriving member of the oligopoly known as the credit rating industry. It also happens to run the S&P 500 — that little thing all 52 dividend aristocrats must belong to. SPGI makes a pretty penny licensing out its financial data (or “market intelligence,” as the company calls it). The company also offers many exchange-traded funds to track its own indexes, earning handsome asset management fees. Oh, and when volatility spikes, so does revenue from its exchange-traded derivatives business.
Sector: Financial services
Consecutive annual dividend increases: 45
Dividend yield: 1 percent
The Sherwin-Williams Co. (SHW)
Do you know why you know the name of this company? Because your parents did. And your grandparents. And your great-grandparents. Sherwin-Williams has been going strong since the year after the Civil War. Now an international affair, SHW isn’t your average paint company, operating more than 4,600 of its own stores. It also makes all sorts of wood finishing and preservative products and even has an industrial-facing division that provides the goods for tasks like automotive refinishing.
Sector: Basic materials
Consecutive annual dividend increases: 39
Dividend yield: 0.9 percent
Stanley Black & Decker (SWK)
One of the classic all-American companies in the stock market, this maker of power tools and storage products has been around since before the Civil War (1843). Again, for investors seeking some peace of mind in their portfolio, SWK’s business is about as rock-solid as they come — and still growing. Powered by its own strong brand — as well as a portfolio of enviable names like DeWalt, Craftsman, and Bostitch — Stanley Black & Decker is still capable of 10 percent-plus revenue growth.
Sector: Industrials
Consecutive annual dividend increases: 50
Dividend yield: 1.8 percent
Sysco Corp. (SYY)
Sysco is the largest wholesale food company in the U.S. With a market cap upwards of $30 billion, SYY is worth more than four times its closest publicly traded direct competitor, US Foods (USFD). It’s possible you’ve avoided Sysco’s products by living under a rock and harvesting crawfish from your local stream, but it’s far more likely that SYY has supplied a restaurant, hotel, college or hospital you’ve patronized. The company’s competitive advantage is its distribution system, which traffics Sysco’s many product categories, including meat and poultry, seafood, dairy, produce and even cleaning supplies like mops and chemicals.
Sector: Consumer defensive
Consecutive annual dividend increases: 47
Dividend yield: 2.3 percent
T. Rowe Price Group (TROW)
One of the biggest names in the investment industry, T. Rowe Price offers investment management products and services for individuals, retirement plans and institutions. Another great source of income for TROW and its investors are the many mutual funds that it launches and manages. It also occasionally invests small amounts — between $3 million and $5 million — in late-stage venture capital opportunities. With more than $1 trillion in assets under management and a global presence, it’s safe to say this financial manager isn’t going anywhere any time soon.
Sector: Financial services
Consecutive annual dividend increases: 31
Dividend yield: 2.4 percent
Target Corp. (TGT)
Most average consumers are familiar with Target, the second-largest big-box retailer behind Walmart. While Wall Street often thinks of TGT as the second fiddle in a brick-and-mortar retail industry that’s already under siege by e-commerce, that view ignores the simple fact that Target is a golden goose still laying eggs. You can typically count on Target, which has 1,829 U.S. stores and 350,000 employees globally, to post sales of about $70 billion and earnings between $2.5 billion and $3.5 billion year in and year out.
Sector: Consumer defensive
Consecutive annual dividend increases: 50
Dividend yield: 3.4 percent
V.F. Corp. (VFC)
It takes something special to be a traditional player in the retail business that not only survives but thrives in the age of Amazon.com (AMZN). But that sums up V.F. Corp. pretty nicely, a company that many consumers have never heard of (but frequented nonetheless). A lifestyle apparel manufacturer founded in Greensboro, North Carolina, in 1899, VFC has a surprising potpourri of impressive and diverse name brands, including North Face, Vans, Timberland, JanSport, Eastpak, Wrangler, Lee and Dickies, to name a few. Since January 2009, VFC stock is up more than 450 percent.
Sector: Consumer cyclical
Consecutive annual dividend increases: 45
Dividend yield: 2.4 percent
Walgreens Boots Alliance (WBA)
Walgreens has been aggressively expanding in recent years. Back when WBA was founded in 1901, the competitive landscape was decentralized, with a local pharmacy on practically every other block. Today, Walgreens and CVS (CVS) basically enjoy a duopoly, and in 2015 Walgreens bought European health and beauty retailer Boots Alliance. In 2017, it acquired nearly 2,000 Rite Aid (RAD) stores and, separately, a 40 percent stake in Chinese pharmacy Sinopharm. Not only is WBA a great dividend stock, but the company’s becoming more diversified and powerful.
Sector: Consumer defensive
Consecutive annual dividend increases: 42
Dividend yield: 2.5 percent
Walmart (WMT)
Ah, Walmart. It’s tough to think of a more all-American dividend stock. And even with a rival like Amazon to compete against, there’s no need to worry about the success or durability of WMT, one of the 20 largest companies in the world and a company that boasted $500 billion in sales last year. With a renewed focus on e-commerce, Walmart is targeting 40 percent online sales growth in fiscal 2019. The purchase of India’s largest e-tailer, Flipkart, should also buoy growth.
Sector: Consumer defensive
Consecutive annual dividend increases: 43
Dividend yield: 2.5 percent
W.W. Grainger (GWW)
If something breaks down, W.W. Grainger has your back. This storied industrial supplies company sells everything from power tools, gloves and janitorial supplies to HVAC, lighting materials and paint. Plumbers, carpenters, contractors, repairmen and average consumers use W.W. Grainger’s products every day, and not just in America — this Lake Forest, Illinois-based company has gone global, selling all over Asia, Europe, Canada and Latin America. The company is known for its commitment to quality, so it’s only fitting that GWW is one of the best, most reliable dividend stocks out there.
Sector: Industrials
Consecutive annual dividend increases: 46
Dividend yield: 1.7 percent
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52 Dividend Stocks Boasting 25-Year Dividend Growth originally appeared on usnews.com
