Stocks With Dividends For Investment Growth And Income
The best dividend stocks are excellent alternatives for investors seeking passive income now and long-term growth in the future.
Thus, for today, I have curated a list of 20 dividend stocks paying current dividends, growing their dividends annually, and benefiting from rising stock prices. These attributes make these dividend stocks a great way to grow wealth, perfect for long-term investors.
I own all of the stocks on today’s list and have so for a long time. So, let’s go through them one by one.
20 Best Dividend Stocks From My Dividend Portfolio
Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.
1. AbbVie (ABBV)
Founded in 2013, AbbVie was formed through a spin-off of the Abbott Labs (ABT) Pharmaceutical Products Division.
Today, the company discovers and produces drugs to treat many difficult-to-cure diseases.
Better yet, AbbVie management has rapidly increased the company’s dividend per share since its founding over a decade ago.
Dividend investing tip: Check out the Financial Freedom Dividend Investing Course Simply Investing offers
2. Apple (AAPL)
Best known for the iPhone, Apple sells various technology products. The company’s offerings include devices, software, services, accessories, networking solutions, third-party digital content, and practical technology applications (apps).
Apple stock appreciation has been nothing short of phenomenal. However, the dividend yield is typically meager since dividend yield and stock price are inversely related.
However, I’m okay with the low dividend yield since Apple has provided many stock gains in my dividend growth portfolio. Plus, solid dividend growth.
Finally, I like investing in both higher and lower-yielding stocks. However, when investing in low-dividend yield stocks, I seek higher dividend growth potential.
3. Clorox (CLX)
Clorox is a leading manufacturer and marketer of consumer products. It competes in the household goods, food, and beverage categories.
Management started paying dividends in 1970. Annual dividend increases began in 1978 and have continued every year after that.
4. Coca-Cola (KO)
As most consumers like you and me know, Coca-Cola is a leading beverage company. It owns some of the world’s most well-known and influential brands. But unlike arch-rival Pepsi (PEP), Coca-Cola does not market snack food products.
Coke’s initial public offering (IPO) was on September 5, 1919. The company started paying dividends in 1920 and has paid a quarterly dividend since then.
Finally, Coca-Cola’s management has increased the dividend rate per share annually since 1963. Thus, the company is a Dividend King.
5. Home Depot (HD)
Home Depot is one of the world’s largest home improvement retailers, with over 2,300 stores across the U.S., Canada, and Mexico.
Today’s typical store averages a massive 105,000 square feet of retail space. Furthermore, the company has pushed heavily into e-commerce offerings to meet the needs of do-it-yourselfers and professional contractors.
What I like most about Home Depot’s dividend is its fast growth rate. Annual increases approaching 10% have been typical.
Dividend investing tip: Try this interactive database of dividend stocks.
6. Hormel Foods (HRL)
Hormel Foods is a Fortune 500 company that manufactures and markets high-quality food and meat products. They have more than 50 different brand-name products, many of which hold the number one or two market share positions in their respective categories.
Since becoming a public company in 1928, Hormel has paid a quarterly dividend. Furthermore, the annual dividend rate has increased since 1966, making Hormel another Dividend King.
If you haven’t figured it out, I like investing in Dividend Kings! And more of them will come as we continue through today’s list of dividend stocks.
7. International Business Machines (IBM)
IBM is a global leader in the technology sector. Management transformed legacy IBM by spinning off slow-growth IT infrastructure services, doing business as Kyndryl.
Now, IBM pursues faster-growing business areas. These areas include newer technologies like artificial intelligence, cloud computing, and blockchain, an internet-based ledger technology.
The company has paid consecutive quarterly dividends since 1916. Also, management has increased dividends annually since 1996. This accomplishment makes IBM a Dividend Aristocrat.
Patience has been vital with this stock. But now, that patience is starting to “pay dividends.”
8. Johnson & Johnson (JNJ)
JNJ is one of the world’s largest and most broadly based healthcare companies. Its primary focus is developing, marketing, and selling medical devices and pharmaceutical products.
Annual dividend increases from 1963 forward make for another elite Dividend King.
Perhaps you should add some Dividend Kings to your portfolio? I don’t know, that’s for you to decide. After all, it’s your money.
9. McDonald’s (MCD)
Next, we have the iconic hamburger chain of McDonald’s. Best known for its burgers and fries, however, did you know thousands of small to mid-sized business owners operate most of their restaurants?
These entrepreneurs are known as franchisees. Furthermore, McDonald’s makes most of its money by charging franchisees rent and royalties.
The company uses its profits partly to pay and increase dividends each year. Management has done so since declaring its first dividend in 1976.
Dividend investing tip: Many successful investors have built million-dollar dividend portfolios. To do so, they start young, live below their means, think long-term, and invest as much of their monthly savings as possible in dividend stocks.
10. McCormick & Company (MKC)
McCormick is a global leader in flavor. The company operates in two segments (Consumer and Flavor Solutions), providing spices and flavorings to retailers, manufacturers, and food service institutions worldwide.
The company is a Dividend Aristocrat, having paid dividends yearly since 1925, with annual increases beginning in 1986.
Along with Home Depot, McCormick is one of the newer additions to my dividend stock portfolio. On the other hand, I’ve owned most of these stocks for many years. Furthermore, I have held some of them for decades.
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11. Microsoft (MSFT)
Microsoft, founded in 1975, develops, licenses, and supports various software products, services, and devices. The company is best known for its iconic Windows PC operating system.
More recently, management has successfully pushed into cloud computing in a big way. Their cloud segment comprises public, private, and hybrid server products and services that power businesses. Finally, the company is on the leading edge of automated intelligence (AI) by investing in the company known as OpenAI.
In 2003, Microsoft started paying regular cash dividends to shareholders and then increased its annual dividend per share each subsequent year.
Dividend investing tip: Microsoft is an excellent example of a stock where investors can benefit from dividends and capital gains.
12. NextEra Energy (NEE)
NextEra is a significant North American electric power and energy infrastructure company operating two primary business units, Florida Power & Light (FPL) and NextEra Energy Resources (NEER).
FPL is the largest electric utility in the state of Florida, and NEER is the world’s largest renewable energy generator.
Unlike most utility companies, NEE investors benefit from rapid dividend growth. The consecutive annual dividend increases date back to 1996, making NextEra a Dividend Aristocrat.
13. Paychex (PAYX)
Paychex is a leading integrated human capital management (HCM) solution provider. Although smaller than its competitor, Automatic Data Processing (ADP), Paychex holds its own in the U.S. and targets smaller and mid-sized businesses.
Paychex began consistently paying cash dividends to shareholders in 1988. Historically, management has increased the dividend rapidly.
However, when economic conditions warrant, management will pause or slow dividend growth. Then, they will compensate for the pause with more significant dividend increases when the economy swings upward.
Are you ready to level up your dividend investing game? If yes, check out one of the best dividend investing resources here.
14. PepsiCo (PEP)
PepsiCo is one of the world’s leading beverage and snack food companies, established through the merger of Pepsi-Cola and Frito-Lay.
The company has a diverse global portfolio of brands. The brands reside in the savory snacks and beverages categories.
PepsiCo has paid consecutive quarterly cash dividends since 1965. Furthermore, since 1973, Pepsi has increased its dividend yearly, putting it among the other elite Dividend Kings.
15. Procter and Gamble (PG)
P&G is a branded consumer goods company. Popular products include Tide laundry detergent, Pampers diapers, and Bounty paper towels.
In 1891, Procter & Gamble began trading on the New York Stock Exchange (NYSE). Better yet, the company has paid annual dividends since going public, and management has increased the dividend each year since 1957.
This impressive dividend history record makes P&G, you guessed it, another Dividend King.
Dividend investing tip: Think of your dividends like a snowball rolling downhill. Consistently add fresh capital to your dividend stocks, reinvest dividends, and benefit from dividend increases. Doing so means your income will grow faster and faster as your snowball gains momentum.
16. Realty Income (O)
Realty Income is a real estate investment trust (REIT) that owns thousands of commercial properties. These properties generate rental revenue from long-term net lease agreements with tenants.
Some well-known tenants include Walgreens, 7-Eleven, Dollar General, and FedEx.
The company pays monthly dividends and has done so since 1994. Also, Realty Income is a dividend Aristocrat because of its long history of yearly dividend increases.
17. Target (TGT)
Target aims to offer its customers high-quality, on-trend household merchandise and food at discounted prices. In addition, they strive to operate clean, spacious, guest-friendly stores and easily accessible digital channels.
The company has paid investors a quarterly dividend since 1967. Furthermore, management increased the dividend rate in 1972 and has done so annually since then.
18. United Parcel Service (UPS)
UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload (LTL) freight delivery, and a premier global supply chain solutions provider. Their global delivery network, size, and efficiency create significant competitive advantages and barriers to entry.
The company has an excellent history of consecutive annual dividend increases. For example, management increased the dividend annually starting in 2010.
On the other hand, the company paused dividend growth in 2009 to navigate the depths of the Great Recession. Otherwise, its streak of annual dividend increases would be much longer.
19. Verizon (VZ)
Verizon’s portfolio of assets and services makes it one of the world’s leading communications, information, and entertainment providers. The company’s two primary services include wireless and wireline.
Verizon was formed in 2000 after Bell Atlantic and GTE Corp merged. Since then, the company has paid quarterly dividends and increased them yearly starting in 2007.
The stock is a steady dividend payer for those seeking higher dividend yields while trading off faster future dividend growth.
20. Walmart (WMT)
Walmart is an American multinational retail corporation. They operate thousands of retail chain stores and clubs in dozens of countries. Also, the company has a robust online presence.
When it comes to dividend history, Walmart is no slouch.
They declared their first annual dividend in 1974. And have increased their cash dividend annually since then.
Dividend investing tip: Save time and make more money: stock research made easy.
20 Best Dividend Stocks + Dividend Investing Tips: Wrap Up
I love investing in today’s 20 best dividend stocks for their long-term wealth-building capabilities. Get started or continue your dividend investing journey. You will be glad you did!
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Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.