Passive Income, Dividend Growth, Capital Gains, And Total Returns
Today I would like to report the stocks in my dividend portfolio.
Furthermore, I will share some of my favorite dividend investing tips including links to free resources and articles available on the site. These suggestions, tips, and resources have worked for me, so I hope they will work for you too.
Each Stock In My Dividend Portfolio Is Selected To Meet My Investment Objectives
I hand-pick each dividend stock in my dividend growth portfolio to deliver:
- Current dividend income
- Future dividend growth
- Long-term stock price appreciation
Absent these criteria, I sell. Or, better yet, never buy in the first place.
Do I get every dividend stock pick right? Is this the best dividend portfolio?
Unfortunately, the answer to these questions is no. Even with nearly 50 years of DIY dividend investing experience, my track record could be better.
However, I get enough right to benefit from the long-term wealth-building qualities I love about dividend stocks. Furthermore, I strive never to make the same mistake twice.
So next, please allow me to highlight each company in my dividend stock portfolio.
Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.
1. Automatic Data Processing (ADP)
ADP provides businesses worldwide with payroll processing services, employee benefits administration, and other human capital management solutions.
The company started paying a recurring cash dividend in 1974. In 1975 ADP increased its dividend for the first time and has done so every year since.
Dividend investing tip: Learn as much as possible about investing in dividend stocks. Knowledge is power and translates directly to solid investment returns.
Ready to learn more? Then check out the Financial Freedom Dividend Investing Course offered by Simply Investing.
2. American Electric Power (AEP)
AEP produces, transmits, and sells electricity to its customers centered around Ohio in the midwestern U.S. and Texas in the south.
AEP has paid a cash dividend every quarter since 1910. Furthermore, AEP has paid higher yearly dividends, dating back to 2010.
Dividend investing tip: Invest in companies that increase their dividends regularly. They are also known as dividend growth stocks. A growing dividend is a safer dividend.
3. Abbott Laboratories (ABT)
First, Abbott is a diversified healthcare company. They make products that assist people with cardiovascular diseases, diabetes, and chronic pain. In addition, they make profits from nutritional products, pharmaceuticals, and diagnostic testing equipment.
Furthermore, the company has declared consecutive quarterly dividends since 1924. Management has also increased the dividend payout annually since 1972.
Finally, I worked at Abbott for ten years in various corporate finance roles during the 1990s. The company has changed a lot since I worked there.
However, one thing has stayed the same. Specifically, I still own Abbott stock. So now, the company works for me.
Dividend investing tip: Set a monthly dividend income goal. Then go out and achieve your goal by investing wisely and thinking long-term.
4. AbbVie (ABBV)
Founded in 2013, AbbVie was formed through a spin-off of Abbott’s 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: Buy and hold enough dividend stocks for adequate diversification. Never let one dividend-paying stock become too large a piece of the pie.
5. Altria (MO)
Altria has been a market leader in the U.S. tobacco industry for decades. However, Altria aims to diversify and be the U.S. leader in authorized, non-combustible, reduced-risk products. In addition, the company invests in other “sinful” areas, including alcohol and cannabis.
While I don’t smoke, I love collecting my dividends from Altria. The company’s stock is an excellent choice for a high dividend portfolio, and management has increased the dividend yearly since 1970.
Dividend investing tip: High dividend yields are neither good nor bad. However, they often indicate slower growth or higher-risk dividend stocks.
6. 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.
Dividend investing tip: Do you ever think about what is a good dividend yield?
I like including higher and lower-yield stocks in my dividend portfolio. However, when I invest in low-dividend yield stocks, I require higher dividend growth potential.
7. Becton Dickinson (BDX)
Becton Dickinson develops, manufactures, and sells various healthcare products.
Their product lines include medical supplies, devices, laboratory equipment, and diagnostic products. Hospitals, doctors, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public are their primary customers.
The company has increased its dividend every year since 1972. But, most noteworthy, the company is a Dividend King boasting more than 50 consecutive years of dividend growth.
Dividend investing tip: I prefer investing in Dividend Kings and Dividend Aristocrats. These stock lists are great hunting grounds for high-quality dividend payers.
8. Cisco (CSCO)
Cisco is a dominant player in computer networking equipment, including switches, routers, and firewalls. One of the company’s goals is to sell more software and services to supplement hardware product revenues.
The company was founded in 1984 but did not pay dividends until 2011. However, management has increased the dividend at least once yearly since 2011.
Dividend investing tip: Dividend stocks are an excellent form of passive income. However, to ensure the safety of your passive income stream, invest in the highest-quality dividend stocks and companies with enduring business models.
9. Clorox (CLX)
The Clorox Company is a leading manufacturer and marketer of consumer products. They compete in 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.
Dividend investing tip: Companies are not required to pay dividends. Thus, your future dividend payments are not guaranteed. As a result, it pays to do your research before investing.
10. Coca-Cola (KO)
As most consumers like you and I know, Coca-Cola is a leading beverage company. They own some of the world’s most well-known and influential brands. But, unlike arch-rival Pepsi, they do 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 doled 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.
Dividend investing tip: You can get rich off dividends. However, it takes time, patience, and savvy investing.
11. Cummins (CMI)
Cummins operates in the heavy equipment and automotive industry.
They design, manufacture, sell, and service diesel and alternative fuel engines and electrical generator sets. Company-owned and independent dealer facilities provide service to customers.
Finally, company management has increased the dividend rate consistently since 2006.
Dividend investing tip: In my younger days, I reinvested all my dividends received. Now, I let them accumulate in cash and use them to pay living expenses.
Whether to reinvest dividends or not, the choice is yours!
12. Dominion Energy (D)
Dominion Energy is one of the largest energy producers in the United States utility sector.
Headquartered in Richmond, Virginia, they have millions of customers across over a dozen states. They operate through two primary business units: Power Delivery and Power Generation.
Unfortunately, management should have been less generous with its dividend increases. So, the company cut its payout in 2021, putting it on firmer footing moving forward with a lower dividend payout ratio.
Dividend investing tip: The dividend payout ratio is an excellent metric for assessing dividend safety.
13. Duke (DUK)
Duke is a regulated utility focused on generating electricity, distributing natural gas, and producing energy from renewable sources. Their operations stretch from the Midwest down into the southeastern United States.
Duke has been paying dividends annually since 1927. Furthermore, the company has a nice consecutive annual dividend increase streak going. Specifically, management has increased the dividend every year since 2005.
Dividend investing tip: Living off dividends takes time and money. Thus, consider dividend investing a journey, not a destination.
14. Emerson (EMR)
Emerson operates an industrial business through two core business platforms: industrial automation and commercial and residential solutions. Their customers span many areas, including manufacturing, food, beverage, energy, healthcare, and transportation.
Having increased its dividend annually since 1957, Emerson is a Dividend King. However, dividend growth has slowed dramatically in recent years.
Dividend investing tip: Setting plans and objectives as a dividend investor is essential. Goals turn your dividend income dreams into reality.
15. Genuine Parts (GPC)
Genuine Parts distributes automotive replacement parts and industrial replacement parts. In North America, they sell under their well-known NAPA brand name.
GPC has paid a cash dividend every year since going public in 1948. But, what stands out is that the company has increased its dividend yearly since 1957. This record makes Genuine Parts another Dividend King.
Dividend investing tip: Don’t forget about dividend-paying index funds. They are an excellent alternative to individual stocks, especially for those just starting their investing journey.
16. 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 common.
Dividend investing tip: Don’t sacrifice growth as a dividend investor. Choose your stocks wisely for increased share prices plus regular dividend income.
17. 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.
The company has paid a quarterly dividend since it became public in 1928. 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 my dividend growth portfolio.
Dividend investing tip: Look for consistent dividend payers with long histories of paying dividends.
18. 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 the internet-based ledger technology, blockchain.
The company has paid consecutive quarterly dividends since 1916. Also, management has increased dividends annually since 1996. This accomplishment makes IBM a Dividend Aristocrat.
Dividend investing tip: Stick with your investment strategy long enough to achieve your dividend investing tipping point. The tipping point is when your dividend income portfolio can pay all your recurring living expenses.
That’s what I call financial freedom.
19. Johnson & Johnson (JNJ)
JNJ is one of the world’s largest and most broadly-based healthcare companies. They primarily focus on developing, marketing, and selling medical devices and pharmaceutical products.
Annual dividend increases from 1963 forward make for another King in my dividend portfolio.
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.
Dividend investing tip: JNJ is one of my oldest and largest holdings. Thus, it pays to get started as a young investor because the younger you are, the more time you have to let your dividends compound.
20. Kimberly Clark (KMB)
Kimberly Clark makes and sells goods used in households and institutions. Personal Care Brands, Consumer Tissue, and K-C Professional are the company’s primary business units.
You may know Kimberly Clark the best for its Huggies diapers and Kleenex brand tissues. However, I best see the company’s history of increasing yearly dividends since 1973.
Dividend investing tip: There is rarely a wrong time to buy dividend stocks for long-term investors. Yes, some periods are better, but it’s tough to time the market, so I don’t even try.
21. 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 money by charging these franchisees rents 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.
22. 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 since 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.
Dividend investing tip: You can make between $1,000 and $10,000 in annual dividend income from a $100,000 portfolio. The exact amount of dividends depends on your portfolio’s dividend yield.
23. Medtronic (MDT)
Medtronic is a global healthcare company providing medical technologies, services, and solutions in the following areas of care:
- Cardiac and vascular
- Minimally invasive therapies
- Restorative therapies
- Diabetes services and solutions
The company started paying a quarterly cash dividend in 1977. In 1978, the company increased its dividend payment for the first time and has continued to do so yearly.
Dividend investing tip: Dividends aren’t free money. Thus, it is essential to learn why and how companies pay dividends.
24. 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.
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.
25. 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. At the same time, 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.
Dividend investing tip: Dividend investors should monitor their asset allocation. I do not invest all my money in dividend stocks, choosing to hold some money in bonds and cash. As the old saying goes, “Don’t put all your eggs in one basket.”
26. Norfolk Southern (NSC)
Norfolk Southern operates nearly 20,000 miles of railroad. They do so in more than 20 states and the District of Columbia, serving every major container port in the eastern United States.
The company is a major transporter of industrial products. Most noteworthy, coal, automotive parts, automobiles, chemicals, metals, and construction materials.
NSC has paid regular quarterly stock dividends since 1982, never missing a quarter.
Dividend growth is solid. However, management will wisely pause or slow annual dividend increases when the economy hits a rough patch. Thus, you won’t find NSC on the Dividend Kings or Aristocrats lists.
Dividend investing tip: When interest rates are higher, investors have interest income-generating alternatives to dividend stocks. As a result, rising interest rates can put downward pressure on dividend stock prices.
27. Paychex (PAYX)
Like ADP, Paychex is a leading integrated human capital management (HCM) solution provider. However, unlike ADP, the company is smaller, mainly operates in the U.S., and targets smaller and mid-sized businesses.
Paychex began consistent payments of 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.
Dividend investing tip: Starting a dividend portfolio is easy. Staying invested through market downturns is much more challenging. So, be patient and think long-term.
28. 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 ranks of Dividend Aristocrats.
Dividend investing tip: Don’t get complacent because you can lose money on dividend stocks. Picking stocks wisely and investing long-term are the best cures for short-term losses.
29. Philip Morris (PM)
Philip Morris is a leading international tobacco company. Altria, another of the stocks in my dividend portfolio, created the business in March 2008 through a stock spin-off.
The company’s cigarette brands are well-known worldwide. However, smoke-free alternatives to cigarettes are a growing piece of annual revenues.
Philip Morris immediately started paying dividends after its split from Altria in 2008. Furthermore, management has increased the dividend every year since then.
Dividend investing tip: Can you make $100,000 yearly from dividends? The answer is yes, you definitely can. However, it will likely take an investment of over 2 million dollars.
Yes, that’s a sizeable chunk of money. So remember what I said earlier, dividend investing is a journey, not a destination. However, if you think you can, then you can!
30. Procter and Gamble (PG)
P&G is a branded consumer goods company. Popular products include Tide laundry detergent, Pampers diapers, and Bounty paper towels, to name just a few.
During 1891, Procter & Gamble stock started 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 starting in 1957.
This impressive dividend history record makes P&G, you guessed it, a 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.
31. Raytheon Technologies (RTX)
In April 2020, Raytheon and United Technologies completed a mega-merger creating one of the largest defense contractors in the world. They operate four platform businesses:
- Pratt & Whitney aircraft engines & auxiliary power units
- Collins Aerospace & Defense products
- Intelligence, space & airborne systems
- Integrated defense & missile systems
Since I’ve owned Raytheon, I have enjoyed consistent dividend income, sizeable dividend growth, and solid share price appreciation.
Plus, it doesn’t seem like the world is getting more peaceful. So, I like having at least one defense contractor in my dividend stock portfolio that performs well when global conflicts arise.
Dividend investing tip: Different stocks have different dividend payment patterns. Understand when your stocks pay dividends to build a portfolio for income every month of the year.
32. Realty Income (O)
Realty Income is a real estate investment trust (REIT). The company owns thousands of commercial properties. The properties generate rental revenue from long-term net lease agreements with tenants.
Some well-known tenants include Walgreens, 7-Eleven, Dollar General, and FedEx.
Unlike the rest of my dividend growth portfolio stocks, 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.
Dividend investing tip: I don’t chase monthly dividend stocks. Instead, I place a higher value on other dividend metrics. Thus, stocks that pay quarterly dividends are fine with me.
33. Southern Company (SO)
Southern provides energy to customers in the United States through:
- Electric operating companies
- Natural gas distribution companies
- A generation company serving wholesale customers
The company’s service territories are primarily in the Southeastern and Mid-South United States.
Every quarter for nearly 75 years, Southern has paid a dividend to its shareholders equal to or greater than the previous quarter. The company started increasing the dividend rate in 2002 and has hiked it yearly.
Dividend investing tip: Understand each of your stock’s dividend payment patterns. However, don’t obsess over it. There are other more essential dividend metrics.
Sysco sells and distributes food and non-food products across the globe. Their primary customers are restaurants, healthcare businesses, educational institutions, and lodging establishments.
The company pays dividends every quarter, increases the dividend rate annually, and has done so since it began trading publically in 1970. This track record makes Sysco a Dividend King.
Dividend investing tip: It pays to have a good dividend investing strategy. A consistent approach to building a dividend investment portfolio helps an investor stay the course during difficult times.
35. 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.
Dividend investing tip: I’ve made many mistakes as a dividend investor. Most importantly, I learned from them and tried to avoid making the same mistake twice. I suggest you do the same.
36. 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.
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.
Dividend investing tip: One way to reduce risk is to dollar cost average into dividend stocks. Doing so means you will buy more shares when prices are low. And fewer shares when stock prices are high.
37. 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 who seek higher dividend yield while trading off faster dividend growth in the future.
Dividend investing tip: Every dividend investor should understand the pros and cons of dividend stock investing.
38. Walgreens Boots Alliance (WBA)
Walgreens is the first global pharmacy-led health and well-being enterprise. In the United States, they operate under the brands Walgreens and Duane Reade.
The company is a market leader in Europe too. The Boots and Alliance Healthcare brands are their calling cards.
Walgreens stock began trading on the public markets in 1927 and began regular dividend payments in 1934. Better yet, the WBA dividend has increased yearly since 1976.
Dividend investing tip: Unfortunately, dividend stocks are subject to capital gains and income taxes.
One of your investment objectives should include minimizing taxes. Consult with your tax advisor because there are many intelligent ways to save money on taxes within the scope of the law.
39. 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: Dividends from stocks are an excellent means to augment your income in retirement. Don’t delay planning for a secure retirement.
40. Wisconsin Energy (WEC)
WEC, a Fortune 500 company, is one of the largest electric generation, distribution, and natural gas delivery holding companies in the United States. Much of the company’s earnings come from Wisconsin and Federal Energy Regulatory Commission regulations.
Regulated utility companies are some of the most steady and consistent dividend stocks for investors.
WEC has paid dividends every quarter since 1942. And they have a nice consecutive annual dividend increase streak going. Specifically, they have increased the dividend every year since 2004.
This company’s stock shows how slow and steady investments can win the race.
Dividend investing tip: If you have made it this far, you will love our archives of dividend investing articles.
Okay. That’s it. Now you know a little about the 40 stocks in my dividend portfolio.
So, please allow me to wrap up. And before you go save this image to your Pinterest board.
My Dividend Portfolio Example
Here is a list of the 40 stocks in my dividend growth portfolio.
- Automatic Data Processing
- Abbott Labs
- Becton Dickinson
- Dominion Energy
- Duke Energy
- Genuine Parts
- Home Depot
- Hormel Foods
- Johnson & Johnson
- Kimberly Clark
- NextEra Energy
- Norfolk Southern
- Philip Morris
- Procter and Gamble
- Raytheon Technologies
- Realty Income
- Southern Company
- Walgreens Boots Alliance
- Wisconsin Energy
Perhaps you should include some of these companies in your dividend portfolio over time.
I don’t know for sure. That’s for you to decide. After all, do your research because it’s your money!
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.