Best Dividend Kings for Decades of Dividend Growth

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last updated 30 September 2024

Dividend Kings are a unique class of stock that offers investors a phenomenal track record of annual dividend increases.

These elite members of the Dividend Aristocrats (companies in the Standard & Poor's 500-stock index that have raised payouts once a year for 25 years running) have far more extensive track records. Specifically, Dividend Kings must have a minimum of 50 consecutive years of uninterrupted annual dividend hikes.

Dividend Kings' appeal should be obvious in the wake of 2020's COVID-19 outbreak. Many dividend stocks cut or even suspended their payouts amid uncertainty and disruptions. Income investors who had hoped these companies were lower risk simply because they paid dividends received a rude awakening as the payout cuts often came alongside deep share price declines.

With half a century of increasing distributions, however, Dividend Kings have a great track record that adds a layer of stability in an otherwise uncertain market environment. Nothing is ever certain on Wall Street, but these are 14 of the best stocks to buy for dividend growth. The names featured here are all longtime leaders that each exhibit more than 55 years of increases — including one pick with a track record of 70 straight dividend hikes — making them a bit more trustworthy than your typical income investment.

Data is as of September 30. The list of Dividend Aristocrats is maintained by S&P Dow Jones Indices. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Dividend history based on company information and S&P data. Dividend-growth streaks include the current year if the company has announced a dividend hike in 2024.

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Hormel

Sector: Consumer staples
Market value: $17.4 billion
Consecutive dividend increases: 58
Dividend yield: 3.6%

Hormel Foods (HRL) is perhaps best known by consumers for its eponymous lunch meats, but it also offers other popular items including Skippy peanut butter, Chi-Chi's salsa and Dinty Moore stew. HRL's strong brand portfolio allows for consistent revenue, as well as steady dividends that have fueled 59 consecutive annual increases to its payout.

Minnesota-based Hormel was founded in 1891, and its stock has a strong long-term track record. Shares had a rocky 2023 as investors turned their attention to riskier growth stocks, but over the past 20 years, HRL stock has outperformed the broader S&P 500 on a total return basis (price change plus dividends).

Consumer staples stocks like Hormel are great ways to weather any economic downturn, as people cutting back on spending will eat at home more to save some cash. And with more than 40 brands that are either #1 or #2 in their category, that is sure to benefit the bottom line of one of Wall Street's top Dividend Kings.

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Lancaster Colony

Sector: Consumer staples
Market value: $4.9 billion
Consecutive dividend increases: 61
Dividend yield: 2.0%

Lancaster Colony (LANC) manufactures food products under a host of familiar consumer brands including Marzetti salad dressings, New York Bakery bread and Sister Schubert's cinnamon rolls, as well as licensed grocery products including Buffalo Wild Wings and Chick-fil-A sauces. The company sells its products directly to restaurants.

It's this foodservice segment that's particularly noteworthy, as it represents a big share of revenue. In fiscal 2024, which ended June 30, Lancaster Colony raked in $1.9 billion in total revenue, with a little under half of sales coming from restaurants and institutional buyers. With the COVID-related closures of the past few years likely behind us, LANC has stabilized and is putting up consistent revenue and profit numbers once more.

It's also a testament to LANC's long-term commitment to dividends that it did not interrupt its 61-year streak of consecutive payout increases during pandemic-related disruptions. In August 2024, the company announced that it had maintained its quarterly dividend of 90 cents per common share established in November 2023.

LANC stock has lagged the broad market in 2024, but over the past 20 years, it has matched the S&P 500's average annual return. And long-term investors have good reason to think that this Dividend King will continue to generously share its success with stakeholders going forward.

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Coca-Cola

Sector: Consumer staples
Market value: $310.2 billion
Consecutive dividend increases: 62
Dividend yield: 2.7%

Weighing in at roughly $310 billion in market cap and boasting some of the most powerful consumer brands on the planet, Coca-Cola (KO) is a blue-chip icon and a mainstay in many dividend portfolios.

There are a host of reasons underscoring the stock's stability, including six decades of dividend increases and more than 135 years of successful operations. Additionally, KO has long been a member of the Berkshire Hathaway equity portfolio, with Warren Buffett's holding company currently Coke's largest shareholder. Last but not least, the stable nature of its revenue in tough times makes Coca-Cola a "safe haven" of sorts, as seen in its notable gain in 2022, a year in which most other stocks on Wall Street stumbled.

Some have soured on Coca-Cola in recent years over fears that its sugary soft drinks are falling out of favor. However, it's worth noting the company has a wide array of brands that cater to the healthier-living trend, including Smartwater and Vitaminwater.

Plus, analysts see steady revenue growth for the company over the next several years. All in all, KO is one Dividend King with long-term stability unmatched by most other stocks.

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Nordson

Sector: Industrials
Market value: $15.0 billion
Consecutive dividend increases: 61
Dividend yield: 1.2%

Nordson (NDSN) isn't the most exciting member of the Dividend Kings. This mid-sized industrial stock is valued at around $15 billion and mainly manufactures adhesives, coatings, polymers and sealants.

But long-term dividend investors aren't always concerned with flash. The bottom line is that Nordson has a rich history of protecting shareholder value since its founding in 1935, with 61 years of consecutive dividend increases.

What's more, things are looking up in the short term, with NDSN increasing sales 2% year-over-year for a total of $662 million in fiscal 2024. A favorable acquisition influenced the increase, which offset a decrease in organic sales due to lower demand for the company's medical products and electronics.

Nordson may not be a household name, that's for sure. But it's a Dividend King worth considering all the same.

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Colgate-Palmolive

Sector: Consumer staples
Market value: $84.8 billion
Consecutive dividend increases: 62
Dividend yield: 1.9%

Colgate-Palmolive (CL) is a mainstay of households around the world, as well as a presence in many dividend investor portfolios. That's because it generates consistent, recession-proof revenue from its wide array of consumer brands that include Colgate and Tom's toothpaste, Speed Stick deodorant, Palmolive soap and Hill's pet food, among others.

CL is a go-to investment for low-risk portfolios thanks to stable operations in any environment. After all, folks will buy toothpaste and cleaning products regardless of whether the economy is up or down.

Its reliable commitment to dividend increases makes this an attractive option among Dividend Kings for those looking for one of the best long-term investment stocks to buy. And with dividends less than two-thirds of total earnings, there is ample headroom for future increases down the road, too.

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Cincinnati Financial

Sector: Financials
Market value: $21.2 billion
Consecutive dividend increases: 64
Dividend yield: 2.4%

Cincinnati Financial (CINF) is an investment and insurance company based in Ohio, with about 5,400 employees and a market value of around $21 billion.

Unlike high-profile insurance firms such as American International Group (AIG) that were forced to cut or eliminate dividends during the 2008 financial crisis, CINF has a tremendous track record of consistency. This includes six straight decades of dividend increases. And lately the boosts haven't been just a penny here or there, either.

In March 2024, CINF boosted its quarterly payment by 8% to 81 cents per share. The current payout is up 84% from where it was 10 years ago.

What's more, high-single-digit profit-growth projections for this fiscal year and next should more than cover that dividend twice over, a hint that future increases are well within the budget.

The financial stock has outpaced the broader S&P 500 by a healthy margin so far this year, and the company's rock-solid insurance business should continue to rake in the premiums and perform well over the long term. That consistency is the hallmark of a good buy-and-hold income investment and one with a high likelihood of increased dividends down the road.

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Johnson & Johnson

Sector: Healthcare
Market value: $387.9 billion
Consecutive dividend increases: 63
Dividend yield: 3.1%

Though not a mega-cap tech stock, healthcare icon Johnson & Johnson (JNJ) is among the top 20 U.S. corporations by market capitalization. This scale gives it unrivaled stability, particularly since many index funds are weighted by market value and, as a result, hold an outsized amount of JNJ shares.

On top of a nearly $390-billion market cap and wide institutional ownership, this Dividend King is also one of just two corporations — fellow Dow Jones stock Microsoft (MSFT) being the other — that gets a vaunted AAA credit rating on its debt.

Johnson & Johnson spun off its consumer brands division in mid-2023 in order to free up its high-margin healthcare firm. JNJ is now able to focus on developed branded drugs to treat a variety of conditions such as cancer and HIV, while the now-split Kenvue (KVUE) owns massive over-the-counter products like Tylenol and Benadryl.

And to add another layer of stability, healthcare is an incredibly reliable sector, since those who are sick seek out care regardless of whether the market is down or the unemployment rate is up. With unrivaled scale and a business model that's built to last, JNJ stock should be a consistent performer in any portfolio.

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Parker-Hannifin

Sector: Industrials
Market value: $80.8 billion
Consecutive dividend increases: 68
Dividend yield: 1.0%

Parker-Hannifin (PH) is another low-profile industrial stock with a long-term commitment to dividend increases. The Ohio-based company was founded in 1917 and, for more than half of its existence, has delivered consecutive annual dividend increases to shareholders.

PH manufactures motion and control technologies, thermal shields, fluid control systems, jet engines and other aerospace parts. While a lot of its business is decidedly mundane, providing coatings and hoses and pumps, there is an innovative core to Parker-Hannifin that's looking to play an increasingly important role in the age of climate change.

For instance, in 2022, privately held Eviation Aircraft engaged PH's aerospace division to develop six technology packages for a first-of-its-kind all-electric commuter aircraft. This kind of experimentation might not pay off immediately, but it ensures the solid core business won't be left behind in the decades ahead.

The dividend history of Parker-Hannifin also shows a long-term perspective. Just six short years ago, PH was paying 88 cents per share as its quarterly dividend. Despite the significant disruptions caused by the pandemic, inflation and rising interest rates, the company is now delivering a $1.63 per share dividend — almost double the payday!

This, alongside the six decades of increases, is proof positive that PH is a company committed to paying back its shareholders. And that makes it a solid choice among Dividend Kings to watch going forward.

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Emerson Electric

Sector: Industrials
Market value: $62.0 billion
Consecutive dividend increases: 67
Dividend yield: 1.9%

Like many of the Dividend Kings featured here, the more than $60-billion Emerson Electric (EMR) is appealing because it's a company with fingers in many pies.

EMR provides various automation and measurement solutions around the globe, including products for oil refiners, chemicals companies, life sciences firms and food and beverage producers. It also makes HVAC gear that includes "smart" thermostats and temperature sensors.

These markets have substantial long-term growth potential, particularly the automation line that is helping many industries keep labor costs down and defend their margins in an era of higher inflation. Additionally, the harsh realities of global warming and extreme weather have made modern HVAC systems a mainstay for the growing middle classes in emerging markets.

Emerson was founded back in 1890 in St. Louis and has a long and proven history of dividend increases across all manner of market environments. And based on sustainable tailwinds for its broader business model, there's a good chance for future paydays to be even bigger down the road.

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Genuine Parts

Sector: Consumer discretionary
Market value: $19.1 billion
Consecutive dividend increases: 68
Dividend yield: 2.8%

Genuine Parts (GPC) is an almost $20-billion automotive replacement parts dealer and industrial materials supplier perhaps best known for its NAPA nameplate.

Its goods are necessary for maintenance of all manner of vehicles from hybrids and electric vehicles (EVs) to trucks to buses to motorcycles and even farm equipment. It also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products across a wide swath of North America, Europe, Australia and Asia.

GPC is admittedly a bit more cyclical than some of the other Dividend Kings on this list. However, with the average age of a vehicle on U.S. roads now up to a stunning 12.6 years old, according to research from S&P Global Mobility, it's clear that repairs and maintenance are a necessary part of transportation for households regardless of the ups and downs of the broader economy.

Genuine Parts was incorporated almost 100 years ago and has weathered plenty of storms along the way. However, one thing it has never given up on regardless of the economic challenges is its six-decade commitment to dividend increases.

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Northwest Natural

Sector: Utilities
Market value: $1.6 billion
Consecutive dividend increases: 68
Dividend yield: 4.8%

Northwest Natural Holding (NWN) is a regulated natural gas utility valued at $1.6 billion. NWN serves about 2 million customers in Oregon and southwest Washington. It also provides about 33,000 water and wastewater connections in the Pacific Northwest and Texas, though the gas business is its bread and butter.

Despite declining natural gas prices, NWN is seeing steady top- and bottom-line growth even in the highly regulated utilities sector. Although that growth is expected to slow, analysts believe the company's future revenue will climb in rough lockstep with the industry.

Northwest Natural was founded in 1859 and has deep roots in the region. This Dividend King also has a long-term commitment to sharing the wealth with its stakeholders, as evidenced by more than six decades of consecutive dividend hikes.

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Procter & Gamble

Sector: Consumer staples
Market value: $407.0 billion
Consecutive dividend increases: 68
Dividend yield: 2.3%

Procter & Gamble (PG) is perhaps one of the best-known dividend stocks on Wall Street. It is also one of the most consistent when it comes to increasing those payouts over time. The more than $400-billion consumer giant has some of the biggest brands in the world, adding up to large and reliable revenue streams that are hard for other companies to match.

PG's wide product portfolio includes Pampers diapers, Tide laundry detergent, Charmin toilet paper and a host of other goods that are mainstays of consumers worldwide. These also are recession-proof expenses that don't get carved out of family budgets when times get a bit tight, so there's no risk of a steep and unexpected pullback as you might see in more cyclical stocks.

P&G just ended its fiscal year in July, tallying net earnings per share of $6.02. Considering annual dividends total just $4.03 per share (or approximately two-thirds of those earnings), there's a good chance of continuing dividend increases going forward as the company prospers.

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Dover

Sector: Industrials
Market value: $26.3 billion
Consecutive dividend increases: 70
Dividend yield: 1.1%

You might not recognize this stock immediately, but at more than $26 billion in market value, Dover (DOV) is actually in the top 350 or so U.S. corporations when ranked by size. The industrial stock is focused on specialty machinery, including after-market vehicle exhaust systems, precision bar coding and logistics solutions, refrigeration systems and industrial winches.

The wide array of products lends some diversification to Dover's top line. And while some corporations are struggling with supply-chain disruptions, it's worth noting that DOV is projecting a steady, albeit modest, revenue rise this fiscal year and growth commensurate with industry peers.

What's really impressive is the uptrend in profits, as earnings per share are expected to jump to $9.15 in fiscal 2024 from $8.79 in 2023. And in fiscal 2024, they're expected to reach $9.72.

The company has a track record of 68 straight years of dividend boosts, one of the best among the Dividend Kings. And based on those improving fundamentals, investors can depend on more payout increases going forward, too.

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American States Water

Sector: Utilities
Market value: $3.1 billion
Consecutive dividend increases: 70
Dividend yield: 2.3%

When it comes to reliability and income, utility stocks are the kind of investments that many dividend investors take to the bank. American States Water (AWR) might not be the first name that you think of when you think of utilities, but given its tremendous track record of dividend increases, this stock is certainly worth a look.

Unlike power companies, AWR provides water and wastewater services to municipalities and military bases. All told, its connections give it access to more than 264,000 customers located throughout 10 counties in California. It also has a very small electricity generation business serving about 25,000 customers in the San Bernardino County mountain communities, but its water business is what really drives the bottom line.

Water is as much a necessity as electricity, and as a result, American States has tremendous reliability in its revenue — and consistent increases to its dividends, too. This is based on its best-in-class history of an amazing 70 years of consecutive hikes — the most of any of the Dividend Kings featured here.

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Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.