In this article, we will discuss some of the best dividend stocks with consistent dividend payments.
Stocks that pay dividends, especially those backed by strong financial health and attractive yields, offer investors a reliable income stream, protection during market declines, and the potential for steady investment growth. This year, investors have faced a dilemma: stick with their current strategies or shift focus toward the leading technology stocks driving much of the market’s gains. At the same time, many are considering how best to prepare their portfolios for a potential economic slowdown, given uncertainty about the Federal Reserve’s ability to achieve a soft landing. Analysts recommend incorporating dividend stocks into portfolios to better navigate these conditions.
Also read: 8 Magnificent Dividend Growth Stocks to Buy Now
Savita Subramanian, an equity and quant strategist at Bank of America Corp., also advised investors to load up on dividend stocks. Here is what the analyst said:
“You want to be in safe dividends — and I know this is the most boring call of all time, but sometimes boring is good. We believe that we are now in a total return world in which the contribution of dividends to total market returns could be significantly higher than it was in the last decade, a period marked by falling cash yields and lofty price returns. We advise investors to seek out companies with above-market and secure (not stretched) dividend yields.”
Investors have shown growing interest in companies that consistently increase their dividends. This has pushed many firms to prioritize maintaining and growing dividends, even during economic challenges. Such efforts have paid off, as companies with a history of dividend growth have delivered strong long-term returns. A report by Cohen & Steers highlighted this trend, noting that between 2000 and 2010, dividend-paying companies outperformed non-payers by an annual margin of 620 basis points while exhibiting significantly lower risk, as measured by standard deviation. Over a 30-year span ending in 2011, the benefits of dividend-paying firms were even more evident. Among these, companies that initiated or raised dividends within the prior year consistently outperformed both other dividend payers and non-payers, achieving higher returns with reduced volatility.
In addition to offering strong returns, stocks with consistent dividend payouts have become a vital source of personal income. Research from S&P Dow Jones Indices revealed that dividends have steadily grown as a share of personal income over the last four decades. Since Q4 1980, the contribution of dividends to personal income has risen from 2.68% to 7.88% in Q2 2024, while income from interest has declined from 14.58% to 7.61% during the same period. The report also highlighted the impressive growth of dividends among companies in the U.S. Dividend Growers Index. Over the past 15 years, these companies have achieved an average annual dividend growth rate of 13.71%, significantly outpacing the 2.21% average annual growth rate of the US Consumer Price Index (CPI) over the same period.
Dividend stocks are bound to regain their prominence, even though the tech sector has been dominating the spotlight lately. In view of this, we will discuss some of the best consistent dividend stocks to buy.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
We compiled this list by examining Insider Monkey’s Q3 2024 database and identifying companies that have consistently increased their dividends for a minimum of 15 consecutive years. From this pool, we specifically chose stocks with dividend yields of at least 1% as of December 4. The stocks are ranked in ascending order of the number of hedge funds having stakes in them as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 30
The J. M. Smucker Company (NYSE:SJM) is an American food company that manufactures a wide range of food and beverage products. Originally established as a jelly company in 1897, the business has grown into a significant player in the consumer foods sector. Its operations are far more diverse than they may appear and extend beyond its current product range. The management team frequently sells off products that are no longer aligned with its strategy while acquiring brands they believe will boost profitability.
In fiscal Q2 2025, The J. M. Smucker Company (NYSE:SJM) reported revenue of $2.27 billion, which showed a 17% growth from the same period last year. The revenue also beat analysts’ estimates by over $6.2 million. The company’s gross profit came in at over $886 million, which also jumped by 22% on a YoY basis. Middle Coast Investing highlighted strengths in the company’s business in its Q2 2024 investor letter. Here is what the firm said:
“The J. M. Smucker Company (NYSE:SJM), like Lululemon, is an S&P 500 component and one of the worst 70 or so stocks in the S&P 500 this year. The maker of Jif, Smuckers jams, Uncrustables, Folgers Coffee, and Dunkin Coffee pods has had a bad 10 months since announcing its purchase of Hostess Brands (Twinkies, Hostess Cupcakes, etc.). Hostess was expensive and exposes J.M. Smucker to the risk that the new weight-loss drugs suppress diehard consumers’ appetite for sweets.
I think J.M. Smucker shares have suffered enough, and are at a point where a buy should work. The company is producing ample free cash flow to cover its likely to grow ~4% dividend while also paying down debt, which will improve both its profitability and its stock value. J.M. Smucker’s products and brands are leaders, including Hostess. I don’t think this will be a huge winner, but I do think there’s relatively safe upside here. I should note that another of my idea sources, Thomas Lott, mentioned SJM on Cash Flow Compounders; I had already been looking at the company for a while, but it’s always good to see a smart investor following it.”
The J. M. Smucker Company (NYSE:SJM)’s cash flow generation has allowed the company to pay consistent dividends to shareholders. In the most recent quarter, its operating cash flow came in at $404.2 million, up from $177 million in the prior-year period. The company’s free cash flow grew to $317.2 million, from $28.2 million in the same quarter last year.
The J. M. Smucker Company (NYSE:SJM) currently pays a quarterly dividend of $1.08 per share, having raised it by 2% in July this year. The company maintains a 23-year streak of dividend growth, which makes SJM one of the best dividend stocks on our list. The stock has a dividend yield of 3.74%, as of December 4.
At the end of Q3 2024, 30 hedge funds tracked by Insider Monkey reported having stakes in The J. M. Smucker Company (NYSE:SJM), compared with 34 in the previous quarter. These stakes have a collective value of over $834.5 million. Among these hedge funds, Ariel Investments was the company’s leading stakeholder in Q3.
9. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 41
The Clorox Company (NYSE:CLX) is a California-based company that manufactures a wide range of consumer and professional products. The company has faced significant challenges in recent years. The pandemic initially boosted sales as demand for cleaning products surged, but it overestimated the long-term shift in consumer behavior toward heightened hygiene. This miscalculation left Clorox overcommitted once pandemic restrictions eased. Adding to its troubles, the company suffered a cyberattack in 2023. Despite these setbacks, it has reported that its supply chain is now fully restored, along with most of the market share lost during the disruption. Since the start of 2024, the stock has surged by nearly 3%.
In fiscal Q1 2025, The Clorox Company (NYSE:CLX) reported a 27% YoY growth in its revenue at $1.76 billion. The company marked its eighth consecutive quarter of gross margin expansion, driven by solid cost-saving measures, and remains on track to fully restore its gross margin by fiscal year 2025. It also finalized the divestiture of its Better Health VMS business, building on the earlier sale of its Argentina operations. These actions align with the company’s strategy to streamline its portfolio, reduce volatility, accelerate sales growth, and enhance its structural margin performance.
In the first nine months of its fiscal year, The Clorox Company (NYSE:CLX) reported an operating cash flow of $221 million, which showed a 1,005% growth from the same period last year. The company’s quarterly dividend currently comes in at $1.22 per share for a dividend yield of 2.92%, as of December 3.
The number of hedge funds tracked by Insider Monkey owning stakes in The Clorox Company (NYSE:CLX) grew to 41 in Q3 2024, from 38 in the previous quarter. The collective value of these stakes is over $1.66 billion. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.
8. Canadian Natural Resources Ltd (NYSE:CNQ)
Number of Hedge Fund Holders: 48
Canadian Natural Resources Ltd (NYSE:CNQ) ranks eighth on our list of the best dividend stocks. The Canadian oil and natural gas company. It stands out in the Canadian energy sector thanks to the diversity of its production operations. While it is widely recognized for its oil sands production, the company also holds assets in conventional heavy oil, light oil, offshore oil, natural gas, and natural gas liquids. In most instances, it fully owns these assets, allowing its management the agility to shift capital across its portfolio quickly and capitalize on the most promising market opportunities. the stock has surged by over 6% since the start of 2024.
In the third quarter of 2024, Canadian Natural Resources Ltd (NYSE:CNQ) reported revenue of $2.1 billion and its net earnings from operations came in at $2 billion. The company reported robust average production of approximately 1,363,000 BOE/d in Q3 2024, comprising 1,022,000 bbl/d of liquids and over 2.0 Bcf/d of natural gas.
Canadian Natural Resources Ltd (NYSE:CNQ) also grabs investors’ attention from a cash point of view. In the most recent quarter, the company generated over $3 billion in operating cash flow and $3.9 billion in adjusted funds flow. During the quarter, it returned $1.2 billion to shareholders through dividends.
On October 7, Canadian Natural Resources Ltd (NYSE:CNQ) declared a 7% hike in its quarterly dividend to C$0.5625 per share. This marked the company’s 26th consecutive year of dividend growth. The stock supports an attractive dividend yield of 4.83%, as of December 4.
Canadian Natural Resources Ltd (NYSE:CNQ) was a part of 48 hedge fund portfolios at the end of Q3 2024, up from 46 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $3.24 billion.
7. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 50
Caterpillar Inc. (NYSE:CAT) is an American company that specializes in construction, mining, and other engineering equipment. The company operates through multiple segments, catering to diverse industries such as construction, mining, and power generation. Its extensive product range helps reduce dependency on any single sector or region, offering resilience during economic uncertainties. In recent years, Caterpillar has prioritized expanding its product lineup and incorporating sustainability into its operations. These strategic efforts focus on achieving sustained profit growth by addressing changing customer demands and advancing technological capabilities. This approach strengthens its position as a market leader, enabling it to influence industry trends while maintaining a competitive edge in pricing and innovation.
The third quarter of 2024 was challenging for Caterpillar Inc. (NYSE:CAT). The company reported revenue of over $16 billion, which fell by 4% from the same period last year, and also missed analysts’ estimates by $133.6 million. The Construction Industries segment experienced a 9% drop in sales, mainly attributed to lower sales volumes and adverse price adjustments.
Despite these challenges, Caterpillar Inc. (NYSE:CAT)’s cash generation remained strong. The company reported an operating cash flow of $3.6 billion and its enterprise cash came in at $5.6 billion. Its cash position allowed it to distribute $0.7 billion to shareholders through dividends. On October 9, the company announced a quarterly dividend of $1.41 per share, which was in line with its previous dividend. Overall, it has been growing its dividends consistently for the past 30 years, which makes CAT one of the best dividend stocks on our list. The stock’s dividend yield on December 4 came in at 1.41%.
Insider Monkey’s database of Q3 2024 indicated that 50 hedge funds owned stakes in Caterpillar Inc. (NYSE:CAT), up from 49 in the previous quarter. The total value of these stakes is over $7.4 billion.
6. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 51
Chubb Limited (NYSE:CB) is an American Swiss insurance company that offers a wide range of related products and services to its consumers. In the third quarter of 2024, the company posted net income of $2.32 billion, up 13.8% from the same period last year. The company’s net premiums came in at over $12.2 billion, which showed a 5.4% growth from the prior-year period. Its P&C underwriting results for the quarter were strong, with significant contributions from all divisions, despite a period marked by widespread industry catastrophe losses. The combined ratio stood at 87.7%, and P&C underwriting income saw an increase of over 11.5%.
Insurance stocks stand out for their strong pricing power, regardless of the economic environment. In the wake of catastrophic losses, insurers can justify raising premiums, and even during periods of fewer claims, they can cite the inevitability of future risks to support premium increases. Essentially, insurers operate as steady, profit-generating machines. Chubb Limited (NYSE:CB) is particularly appealing due to its emphasis on high-income customers, especially in its homeowner insurance segment. Wealthier individuals are less likely to alter their spending habits or default on bills and premiums during minor economic downturns, providing greater stability for the company. Since the start of 2024, the stock has surged by over 25.2%.
The London Company made the following comment about CB in its Q3 2024 investor letter:
Initiated: Chubb Limited (NYSE:CB) – CB engages in the provision of commercial and personal property and casualty insurance, personal accident and health (A&H), reinsurance, and life insurance. While the company is headquartered outside the U.S., roughly 2/3 of its profits are generated in the U.S. with Asian markets representing another 20% of earnings. CB has a portfolio of top-performing, multibillion-dollar businesses that have substantial scale and yet potential for growth. CB has a culture of superior underwriting discipline, and management has a strong track record of expense control. CB also has a well-balanced mix of business by customer and product, with extensive distribution channels. We are attracted to CB’s globally diversified business model, superior underwriting and expense management, consistent and best-in-class profitability, upside potential from growth in Asia, and the potential to benefit from higher interest rates in its investment portfolio.
Chubb Limited (NYSE:CB) generated over $4.55 billion in operating cash flow during the quarter. Currently, the company pays a quarterly dividend of $0.91 per share for a dividend yield of 1.28%, as of December 4. It is one of the best dividend stocks on our list with 31 consecutive years of dividend growth under its belt.
Chubb Limited (NYSE:CB) was a popular buy among elite funds at the end of Q3 2024, with hedge fund positions growing to 51, from 46 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $10 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company.
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
An American multinational tech company, International Business Machines Corporation (NYSE:IBM) ranks fifth on our list of the best dividend stocks to invest in. The company has shifted its primary focus to artificial intelligence (AI) and cloud computing under the leadership of CEO Arvind Krishna, who took the helm in 2020. This strategic pivot has contributed to consistent revenue growth. The company distinguishes itself by offering a comprehensive technology stack through its Watsonx platform, paired with consulting services to support the implementation and management of generative AI. While its stock performance lagged over the past decade, IBM’s strong position in the AI sector has driven significant gains this year. The stock has been up by over 44.6% since the start of 2024, outperforming the broader market, which has returned over 28% during this period.
International Business Machines Corporation (NYSE:IBM) reported revenue of $15 billion in the third quarter of 2024, which showed a modest 1.46% growth from the same period last year. This revenue growth was driven by double-digit growth in its Software segment, including renewed momentum in Red Hat. Its generative AI business now exceeds $3 billion, reflecting a quarter-over-quarter increase of more than $1 billion. Looking ahead to the final quarter of 2024, the company anticipates constant currency revenue growth to remain consistent with the third quarter, supported by ongoing strength in Software. Management expressed confidence in achieving over $12 billion in free cash flow for the year, driven by continued operating margin expansion.
In the first nine months of 2024, International Business Machines Corporation (NYSE:IBM) generated $9.1 billion in operating cash flow and its free cash flow for the period came in at $6.6 billion. In Q3, the company returned $1.5 billion to shareholders through dividends. The company pays a quarterly dividend of $1.67 per share and has a dividend yield of 2.86%, as of December 4. It holds a 29-year track record of consistent dividend growth, which makes IBM one of the best dividend stocks on our list.
As per Insider Monkey’s database of Q3 2024, 56 hedge funds owned stakes in International Business Machines Corporation (NYSE:IBM), up from 54 in the preceding quarter. These stakes have a total value of over $1.73 billion.
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company that offers services in communications, technology, information, and entertainment. In the third quarter of 2024, the company reported revenue of $33.3 billion, which fell slightly by 0.02% from the same period last year. Its total wireless revenue came in at $19.8 billion, which showed a 2.7% growth on a YoY basis. The company recorded 389,000 total broadband net additions, marking the ninth straight quarter with over 375,000 net additions in broadband.
Verizon Communications Inc. (NYSE:VZ)’s pursuit of acquiring Frontier aligns with its goal of strengthening its presence in the expanding fiber-optic internet market. The increasing demand for high-speed internet, fueled by data-intensive activities such as video conferencing and streaming, supports this strategic move. A key benefit of the acquisition would be the expansion of Verizon’s fiber network, as Frontier’s fiber-optic services span 25 states, potentially extending the company’s reach to 31 states. The stock has delivered a 9.3% return year-to-date.
Third Point Management also highlighted the company’s acquisition in its Q3 2024 investor letter. Here is what the firm said:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
Verizon Communications Inc. (NYSE:VZ) has established itself as a reliable dividend stock, increasing its payouts annually for 18 consecutive years. So far this year, the company has generated $26.5 billion in operating cash flow, with free cash flow reaching $14.5 billion. It offers a quarterly dividend of $0.6775 per share, resulting in a compelling dividend yield of 6.37%, as of December 4.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 57 funds owned stakes in Verizon Communications Inc. (NYSE:VZ), compared with 67 in the previous quarter. These stakes are worth over $3.2 billion in total.
3. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 58
Lockheed Martin Corporation (NYSE:LMT) is an American aerospace and defense company that specializes in advanced technology systems, services, and products. The company is a strong dividend payer with 22 consecutive years of dividend growth. It currently pays a quarterly dividend of $3.30 per share and has a dividend yield of 2.55%, as of December 4.
Lockheed Martin Corporation (NYSE:LMT) is anticipated to sustain its dividend in the years ahead, backed by its strong cash flow generation. In the latest quarter, the company reported $2.4 billion in operating cash flow and $2.1 billion in free cash flow. Additionally, it returned $1.6 billion to shareholders through dividends and share buybacks during the same period.
Lockheed Martin Corporation (NYSE:LMT) has been attracting attention from investors, as defense contractors are generally seen as stable investment opportunities. This is mainly due to the US government, a reliable customer, and the consistency of defense budgets, which tend to remain stable even during economic downturns. Furthermore, ongoing global geopolitical tensions are boosting defense spending, as funds are allocated to replace equipment used in conflicts or address rising security needs. Notably, Lockheed Martin’s missiles and fire control division, expected to be the fastest-growing segment in the coming years, also offers the highest profit margins. The stock is delivering strong returns this year, surging by nearly 13.5%.
Ariel Investments made the following comment about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:
“Additionally, leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) increased following a top- and bottom-line earnings beat and subsequent raise in full year guidance. The company also announced three significant F-35 contracts underscoring the growing tailwinds for sustainment efforts and continued engineering advancements as the fleet continues to expand. LMT continues to be well positioned in the defense sector.”
As per Insider Monkey’s database of Q3 2024, 58 hedge funds owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 56 in the previous quarter. These stakes have a consolidated value of roughly $2.4 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.
2. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor manufacturing company that specializes in integrated circuits and systems. It delivered strong earnings for fiscal Q4 2024. The company reported quarterly revenue of $2.44 billion, which, despite a year-over-year decline of more than 10%, surpassed analysts’ expectations by over $37.65 million. Its operating margins stayed above 40%, demonstrating the robustness of its business model. The company also continued to prioritize strategic, long-term investments in areas like engineering, manufacturing, and improving the customer experience.
Analog Devices, Inc. (NASDAQ:ADI) serves a diverse range of industries, such as industrial, automotive, communications, and consumer applications. With a strong focus on innovation, it dedicates substantial resources to research and development to maintain its technological edge. Its strategy revolves around a customer-first approach, expanding into new markets through acquisitions, and retaining a leadership position in analog solutions. The stock is up by nearly 13% since the start of 2024.
Analog Devices, Inc. (NASDAQ:ADI) has a solid cash position, making it a reliable dividend payer. In FY24, the company generated $3.9 billion in operating cash flow and $3.1 billion in free cash flow. It returned $2.4 billion to shareholders during the year, including $1.8 billion in dividends. The company has increased its dividend payouts for 20 consecutive years. It pays a quarterly dividend of $0.92 per share, offering a dividend yield of 1.69%, as of December 4.
As of the end of Q3 2024, 63 hedge funds in Insider Monkey’s database owned stakes in Analog Devices, Inc. (NASDAQ:ADI), down from 64 in the previous quarter. These stakes are worth over $4.4 billion in total. First Eagle Investment Management owned the largest stake in the company, worth $877 million.
1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 69
NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company. In recent years, the demand for clean energy has steadily increased, and the company has consistently invested in expanding its capacity and operations to meet this demand. Analysts believe the company is well-positioned to benefit from the growing need for renewable energy, particularly from tech companies aiming to meet climate goals while expanding their energy-heavy data centers. NextEra Energy has announced plans to invest nearly $100 billion from 2024 to 2027, a move expected to more than double its renewables and storage capacity by 2027. The company anticipates adjusted earnings per share (EPS) growth of 6% to 8% through 2027, along with a nearly 10% increase in dividends per share through 2026.
On October 18, NextEra Energy, Inc. (NYSE:NEE) announced a quarterly dividend of $0.515 per share, maintaining the same payout as the previous quarter. With a dividend growth streak extending over 28 years, the company is considered one of the best dividend stocks. As of December 4, the stock offers a dividend yield of 2.72%.
Madison Investments made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:
“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”
NextEra Energy, Inc. (NYSE:NEE) was a part of 69 hedge fund portfolios at the end of Q3 2024, compared with 73 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of nearly $2.5 billion.
Overall, NextEra Energy, Inc. (NYSE:NEE) ranks first on our list of the best dividend stocks. While we acknowledge the potential for NEE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NEE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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