In this article, we will take a look at some of the best Dividend Monarchs to invest in.
Dividend-focused investors are generally well-acquainted with terms like Dividend Aristocrats and Dividend Kings, but many may not be aware of a lesser-known group called Dividend Monarchs. While they fall under the broader category of dividend growth stocks, they carry a distinct title. The Dividend Monarchs Index highlights US companies that have managed to raise their dividends consistently for at least 50 consecutive years. These firms have weathered decades of market ups and downs, showcasing both resilience and steady performance in terms of dividend growth and stock returns. As an evolution of the well-known S&P Dividend Aristocrats Index Series, the S&P Dividend Monarchs Index sets an even higher standard, recognizing a more exclusive tier of long-term dividend payers.
S&P Dow Jones Indices has been a pioneer in dividend growth strategies since the 1980s, initially tracking US companies with at least 10 years of dividend increases. As the number of such companies grew, the threshold was raised to 25 years, forming the basis for the Dividend Aristocrats Index, launched in 2005. This index became a widely recognized benchmark, eventually expanding to include mid- and small-cap stocks as well as global markets. By April 2023, over $40 billion in ETF assets tracked these indices. With a rising number of companies now surpassing 50 consecutive years of dividend growth across different market caps, S&P introduced the Dividend Monarchs Index in 2023 to reflect this new elite group.
The key distinction between Dividend Kings and Dividend Monarchs lies in the inclusion criteria. While both require at least 50 consecutive years of dividend increases, Dividend Monarchs must also meet specific standards set by S&P. To qualify for the Dividend Monarchs Index, a company must be part of the Composite 1500, have a float-adjusted market capitalization of at least $2 billion, maintain a three-month average daily trading value of $5 million or more, and consistently grow its dividend over five decades. This added layer of eligibility makes Monarchs a more selective, index-based group.
Companies that meet the tough 50-year dividend growth requirement tend to show strong profitability and financial stability. According to an S&P Dow Jones Indices report dated April 30, 2023, the Dividend Monarchs Index outperformed both the broader market and the S&P Composite in terms of return on equity (ROE) and showed more consistent earnings. The report also noted that, based on back-tested data since January 31, 2018, the Dividend Monarchs Index displayed more defensive traits—offering lower volatility and smaller drawdowns than the S&P 500 during market declines.
Although the Dividend Monarchs Index is a relatively new concept with only five years of back-tested performance, it has grown significantly during that time, expanding from 11 to 35 constituents. Despite the index’s short history, the companies included have a track record of at least 50 consecutive years of dividend growth, dating as far back as 1972. According to data presented by S&P Dow Jones Indices, the performance of these companies—measured through both price returns over the past 50 years and total returns since December 1989—has generally outpaced that of the broader market. This suggests that many of the index’s constituents have delivered stronger long-term results. Given this, we will take a look at some of the best Dividend Monarchs to invest in.
Our Methodology
For this list, we scanned the holdings of the S&P Dividend Monarchs Index, which tracks the performance of companies with 50 consecutive years of dividend growth. From that list, we picked 10 stocks that were most popular among hedge funds, as per Insider Monkey’s Q4 2024 database. The stocks are ranked in ascending order of the hedge funds having stakes in them.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Illinois Tool Works Inc. (NYSE:ITW)
Number of Hedge Fund Holders: 49
Illinois Tool Works Inc. (NYSE:ITW) is an American diversified industrial company that operates in a wide range of segments. The company is deeply rooted in the industrial economy and stands out for its broad diversification, which serves as a key advantage—particularly as the market moves away from traditional conglomerate structures. Each of its segments operates with strong profit margins and represents only a modest portion of the overall business. This structure allows the company to remain resilient, as it can withstand slowdowns in individual segments without significantly impacting the broader business.
In the fourth quarter of 2024, Illinois Tool Works Inc. (NYSE:ITW) reported $3.9 billion in revenue, marking a 1.28% year-over-year decline and falling short of analyst expectations by more than $50 million. Despite the revenue miss, the company’s GAAP earnings per share rose 7% to $2.54. The operating margin improved to 26.2%, with enterprise initiatives contributing significantly—adding 120 of the 140 basis-point increase.
Illinois Tool Works Inc. (NYSE:ITW) also maintained a strong financial position, generating $1.1 billion in operating cash flow and achieving a record free cash flow of $1 billion, up 10% with a 133% conversion rate. Looking ahead to FY25, the company expects free cash flow to surpass net income and plans to repurchase about $1.5 billion in shares. It also anticipates an effective tax rate between 24% and 24.5%.
Illinois Tool Works Inc. (NYSE:ITW) is one of the best Dividend Monarchs as the company has been growing its dividends for 52 consecutive years. The company currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 2.58%, as of April 15.
9. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 56
Target Corporation (NYSE:TGT) is an American retail company that operates a chain of hypermarkets and discount department stores. The company has carved out a unique position among large retailers by offering low prices alongside a more upscale shopping experience, thanks in part to its strong lineup of private-label and exclusive products that have helped build a loyal following. This strategy has long contributed to the company’s success. However, Target is now navigating a more difficult economic backdrop, where shifting consumer habits are weighing on sales. The stock has also declined by over 32% since the start of 2025.
As more shoppers prioritize affordability and pull back on spending for higher-priced, non-essential items, Target Corporation (NYSE:TGT) is feeling the impact on its revenue. This shift in consumer behavior played a role in the company’s lackluster financial results for 2024. For the fiscal year ending February 1, the company reported a 0.8% decline in net sales compared to the previous year, while adjusted earnings per share slipped by 1%, landing at $8.86.
However, Target Corporation (NYSE:TGT)’s cash position makes it a reliable dividend payer. In FY24, the company’s operating cash flow came in at $7.3 billion. Moreover, it returned $513 million to shareholders through dividends in Q4 2024, up from $508 million during the same period last year. The company’s quarterly dividend comes in at $1.12 per share for a dividend yield of 4.85%, as of April 15. It is one of the best Dividend Monarchs, with 53 consecutive years of dividend growth under its belt.
8. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 56
Becton, Dickinson and Company (NYSE:BDX) is an American medical device company, headquartered in New Jersey. In addition to medical equipment, the company also specializes in instrument systems and reagents. In its fiscal Q1 2025 earnings report, the company mentioned that it is continuing its transformation under the BD 2025 strategy, with the planned separation of Biosciences and Diagnostic Solutions building on the progress already made. According to the company, the move aims to create substantial value for both the newly streamlined BD and the separated Biosciences and Diagnostic Solutions businesses, allowing each to concentrate more fully on driving growth, advancing innovation, and achieving operational excellence within their specific markets.
Becton, Dickinson and Company (NYSE:BDX) reported revenue of $5.1 billion in Q1 2025, up nearly 10% from the same period last year. The revenue also beat analysts’ estimates by $59.6 million. The US market represented over $3 billion of the total revenue, which also showed a 12% growth on a YoY basis. BD Medical remained the winner among the other segments, generating $2.6 billion in revenues, up over 17% from the prior-year period.
Becton, Dickinson and Company (NYSE:BDX) ended the quarter with $711 million available in cash and cash equivalents. It also generated $693 million in operating cash flow. This strong cash position has enabled the company to maintain its dividend policy over all these years. BDX has been rewarding shareholders with growing dividends for the past 53 years, which makes it one of the best Dividend Monarchs on our list. Currently, it offers a quarterly dividend of $1.04 per share and has a dividend yield of 2.05%, as of April 15.
7. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 66
Abbott Laboratories (NYSE:ABT) ranks seventh on our list of the best Dividend Monarchs. The American medical device company provides services and products in diagnostics, nutrition, and established pharmaceuticals. The company recently announced that its Volt PFA System, designed to treat atrial fibrillation—a common heart condition—has received CE mark approval in Europe. The system uses pulsed field ablation, a technique that delivers high-energy electrical pulses to target problematic tissues in the heart. Earning the CE mark indicates that the product meets strict health, safety, and performance standards, a necessary certification for products sold across the European Economic Area. Since the start of 2025, the stock has surged by over 11%.
In the fourth quarter of 2024, Abbott Laboratories (NYSE:ABT) posted $11 billion in revenue, marking a year-over-year growth of over 7%. While this figure came in just below Wall Street’s forecasts—missing by more than $57 million—the company still showed steady progress over the course of the year. Through 2024, the company reached the high end of its initial forecasts for organic sales growth and adjusted earnings per share. This performance was supported by the company’s continued investment in research and development, which resulted in the introduction of over 15 new growth initiatives during the year, including newly approved products and broader uses for existing therapies.
Abbott Laboratories (NYSE:ABT) currently pays a quarterly dividend of $0.59 per share and has a dividend yield of 1.87%, as of April 15. The company has raised its dividends for 53 years in a row.
6. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food, snack, and beverage company. It benefits from a well-diversified business model, supported by its strong presence in the snack food sector, which opens up multiple avenues for growth. While Coca-Cola may hold a slight edge in terms of balance sheet strength, much of PepsiCo’s debt is tied to recent acquisitions. With inflation showing signs of easing and recession risks being reassessed by financial institutions, the likelihood of interest rate cuts increases—an environment that could work in PepsiCo’s favor, given its debt load.
In fiscal 2024, PepsiCo, Inc. (NASDAQ:PEP) reported solid financials, with revenue reaching $91.8 billion, up slightly from $91.4 billion the year before. Operating profit rose to $12.8 billion, compared to $11.9 billion in 2023, and net income totaled $9.6 billion. Looking ahead to fiscal 2025, the company anticipates low single-digit organic revenue growth and mid-single-digit growth in core EPS on a constant currency basis.
During FY24, PepsiCo, Inc. (NASDAQ:PEP) generated $12.5 billion in operating cash flow and plans to return about $7.6 billion to shareholders through dividends. The company currently offers a quarterly dividend of $1.355 per share and has a dividend yield of 3.78%, as of April 15. In February, the company marked its 53rd consecutive annual dividend increase, which makes it one of the best Dividend Monarchs on our list.
5. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 70
Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement company. It has recently sharpened its focus on key strategic areas to strengthen its competitive edge. The company has been working to improve its digital presence, optimize supply chain efficiency, and deepen customer engagement through enhanced technology. By emphasizing an omnichannel approach—seamlessly integrating its online and physical store operations—Lowe’s aims to maintain steady profitability and deliver a smooth shopping experience across platforms.
In the fourth quarter of 2024, Lowe’s Companies, Inc. (NYSE:LOW) posted a revenue of $18.55 billion. Although this marked a slight year-over-year dip of 0.3%, earnings surpassed expectations by $260 million. Comparable sales edged up by 0.2%, buoyed by solid gains in the Pro segment, strong digital activity, a successful holiday season, and post-hurricane recovery efforts.
By year-end, Lowe’s Companies, Inc. (NYSE:LOW) held $1.8 billion in cash and equivalents—almost doubling the previous year’s figure of $921 million. Operating cash flow rose to $9.7 billion from $8.1 billion in 2023, and the company returned $6.5 billion to shareholders via dividends and share buybacks. Due to this cash position, Lowe’s has one of the longest dividend growth track records, spanning 59 years. Its quarterly dividend comes in at $1.15 per share and has a dividend yield of 2.09%, as of April 15.
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
An American multinational consumer goods company, The Procter & Gamble Company (NYSE:PG) ranks fourth on our list of the best Dividend Monarchs. The company continues to stand out as a reliable consumer goods company, offering essential products that remain in demand regardless of the economic climate. As the parent company behind widely recognized brands like Pampers, Tide, Downy, Charmin, Gillette, Old Spice, and Febreze, P&G benefits from a resilient business model built on household staples.
In the second quarter of fiscal 2025, The Procter & Gamble Company (NYSE:PG) reported $21.9 billion in revenue, up 2% from the previous year and beating analyst forecasts by over $291 million. Organic sales, which strip out currency effects and impacts from acquisitions or divestitures, rose by 3%, fueled by a 2% increase in product volume. Pricing remained unchanged, highlighting the importance of volume growth as a long-term revenue driver. The baby, feminine, and family care segment delivered especially strong results, with organic sales and volume both climbing 4%.
The Procter & Gamble Company (NYSE:PG) declared a 5% hike in its quarterly dividend to $1.0568 per share. This marked the company’s 69th consecutive year of dividend growth. Backed by solid financials, it generated $4.8 billion in operating cash flow during the quarter, achieving an 84% free cash flow productivity rate. The company returned $2.4 billion to shareholders via dividends, reinforcing its position as one of the top picks for long-term investments. As of April 15, the stock has a dividend yield of 2.51%.
3. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) is a multinational beverage company that offers a wide range of products. The company has traditionally held up well during economic downturns. A large share of its yearly revenue comes from selling concentrate syrup for its signature beverages—a business model that requires relatively little capital investment yet delivers strong profitability. Over the past five years, the company has consistently maintained profit margins above 20%, underscoring the strength and efficiency of its operations.
In the fourth quarter of 2024, The Coca-Cola Company (NYSE:KO) reported revenue of $11.5 billion, marking a 6.5% increase compared to the same period last year. Organic revenue rose by 14%, driven by a 9% boost in pricing and mix, along with a 5% uptick in concentrate sales. The company gained ground across its beverage categories, with Coca-Cola Zero Sugar showing notable growth—unit volume jumped 13% during the quarter. Its continued success was also supported by creative marketing efforts, which have added roughly $40 billion in retail sales to the flagship brand over the past three years.
The Coca-Cola Company (NYSE:KO) maintained solid cash generation, producing $2.9 billion in operating cash flow and $1.6 billion in free cash flow. The quarter also saw an adjusted operating margin of 30.7%, highlighting the company’s strong profitability. It announced a 5.2% hike in its quarterly dividend in February to $0.51 per share, which was the company’s 63rd consecutive year of dividend growth. The stock supports a dividend yield of 2.84%, as of April 15.
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 85
AbbVie Inc. (NYSE:ABBV) is an American multinational pharmaceutical company. Despite concerns over the loss of Humira’s patent protection, AbbVie has managed to thrive, with both its revenue and share price reaching near-record highs. The company successfully navigated the challenge by diversifying its portfolio and sustaining strong performance beyond its former top-selling drug. In addition, it focused on expanding its portfolio by creating new products and pursuing acquisitions aimed at boosting growth. Thanks to these efforts, the company now benefits from two autoimmune treatments, Rinvoq and Skyrizi, which together generate more revenue than Humira did at its highest point.
In fiscal Q4 2025, AbbVie Inc. (NYSE:ABBV) reported revenue of $15.1 billion, marking a 5.6% increase from the same period the previous year and beating analyst expectations, which were set at $14.87 billion. While the company recorded a small GAAP net loss of $0.02 per share, its adjusted diluted EPS stood at $2.16, slightly topping the anticipated $2.13. For the full year 2024, combined sales of Skyrizi and Rinvoq surged 51% to reach $1.77 billion, fueled by growing global demand and expanded market presence.
AbbVie Inc. (NYSE:ABBV), one of the best Dividend Monarchs, has been growing its dividends for the past 52 years. The company offers a quarterly dividend of $1.64 per share and has a dividend yield of 3.71%, as of April 15.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) is an American healthcare company that specializes in manufacturing, developing, and selling a wide range of healthcare products and also offers related services. In the fourth quarter of 2024, the company posted a revenue of $22.5 billion, up 5.2% from the previous year and beating estimates by $84.4 million. Operational growth came in at 6.7%, with the MedTech segment seeing a 6.2% increase in global operational sales, helped by both acquisitions and divestitures.
Although Johnson & Johnson (NYSE:JNJ)’s pharmaceutical segment hasn’t been impacted by current tariffs, its recent effort to resolve talc-related lawsuits through bankruptcy was turned down by a judge. As a result, the company now intends to address the lawsuits through the traditional tort system after courts found the cases don’t cause significant financial strain.
Despite the unresolved legal issues, Johnson & Johnson (NYSE:JNJ) continues to show strong financial health and steady performance. Both its pharmaceutical and MedTech businesses remain solid, backed by reliable earnings and a productive pipeline that consistently brings new product approvals. With more than a hundred years of innovation under its belt, Johnson & Johnson appears well-positioned to keep moving forward.
On April 15, Johnson & Johnson (NYSE:JNJ) declared a 4.8% increase in its quarterly dividend to $1.30 per share. Through this increase, the company stretched its dividend growth streak to 63 years, which makes JNJ a Dividend Monarch to monitor. The stock’s dividend yield on April 15 came in at 3.23%.
Overall, Johnson & Johnson (NYSE:JNJ) ranks first on our list of the best Dividend Monarchs to invest in. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than JNJ but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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