In this article, we will analyze the list of the best dividend stocks of all time.
Dividend stocks aren’t a quick fix for investing; they offer lasting rewards over time. Unfortunately, many investors miss the boat on this and expect to strike it rich overnight. When that doesn’t pan out, they chase the latest stock market trends, ignoring the steady gains that dividend stocks can provide. This trend has been evident over the past year, with AI stocks taking the spotlight and leaving income stocks in the dust. However, there’s a silver lining: many tech companies have begun offering dividends this year, highlighting their long-term potential.
The current yields of these tech stocks might be small, which leads many income investors to overlook their impressive growth records. This is unfortunate because dividend growth can significantly boost both long-term income and capital gains. Analysts believe that dividend growth and sustainability are more crucial than just the yield. For instance, Microsoft’s roughly 864% return over a decade far outpaces the returns from non-tech stocks like AT&T and Chevron, despite their higher yields. The tech giant currently pays $0.75 per quarter and offers a dividend yield of 0.7%. However, you need to keep in mind that its quarterly dividend was $0.28 a decade ago and its dividend yield was 2.5%. Despite the nearly tripling its quarterly dividend, the stock’s yield went down to 0.7% and that was a great thing for its dividend investors.
Dividend stocks are often compared not just with high-yield stocks but also with those that don’t pay dividends to provide investors with a comprehensive view. According to data from Hartford Funds, from 1973 to 2023, dividend-paying companies offered an average annual return of 9.17%, while stocks without dividends only returned 4.27%. The report also noted that companies with stable dividends had an average return of 6.74%, which lagged behind the performance of companies that increased their dividends.
While regularly increasing dividends is challenging, maintaining consistent payouts year after year is also no easy feat for companies. Analysts warn against yield traps—stocks with high yields but unstable dividend policies. Brian Bollinger, president of Simply Safe Dividends, shared his views on dividend investing in a CNBC interview. He recommended focusing on top-quality companies, which often provide dividend yields of around 3% to 4%. These firms usually show steady growth in their dividend payments, boosting the annual income stream and helping to counteract inflation. He also pointed out that stocks with lower yields tend to be safer investments with more reliable payout structures.
In this article, we will take a look at some of the best dividend stocks of all time that have consistent records of paying dividends to shareholders.
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Our Methodology:
For this article, we scanned the list of companies that have paid dividends to shareholders for at least 75 years. From that list, we picked companies with dividend yields of above 2%, as of July 23. We analyzed these companies through their balance sheets and overall financial health to determine their dividend stability. Additionally, we assessed the sentiment of hedge funds for each stock using Insider Monkey’s Q1 2024 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies. 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. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 27
Dividend Yield as of July 23: 3.62%
Hormel Foods Corporation (NYSE:HRL) is a Minnesota-based food processing company that deals in a wide range of consumer-based food and meat products. Recently, the company has been facing business headwinds as it is significantly exposed to poultry and pork because of its turkey operations and pork-based products such as lunch meats, pepperoni, and proteins. Fluctuating commodity prices for these meats have impacted its business. From 2018 to 2023, the company faced challenges including outbreaks of swine fever and bird flu, along with the operational constraints and market disruptions caused by the COVID-19 pandemic. In addition, the company made the big move by acquiring the Planters snack brand for $3.3 billion in June 2021, which also couldn’t prevent earnings from declining and has added more debt to the company’s balance sheet. Since then, the stock has fallen by over 36%.
That said, Hormel Foods Corporation (NYSE:HRL) reported stable volumes across different segments in fiscal Q2 2024, with food service volumes notably rising by 2.9% compared to the previous year. The first half of the year was strong, featuring consecutive quarters where earnings exceeded expectations and a significant boost in operating cash flows. The company also made headway on strategic initiatives and is on track to achieve its goals for enhancing business performance and driving long-term growth and shareholder returns. So far this year, the company has generated over $640 million in operating cash flow, reflecting a 55% increase from the same period last year.
Hormel Foods Corporation (NYSE:HRL) also holds a competitive advantage due to its strong dividend history. The company has been making regular dividend payments to shareholders since it went public in 1928. Moreover, it also holds a 58-year streak of consistent dividend growth, which makes it one of the best dividend stocks of all time. The company offers a quarterly dividend of $0.2825 per share and has a dividend yield of 3.62%, as of July 23.
At the end of the first quarter of 2024, 27 hedge funds tracked by Insider Monkey held stakes in Hormel Foods Corporation (NYSE:HRL), growing from 25 in the previous quarter. The consolidated value of these stakes is over $604.3 million.
9. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 29
Dividend Yield as of July 23: 3.70%
Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturing company that deals in industrial tools and household hardware. Over the past four years, global trends have shifted, and the company gained popularity among consumers during the DIY boom during the pandemic. However, it has since struggled to regain its footing. In 2023, the company’s revenue declined and it faced increased costs due to the supply chain issues that followed the economic reopening. Since touching its all-time high in May 2021, SWK has fallen by over 60% through July this year.
We are also concerned about Stanley Black & Decker, Inc. (NYSE:SWK)’s consumer weaknesses, but these can be addressed with various strategies. The company has demonstrated its capability in this area by shifting focus to different business segments. The Tools & Outdoor segment, where the company holds a dominant position, saw its margin increase to 7.8% year-over-year in the first quarter of 2024, a rise of 720 basis points from the previous year. Although the segment’s revenue for the quarter declined slightly by 1% compared to the same period last year, the company exceeded analysts’ expectations in the quarter. The company reported an EPS of $0.56 and revenue of $3.87 billion, surpassing Street consensus estimates by $0.01 and $35.7 million, respectively. Looking ahead, it expects varying demand trends across its businesses in 2024. To address this, it is focusing on reducing supply chain costs to improve margins, drive earnings growth, and generate strong cash flow. In addition, the company is investing in growth initiatives to foster innovation and develop distinctive market strategies, aiming to capitalize on promising long-term opportunities.
Stanley Black & Decker, Inc. (NYSE:SWK), one of the best dividend stocks of all time, has never missed a dividend over the past 147 years. It has also increased its payouts for 57 years running. The company pays a quarterly dividend of $0.81 per share and has a dividend yield of 3.70%, as of July 23.
As of the close of Q1 2024, 31 hedge funds in Insider Monkey’s database owned stakes in Stanley Black & Decker, Inc. (NYSE:SWK), which remained unchanged from the previous quarter. These stakes have a collective value of more than $715 million. Among these hedge funds, Millennium Management was the company’s leading stakeholder in Q1.
8. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 29
Dividend Yield as of July 23: 6.19%
UGI Corporation (NYSE:UGI) is an American natural gas distribution company that mainly specializes in delivering safe, reliable, and affordable energy to its consumers. The propane market in Europe has been volatile, leading to an oversupply of propane and decreased demand from the heating industry. The company, which runs an LPG distribution business across 16 European countries through its six popular brands, has faced challenges in the European propane market. As a result, prices have fallen nearly 20% and are lower than they were two years ago, which is expected to benefit the company in FY24. Its LPG business, AmeriGas Propane, reported a net income of $37 million in fiscal Q2 2024, down from $73 million in the prior-year period.
However, UGI Corporation (NYSE:UGI) is not halting its efforts and is utilizing all available resources to address the situation. The board has decided that the company should focus on restructuring and improving operations for AmeriGas. This plan includes prioritizing customer retention, boosting free cash flow, managing costs effectively, and practicing disciplined capital allocation. From fiscal 2024 through 2027, the company plans to pay $1.3 billion in shareholder return.
UGI Corporation (NYSE:UGI) has been rewarding its shareholders with growing dividends for the past 37 years. In addition, it has paid uninterrupted dividends to shareholders for the past 140 years, which makes it one of the best dividend stocks of all time. The company’s quarterly dividend currently comes in at $0.375 per share for an impressive dividend yield of 6.19%, as reported on July 23.
Insider Monkey’s database of Q1 2024 indicated that 29 hedge funds held stakes in UGI Corporation (NYSE:UGI), compared with 33 in the previous quarter. These stakes have an overall value of nearly $180 million. With over 4.6 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q1.
7. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 35
Dividend Yield as of July 23: 3.52%
An American energy company, Consolidated Edison, Inc. (NYSE:ED) ranks seventh on our list of the best dividend stocks of all time. The company has been a solid dividend payer since 1885, never missing a beat when it comes to returning cash to shareholders. It has increased its payouts for 50 straight years, weathering six U.S. recessions along the way. Over this period, it has raised its payouts at a compound annual growth rate of nearly 6%. This track record proves that the company has its ducks in a row and is firmly on solid ground, consistently delivering reliable dividends to its investors. The company offers a quarterly dividend of $0.83 per share and has a dividend yield of 3.52%, as of July 23.
Consolidated Edison, Inc. (NYSE:ED) is one of the best dividend stocks of all time because the company is committed to meeting its shareholder commitments by planning to distribute 55% to 65% of its adjusted earnings as dividends, down from the previous target of 60% to 70%. The company aims to keep a larger portion of its earnings to support internal growth. This strategy is expected to boost earnings per share growth, potentially leading to higher total returns by combining dividend income with stock price gains as earnings rise.
Income investors frequently prefer utility companies due to their reliable cash flows, which are supported by steady demand and government-regulated pricing. Consolidated Edison, Inc. (NYSE:ED)’s first-quarter earnings highlight the strong rate base growth it expects for its utilities up until 2028. This growth is fueled by investments aimed at safeguarding equipment from climate change and developing an electric grid that can deliver 100% clean energy.
The number of hedge funds tracked by Insider Monkey owning stakes in Consolidated Edison, Inc. (NYSE:ED) jumped to 35 in Q1 2024, from 28 in the preceding quarter. These stakes are collectively valued at roughly $445 million. Among these hedge funds, D E Shaw was the company’s largest stakeholder in Q1.
6. PPG Industries, Inc. (NYSE:PPG)
Number of Hedge Fund Holders: 35
Dividend Yield as of July 23: 2.15%
PPG Industries, Inc. (NYSE:PPG) is an American paint and coating manufacturing company that also deals in other specialty materials. The company reported mixed earnings in the second quarter of 2024, generating $4.8 billion in revenues, almost the same as in the same period last year. The company reported growth in margin segments by 110 basis points compared to the previous year, marking the seventh quarter in a row of margin growth. In addition, the company reached record highs in both reported EPS and adjusted EPS, with adjusted EPS increasing by 11% YoY, which was its sixth consecutive quarter of growth. While overall organic sales remained flat, several of the company’s businesses saw growth, including aerospace coatings, packaging coatings, architectural coatings in the Americas and Asia Pacific, traffic solutions, and specialty coatings and materials.
PPG Industries, Inc. (NYSE:PPG) has gained significantly from its European presence. In the early 1900s, it was among the first U.S. firms to enter the European market, acquiring a glass plant in Belgium. During the 1920s, the company saw steady growth thanks to its glass and paint divisions, which benefited from the booming automotive industry and the rise of skyscrapers. It anticipates that demand in Europe will stabilize in the third quarter of 2024 and FY24, while it expects continued growth in China and Mexico.
On July 18, PPG Industries, Inc. (NYSE:PPG) declared a 4.6% hike in its quarterly dividend to $0.68 per share. This was the company’s 53rd consecutive year of dividend growth, which makes PPG one of the best dividend stocks of all time. In addition, the company has paid dividends regularly in the past 125 years. The stock has a dividend yield of 2.15%, as of July 23.
As per Insider Monkey’s database of Q1 2024, 35 hedge funds owned stakes in PPG Industries, Inc. (NYSE:PPG), compared with 39 in the previous quarter. These stakes have a collective value of nearly $758 million. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q1.
5. Genuine Parts Company (NYSE:GPC)
Number of Hedge Fund Holders: 36
Dividend Yield as of July 23: 2.93%
Genuine Parts Company (NYSE:GPC) is a Georgia-based industrial supplies company that specializes in automotive and industrial replacement parts. a global leader in distributing automotive and industrial parts. Generally, the company’s two business segments—automotive and industrial—work together like a perfect balance, with one segment compensating for the other’s performance during cyclical fluctuations. However, this hasn’t been the case in its most recent quarter. In its recently-announced Q2 2024 earnings, the results indicate weaker-than-expected market conditions, which have dampened demand, especially in the Industrial and U.S. and European Automotive segments. The company reported global Automotive sales of $3.7 billion, marking a 2.0% increase from the same period in 2023. This growth included a 3.1% boost from acquisitions, which was partially offset by a 0.6% decline in comparable sales and a 0.5% negative impact from foreign currency and other factors. Segment profit was $314 million, down 4.7%, with a profit margin of 8.4%, which is 60 basis points lower than the previous year.
Despite this, Genuine Parts Company (NYSE:GPC) is well-positioned to benefit from the steady demand for replacement parts, which is fueled by the increasing cost of new cars. With fewer people in the U.S. able to afford new vehicles due to higher interest rates and supply chain issues driving up prices, the demand for replacement parts remains strong.
In addition, Genuine Parts Company (NYSE:GPC) is also strong from a dividend point of view because of its cash generation. In the first six months of 2024, the company reported an operating cash flow of $612 million and its free cash flow amounted to $353 million. Moreover, it returned $272 million to shareholders through dividends. The company has paid regular dividends to shareholders over the past 76 years and maintains a 68-year track record of consistent dividend growth. The company offers a quarterly dividend of $1.00 per share for a dividend yield of 2.93%, as of July 23.
In addition to a strong dividend history, Genuine Parts Company (NYSE:GPC) has an attractive valuation, currently trading at a forward P/E ratio of 14.01. The stock appears relatively inexpensive compared to competitors such as Autozone Inc (NYSE:AZO) and O’Reilly Automotive Inc (NASDAQ:ORLY), which have forward P/E ratios of 17.86 and 25.32, respectively, and do not pay dividends to shareholders. This makes GPC an attractive option for investors seeking exposure to a growing market while also receiving consistent dividend income.
At the end of March 2024, 36 hedge funds in Insider Monkey’s database held stakes in Genuine Parts Company (NYSE:GPC), unchanged from the previous quarter. Their positions have a consolidated value of nearly $700 million.
4. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 39
Dividend Yield as of July 23: 3.75%
General Mills, Inc. (NYSE:GIS) is an American multinational food processing company that also markets processed consumer food through retail stores. The Consumer Price Index (CPI) report for June showed a 3.3% YoY increase in the core rate, slightly below the 3.5% increase economists had predicted and down from the 3.4% rise in May. The food category, which is closely monitored, saw a 2.2% increase YoY in June. Within this category, food away from home rose by 4.1%, while food at home increased by just 1.1%. Although the inflation rate for food at home has been below the Federal Reserve’s target of 2% for eight consecutive months, food prices overall remain high compared to two or three years ago. With inflation on the rise, food companies have had to increase their prices.
General Mills, Inc. (NYSE:GIS) is handling the situation more effectively than its peers. In its FY24 earnings, the company announced that it had achieved better volume performance in the second half of the year and generated top-tier cost savings through Holistic Margin Management (HMM). This enabled it to safeguard its brand investments while meeting its profit and cash flow targets. Looking ahead to fiscal 2025, the company’s primary focus is to boost organic net sales growth, particularly in volume, by delivering exceptional experiences across its portfolio of leading brands. The gross margin also rose by 140 basis points to 35.8% of net sales, thanks to HMM cost savings, favorable mark-to-market effects, and reduced other supply chain expenses.
General Mills, Inc. (NYSE:GIS) also reported a strong cash position with an operating cash flow of $3.3 billion in FY24, up from $2.8 billion in the prior-year period. During the year, the company paid $1.4 billion in dividends, showing its commitment to shareholder return. The company has paid dividends without interruption for 125 years, which makes it one of the best dividend stocks of all time. On June 26, General Mills, Inc. (NYSE:GIS) declared a 1.7% hike in its quarterly dividend to $0.60 per share. This was the company’s third consecutive year of dividend growth after the pandemic. The stock offers a dividend yield of 3.75%, as of July 23.
According to Insider Monkey’s database of Q1 2024, 39 hedge funds held stakes in General Mills, Inc. (NYSE:GIS), compared with 40 in the previous quarter. These stakes have a total value of nearly $852 million. With over 2.6 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q1.
3. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 39
Dividend Yield as of July 23: 2.16%
Johnson Controls International plc (NYSE:JCI) is a multinational conglomerate company that specializes in building technologies and solutions and also offers energy storage solutions. The company has faced pressures recently as activist investors Elliott Investment Management and Soroban Capital Partners each amassed stakes worth over $1 billion in the company. In response, it decided in June to sell its air distribution technologies business to private equity firm Truelink Capital. In addition, the company announced plans to establish a new unit to capitalize on the growing demand for data center solutions. Since the start of 2024, the stock has gained over 21%.
In one of the recent developments, Robert Bosch GmbH intends to purchase Johnson Controls International plc (NYSE:JCI)’s heating and ventilation assets for $8 billion, marking its largest acquisition to date as it shifts focus from automotive supplies. As part of the transaction, Bosch will acquire the company’s air-conditioning joint venture with Hitachi, including Hitachi’s 40% stake. All parties have signed binding agreements, and the deal is expected to be finalized within 12 months, pending regulatory approval. Through this transaction, Johnson Controls International plc (NYSE:JCI) will significantly streamline its portfolio, sharpening its strategic focus to align with its goal of becoming a dedicated provider of comprehensive solutions for commercial buildings.
Analysts have expressed concern about the stock’s performance over the past 12 months. Nevertheless, they remain positive about its future prospects and valuation, noting that it is currently trading at an attractive forward P/E ratio of 16.8. Diamond Hill Capital also highlighted Johnson Controls International plc (NYSE:JCI)’s valuation in its Q1 2024 investor letter. Here is what the firm has to say:
“Though valuations have increased, we continue identifying high-quality companies we believe the market is overlooking. We accordingly initiated four new positions in Q1: Generac Holdings, Diamondback Energy (FANG), Johnson Controls International plc (NYSE:JCI) and Humana. We initiated a position in Johnson Controls (JCI), a leading provider of HVAC, security and fire detection/suppression and building management systems as we believe the company is well-positioned to benefit from the secular trend toward smart buildings and a shift to high-margin services. While JCI has not executed particularly well recently, we believe the market has overreacted to these issues while also underappreciating the potential magnitude of the aforementioned secular tailwinds. We accordingly capitalized on the opportunity to establish a position at a steep discount to JCI’s HVAC peers and our estimate of intrinsic value.”
On June 12, Johnson Controls International plc (NYSE:JCI) declared a quarterly dividend of $0.37 per share, which was consistent with its previous dividend. The company has never missed a single dividend since 1887, which makes JCI one of the best dividend stocks of all time. The stock’s dividend yield on July 23 came in at 2.16%.
As of the end of the March quarter of 2024, 39 hedge funds owned stakes in Johnson Controls International plc (NYSE:JCI), as per Insider Monkey’s database. These stakes have a consolidated value of over $2.1 billion.
2. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 50
Dividend Yield as of July 23: 2.05%
An American multinational consumer products company, Colgate-Palmolive Company (NYSE:CL) ranks second on our list of the best dividend stocks of all time. The company has always been testing new business approaches, which have contributed to its status as a global leader in consumer products. Originally starting as a small soap and candle business, it has now diversified into a broad range of products. For Colgate-Palmolive Company (NYSE:CL), recent strategic shifts, such as focusing on e-commerce, are showing positive results. Although this progress is partially reflected in the company’s valuation, these strategic changes are expected to lead to consistently higher organic sales growth for CL compared to its competitors over the long term.
Colgate-Palmolive Company (NYSE:CL) qualifies as one of the best dividend stocks of all time because of its strong cash generation. In its recently announced second-quarter earnings, the company reported an operating cash flow of over $1.6 billion, up from $1.45 billion in the prior-year period. Its free cash flow before dividends came in at $1.4 billion, growing from $1.11 billion in the same period last year. During the quarter, it returned $867 million to shareholders through dividends. The company’s quarterly earnings are well-received by Street analysts and investors. In the second quarter, the stock gained nearly 9% and its year-to-date returns are even more impressive at roughly 20%.
ClearBridge Investments highlighted reasons for Colgate-Palmolive Company (NYSE:CL)’s outperformance in its Q2 2024 investor letter. Here is what the firm has to say:
“Colgate-Palmolive Company (NYSE:CL), added to the portfolio in 2023, started outperforming materially toward the tail end of last year as growth, margin and market share momentum began to turn favorably, and that momentum has continued year to date as the stock has nicely outperformed the large cap staples group. The fundamental upside has been driven by a combination of healthy organic growth (with positive volumes), good gross margin progression, and strong re-investment spending supporting market share gains and future growth.”
On June 13, Colgate-Palmolive Company (NYSE:CL) announced a quarterly dividend of $0.50 per share, which was in line with its previous dividend. The company holds a 62-year streak of consistent dividend growth and has paid dividends without interruption for 129 years in a row. The stock’s dividend yield on July 23 came in at 2.05%.
Of the 920 hedge funds tracked by Insider Monkey at the end of Q1 2024, 50 funds had invested in Colgate-Palmolive Company (NYSE:CL), down from 54 in the previous quarter. The stakes held by these hedge funds have a collective value of over $2.1 billion.
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 69
Dividend Yield as of July 23: 2.40%
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company that specializes in consumer goods. The company is a strong dividend payer, with a dividend growth streak spanning over 68 years. In addition, it has regularly distributed dividends to shareholders for 134 years straight. The company has a strong cash position, indicating its ability to maintain its dividend policy while meeting its targets. In the latest quarter, it generated over $4 billion in operating cash flow, with adjusted free cash flow reaching $3.3 billion and a free cash flow productivity of 87%. The company expects adjusted free cash flow productivity to reach 90% and plans to distribute over $9 billion in dividends in 2024. As of July 23, the company has a dividend yield of 2.40%.
In July of this year, The Procter & Gamble Company (NYSE:PG) hit a new all-time high of $169 per share, exceeding its previous peak of about $168, which it achieved in June. This milestone is largely attributed to the company’s strong execution. The company has consistently performed well, especially during inflationary periods, where it effectively implemented significant price hikes. For example, in fiscal 2023, the company achieved organic sales growth in every quarter.
According to Insider Monkey’s database of Q1 2024, 69 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG), down slightly from 71 in the previous quarter. These stakes have a total value of over $7.2 billion.
While we acknowledge the potential of PG 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 timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than PG but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
