In this article, we will take a look at dividend zombies to invest in.
The broader market has posted consecutive annual gains of 25%, largely fueled by growth stocks and companies capitalizing on the rising demand for artificial intelligence. Despite this, dividend stocks remain a key part of a strong investment strategy. Over time, dividends play an increasingly significant role in returns, and historical data shows that from 1987 through the end of 2023, reinvested dividends accounted for roughly 55% of the market’s total gains.
While recent market gains have largely been driven by a few non-dividend-paying companies, the landscape is evolving. Several major tech firms introduced dividend policies last year, emphasizing their commitment to returning capital to shareholders. They view dividends as a valuable complement to share buybacks. Although initial dividend yields from tech stocks remain modest, the total payout is substantial, with just three companies expected to distribute an estimated $17 billion over the next year, as reported by J.P. Morgan.
This shift sends a significant signal to the market. The report highlighted that the best opportunities in dividend stocks come from “Compounders”—companies with a strong history of consistently increasing dividends. Nearly half of the strategy focuses on these firms, which are supported by steady earnings growth. Compounders not only ensure reliable income but also provide a solid foundation for generating long-term portfolio outperformance.
Dividend zombies are a lesser-known category within dividend investing. These companies have consistently paid dividends to shareholders for 100 years or more. Some have even increased their payouts over time, earning a place among the elite dividend aristocrats. Their ability to sustain such a long track record is largely due to strong cash flows and solid financial health. This strong financial position makes these stocks appealing to investors.
According to a report by Nuveen, dividend growth stocks have historically delivered a strong mix of earnings expansion, cash flow stability, and well-managed dividend policies. They have demonstrated solid performance in rising markets while also offering resilience during downturns and periods of market volatility. Over time, companies that consistently increase or initiate dividends have outperformed those that merely maintain payouts, do not pay dividends, or reduce them. In addition, they have achieved these returns with lower risk, as reflected in their lower standard deviation.
Dividend stocks are also appealing today from a valuation perspective. The market’s heavy concentration in a few stocks and the excitement around AI have led to historically low relative valuations for dividend-paying companies. This creates an opportunity for investors to tap into a long-term trend that combines income generation with growth by investing in businesses with solid fundamentals and a track record of steady dividend increases. Historically, this segment has provided downside protection, making it a strategic option for adding stability and diversification to an equity portfolio. Given this, we will take a look at some of the best dividend zombies to invest in.
Image by Steve Buissinne from Pixabay
Our Methodology
For this list, we selected companies that have paid dividends for over 100 years and also have strong dividend growth histories. Some of these companies are dividend kings, which means that they have raised their payouts for 50 years or more. The stocks are ranked in ascending order of the consecutive years of dividend payments.
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15. Abbott Laboratories (NYSE:ABT)
Consecutive Years of Dividend Payments: 100
Abbott Laboratories (NYSE:ABT) is an American medical device company that offers services and products in diagnostics, nutrition, and established pharmaceuticals. The company consistently introduces and promotes innovative products, maintaining a portfolio that includes numerous patented devices with steady sales. Its diversified approach provides an advantage by preventing overdependence on any single business segment. Since the start of 2025, the stock has surged by over 11%, outperforming the broader market, which has now entered into negative territory.
In the fourth quarter of 2024, Abbott Laboratories (NYSE:ABT) reported a revenue of $11 billion, which showed an over 7% growth from the same period last year. However, the revenue missed analysts’ estimates by more than $57 million. Overall, the company reported strong growth during the year. For FY24, it met the higher end of its original forecasts from January for both organic sales growth and adjusted earnings per share. Throughout the year, the company introduced over 15 new growth initiatives driven by its robust R&D efforts, encompassing a mix of newly approved products and expanded treatment indications.
On February 21, Abbott Laboratories (NYSE:ABT) declared a quarterly dividend of $0.59 per share, which fell in line with its previous dividend. Overall, the company holds a strong dividend history, having raised its payouts for 53 consecutive years. Moreover, it has never missed a dividend in 100 years, which makes ABT one of the dividend zombies to invest in. As of March 22, the stock has a dividend yield of 1.87%.
14. International Business Machines Corporation (NYSE:IBM)
Consecutive Years of Dividend Payments: 108
International Business Machines Corporation (NYSE:IBM), commonly known as Big Blue, is an American multinational tech company with a presence in around 175 countries. The company’s quantum computing business has gained significant momentum in recent years. Since 2017, the company has generated nearly $1 billion in cumulative revenue from its IBM Quantum offerings, reflecting the early success of its comprehensive strategy. This approach integrates advanced superconducting qubit hardware, hybrid-cloud solutions, and the open-source Qiskit software development kit. Looking ahead, it remains committed to advancing the field, with its roadmap focusing on improvements in error correction and fidelity over the coming years. Since the start of 2025, the stock has surged by nearly 11%.
In the fourth quarter of 2024, International Business Machines Corporation (NYSE:IBM) reported $17.6 billion in revenue, marking a 1% year-over-year increase. The Software segment saw strong double-digit growth, driven by robust demand for Red Hat. As businesses increasingly turn to IBM for AI-powered transformation, its generative AI division generated over $5 billion in revenue, nearly $2 billion more than the previous quarter.
International Business Machines Corporation (NYSE:IBM) also delivered solid cash performance in 2024, generating $13.4 billion in operating cash flow and $12.7 billion in free cash flow. In the fourth quarter, the company returned $1.5 billion to shareholders through dividend payments. It currently pays a quarterly dividend of $1.67 per share and has a dividend yield of 2.74%, as of March 23. IBM is one of the best dividend zombies to consider as the company has been paying regular dividends for 108 consecutive years and has raised its dividends for 29 years in a row.
13. National Fuel Gas Company (NYSE:NFG)
Consecutive Years of Dividend Payments: 121
National Fuel Gas Company (NYSE:NFG) ranks thirteenth on our list of the dividend zombies to invest in. The American diversified energy company engages in the exploration and development of natural gas and oil reserves. The company’s exploration and production division accounts for roughly half of its total earnings, while the gathering, storage, and utility segments make up the remaining portion. NFG has been steadily increasing its production and anticipates achieving low-to-mid single-digit growth in output over the next three years. The stock is delivering solid returns, surging by over 27% since the start of 2025.
In fiscal Q1 2025, National Fuel Gas Company (NYSE:NFG) reported revenue of $549.4 million, which saw a 4.59% growth from the same period last year. Net income for the Pipeline & Storage segment rose by $8.4 million (35%) year-over-year, largely due to the settlement of the Supply Corporation rate case, which resulted in higher rates taking effect on February 1, 2024. The Utility segment saw a $5.9 million (22%) increase in net income compared to the previous year, driven by a three-year rate settlement in the company’s New York jurisdiction.
As a result of higher projected natural gas prices and improving conditions across all segments, National Fuel Gas Company (NYSE:NFG) has raised its fiscal 2025 adjusted earnings per share (EPS) guidance to a range of $6.50 to $7.00. In addition, the company’s cash position came in strong as it generated over $220 million in operating cash flow during the quarter. It has been growing its payouts for 54 consecutive years and has paid uninterrupted dividends for 121 years. The company’s quarterly dividend comes in at $0.515 per share and has a dividend yield of 2.64%, as recorded on March 23.
