16 Best Dividend Stocks of All Time

Published on April 15, 2024 at 7:43 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 16 best dividend stocks of all time. You can skip our detailed analysis of dividend stocks and their historical performance, and go directly to read 5 Best Dividend Stocks of All Time.

According to a report by Hartford Funds, approximately 85% of the total return generated by the S&P 500 can be credited to reinvested dividends and the compounding effect they have over time. Being a dividend investor requires a lot of patience since these equities typically deliver results over the long term. Moreover, these stocks have outperformed their non-dividend peers over the course of time. In our article on the subject, we cited data from Hartford Funds to analyze the long-term performance of dividend stocks. The report mentioned that dividend-paying companies delivered an annual average return of 9.17% from 1973 to 2023, compared with a 4.27% return of non-dividend stocks. The report further mentioned that companies that maintained their payouts returned 6.74% on average, underperforming dividend growers.

Various factors come into play when investors seek to attain such returns. One of the main things in this regard is to steer clear of yield traps and instead prioritize dividend growth and reliability. Brian Bollinger, president of Simply Safe Dividends, spoke about dividend investments in one of his interviews with CNBC. He advocated for an approach that targets excellent businesses, which may offer dividend yields closer to 3% to 4%. According to him, these companies typically experience consistent growth in their dividend payments, thereby increasing the annual income stream. This strategy also assists in eliminating the impacts of inflation. He further noted that companies with lower yields generally represent safer investments with secure payout structures.

In addition to their strong returns in the past, companies that grow and maintain their dividend payments offer a powerful strategy for wealth accumulation through reinvesting dividends in the long run. When reinvesting dividends, investors are allowed to buy more shares of the company, which eventually generates more dividends. T. Rowe Price reported that reinvested dividends accounted for 42.5% of the S&P 500’s total return over the three decades that ended in 2022. The report also mentioned that the returns become more compelling when investors add dividend growers to their portfolios as a growing dividend directly impacts the potential for higher returns over the long term.

As mentioned above, investors often fall for hefty yields in order to increase their income generation. However, high dividend yields are not always a bad idea. They can offer a reliable dividend strategy to dividend investors when combined with strong dividend histories. The Dow Jones Dividend 100 Index seeks the performance of 100 high-yielding dividend stocks that are also known for their consistent dividend payments. According to a report by S&P Dow Jones Indices, the index delivered a total annualized return of 11.7% from June 2001 to June 2023, surpassing its benchmark, the Dow Jones US Broad Stock Market Index, which returned 10.2% during the same period. These returns also include theoretical reinvestment of dividends.

Some of the best dividend stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) with impressive track records of dividend growth and strong balance sheets. In this article, we will further take a look at some of the best dividend stocks of all time.

Image by Steve Buissinne from Pixabay

Our Methodology:

To compile this article, we first scanned Insider Monkey’s database of 933 hedge funds and picked companies that have been paying dividends to shareholders for 75 consecutive years or more. We further analyzed these companies through their balance sheets and overall financial health to determine their dividend stability. These stocks are ranked based on the number of hedge funds holding positions in them, from the lowest to the highest number. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

16. The York Water Company (NASDAQ:YORW)

Number of Hedge Fund Holders: 8

Consecutive Years of Dividend Payments: 208

The York Water Company (NASDAQ:YORW) is an American public utility company that mainly provides water utility services to its consumers. On February 28, the company declared a quarterly dividend of $0.21 per share, which was in line with its previous dividend. This was the company’s 613th consecutive quarterly dividend. It has been paying regular dividends to shareholders for the past 208 years, which makes YORW one of the best dividend stocks on our list. The stock has a dividend yield of 2.43%, as of April 6.

At the end of Q4 2023, 8 hedge funds in Insider Monkey’s database reported having stakes in The York Water Company (NASDAQ:YORW), compared with 11 in the previous quarter. The overall value of these stakes is more than $41.6 million. Among these hedge funds, Zimmer Partners was the company’s leading stakeholder in Q4.

15. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 25

Consecutive Years of Dividend Payments: 96

Hormel Foods Corporation (NYSE:HRL) is a multinational food company that engages in the production and marketing of a wide range of food and meat products. It is one of the best dividend stocks on our list as the company has never missed a single dividend since its IPO in 1928 and also maintains a 58-year streak of consistent dividend growth. It currently offers a quarterly dividend of $0.2825 per share and has a dividend yield of 3.26%, as of April 6.

As of the end of Q4 2023, 25 hedge funds tracked by Insider Monkey held stakes in Hormel Foods Corporation (NYSE:HRL), up from 18 in the preceding quarter. These stakes are collectively valued at over $468 million.

14. Consolidated Edison, Inc. (NYSE:ED)

Number of Hedge Fund Holders: 28

Consecutive Years of Dividend Payments: 139

Consolidated Edison, Inc. (NYSE:ED) is next on our list of the best dividend stocks of all time. The New York-based diversified energy company holds one of the longest dividend payments records in the US market, spanning over 139 years. Moreover, it is a Dividend King with 50 consecutive years of dividend growth under its belt. The company currently offers a quarterly dividend of $0.83 per share for a dividend yield of 3.70%, as recorded on April 6.

According to Insider Monkey’s database of Q4 2023, 28 hedge funds held stakes in Consolidated Edison, Inc. (NYSE:ED), up from 27 in the previous quarter. The total value of these stakes is nearly $470 million. Citadel Investment Group owned the largest stake in the company in Q4.

13. Church & Dwight Co., Inc. (NYSE:CHD)

Number of Hedge Fund Holders: 30

Consecutive Years of Dividend Payments: 122

Church & Dwight Co., Inc. (NYSE:CHD) is a consumer packaged goods company that mainly produces a wide range of household and personal care products. The company has been paying regular dividends to shareholders for the past 491 consecutive quarters and has raised its payouts for 28 years in a row. Its quarterly dividend currently comes in at $0.2838 per share for a dividend yield of 1.11%, as of April 6.

Church & Dwight Co., Inc. (NYSE:CHD) was a part of 30 hedge fund portfolios at the end of Q4 2023, compared with 33 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $1 billion.

12. Stanley Black & Decker, Inc. (NYSE:SWK)

Number of Hedge Fund Holders: 32

Consecutive Years of Dividend Payments: 147

Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturing company that specializes in the manufacturing of hand tools, power tools, and related accessories. The company declared a quarterly dividend of $0.81 per share on February 28, which was in line with its previous dividend. Overall, it has consistently paid dividends without fail for the past 147 years and also holds a 56-year track record of consistent dividend growth, which makes SWK one of the best dividend stocks on our list. The stock’s dividend yield on April 6 came in at 3.40%.

The number of hedge funds tracked by Insider Monkey owning stakes in Stanley Black & Decker, Inc. (NYSE:SWK) jumped to 32 in Q4 2023, from 19 in the previous quarter. These stakes have a consolidated value of over $416.6 million. With stakes worth nearly $60 million, Kensico Capital was the company’s largest stakeholder in Q4.

11. UGI Corporation (NYSE:UGI)

Number of Hedge Fund Holders: 33

Consecutive Years of Dividend Payments: 139

UGI Corporation (NYSE:UGI) is an American diversified energy company that mainly provides energy-related products and services to its consumers. The company offers a quarterly dividend of $0.375 per share and has a dividend yield of 5.98%, as of April 6. It is one of the best dividend stocks of all time as the company has paid regular dividends to shareholders for the past 139 years. Moreover, it has raised its payouts in each of these 36 years.

At the end of December 2023, 33 hedge funds in Insider Monkey’s database reported holding stakes in UGI Corporation (NYSE:UGI), growing from 29 in the previous quarter. These stakes are worth roughly $246 million in total.

10. Genuine Parts Company (NYSE:GPC)

Number of Hedge Fund Holders: 36

Consecutive Years of Dividend Payments: 76

Genuine Parts Company (NYSE:GPC) is next on our list of the best dividend stocks of all time. The American industrial supplies company has been rewarding shareholders with regular dividends since it went public in 1948. On February 14, the company declared a 5% hike in its quarterly dividend to $1.00 per share. This was the company’s 68th consecutive year of dividend growth. As of April 6, the stock has a dividend yield of 2.67%.

With a collective stake value of over $535 million, 36 hedge funds tracked by Insider Monkey held positions in Genuine Parts Company (NYSE:GPC) at the end of Q4 2023, up from 34 in the previous quarter. Among these hedge funds, D E Shaw was the company’s largest stakeholder in Q4.

9. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 37

Consecutive Years of Dividend Payments: 122

Chubb Limited (NYSE:CB) is a global insurance company that offers a wide range of related services to its consumers, including commercial and personal insurance. In February this year, the company increased its quarterly dividend to $0.91 per share, achieving its 31st consecutive annual dividend hike. Moreover, it has paid uninterrupted dividends to shareholders since 1902, which makes CB one of the best dividend stocks of all time. The stock has a dividend yield of 1.36%, as of April 6.

At the end of the fourth quarter of 2023, 37 hedge funds in Insider Monkey’s database invested in Chubb Limited (NYSE:CB), down from 43 in the previous quarter. The total value of these stakes is more than $942.3 million.

8. PPG Industries, Inc. (NYSE:PPG)

Number of Hedge Fund Holders: 39

Consecutive Years of Dividend Payments: 125

PPG Industries, Inc. (NYSE:PPG) is an American paint and coating manufacturing company that also specializes in optical products and specialty materials. The company offers a quarterly dividend of $0.65 per share and supports a dividend yield of 1.87%, as recorded on April 6. It has maintained an unbroken streak of consistent dividend payments since 1899 and has also raised its dividends for 52 consecutive years in a row. It is among the best dividend stocks of all time.

According to Insider Monkey’s database of Q4 2023, 39 hedge funds held stakes in PPG Industries, Inc. (NYSE:PPG), worth collectively over $1.4 billion. With roughly 2 million shares, Millennium Management was the company’s leading stakeholder in Q4.

7. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 40

Consecutive Years of Dividend Payments: 124

General Mills, Inc. (NYSE:GIS) has been rewarding shareholders with regular dividends for the past 124 consecutive years. The multinational food company produces and markets a wide range of branded consumer foods. It currently pays a quarterly dividend of $0.59 per share and as of April 4, the stock has a dividend yield of 3.38%.

Insider Monkey’s database of Q4 2023 indicated that 40 hedge funds held stakes in General Mills, Inc. (NYSE:GIS), up from 39 in the preceding quarter. The overall value of these stakes is over $831 million.

6. Johnson Controls International plc (NYSE:JCI)

Number of Hedge Fund Holders: 44

Consecutive Years of Dividend Payments: 137

Johnson Controls International plc (NYSE:JCI) ranks sixth on our list of the best dividend stocks of all time. The multinational conglomerate company specializes in building technologies and solutions and also offers energy storage solutions. The company has paid regular dividends to shareholders since 1887 and currently offers a quarterly dividend of $0.37 per share. As of April 6, the stock has a dividend yield of 2.27%.

At the end of Q4 2023, 44 hedge funds in Insider Monkey’s database held stakes in Johnson Controls International plc (NYSE:JCI), growing from 43 in the previous quarter. The consolidated value of these stakes is more than $2.5 billion. Ken Fisher’s Fisher Asset Management was the largest stakeholder of the company, owning over 13.5 million shares.

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