In this dividend achievers list, we will discuss dividend stocks with over 10 years of dividend growth.
Dividend investing has become increasingly popular over time, as generating regular income remains a key focus for investors. Companies that consistently raise their dividends are particularly appealing, offering not just earnings but the potential for increasing income. Investors typically look for a minimum of 10 years of dividend growth, which is where “dividend achievers” come in. These are companies that have raised their dividends for at least 10 consecutive years.
Dividends play an important role in the overall returns. Over the past 25 years, nearly half of the total return from U.S. equities has come from reinvested dividends and the power of compounding. The broader market achieved an average annual total return of 7.4% during this period, with 55% coming from price gains and 45% from reinvested dividends, as reported by Bloomberg.
Dividend growth stocks have consistently delivered solid returns over time. The Dividend Aristocrats Index, which tracks companies that have increased their dividends for at least 25 consecutive years, has performed well historically. In a January 2019 blog post titled “Exploring Dividend Growth Strategies for Market Downturns,” Phillip Brzenk, S&P’s global head of multi-asset indexes, examined the performance of dividend growth strategies, particularly during market downturns. It was noted that the dividend aristocrats index outperformed the market in 53% of cases, with an average outperformance of 0.16%. In declining markets, the aristocrats outperformed over 70% of the time, with an average gain of 1.13%. However, in rising markets, they underperformed 56% of the time, though the average underperformance was smaller, at -0.34%. This suggests that the dividend aristocrats provided downside protection during months when the broader market experienced losses.
Dividend growers can also help protect against inflation. As rising prices erode investors’ wealth, companies that consistently increase their dividends offer a way to counteract this. While interest rates may seem appealing today, they might not hold the same value in the future. On the other hand, investing in companies with strong business models, assets, and strategies that support long-term dividend growth is often more attractive than opting for short-term, higher-yield investments. A report by Abrdn PLC also highlighted that, over the past 20 years, companies that began paying dividends or consistently increased them outperformed the global index. These dividend growers and initiators also outshined companies that paid dividends without increasing them, as well as those that didn’t pay dividends at all. In addition, the report noted that dividend-growing companies experienced lower volatility and delivered better risk-adjusted returns during this period.
That said, high-yield dividend stocks aren’t necessarily a poor choice. Analysts suggest seeking yields in the 3% to 6% range. According to Nuveen, stocks that pay dividends and also show steady dividend growth can be a sign of quality, as they demonstrate a company’s ability to balance dividend payouts while reinvesting capital to support future growth. With this, we will discuss the dividend achievers’ list.
Photo by Annie Spratt on Unsplash
Our Methodology:
For this list, we looked at a group of dividend achievers, which are known for raising dividends for 10 years or more. From this list, we chose companies with the highest dividend yields as of September 22 and arranged them in order from lowest to highest yield.
We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 912 funds as of Q2 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).
15. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of September 22: 3.45%
American Electric Power Company, Inc. (NASDAQ:AEP) is an American domestic electric utility company that offers a wide range of energy services to its consumers. The company is experiencing exceptional growth in parts of its service area, thanks to a strong transmission network and emphasis on economic development. Commercial load grew by 12.4% in the second quarter of 2024 compared to the same quarter last year, largely driven by a more than 20% increase at its Transmission & Distribution companies as new data processing facilities became operational. The company also has customer commitments for over 15 gigawatts of additional load by the end of the decade.
In Q2 2024, American Electric Power Company, Inc. (NASDAQ:AEP) reported revenue of $4.6 billion, which showed a 2.7% growth from the same period last year. The company’s ongoing investments in a modern, affordable, and reliable energy system continue to provide value to both customers and communities while also contributing to the company’s earnings. Strong performance in the first half of the year, along with the team’s proven capability to manage operations effectively, enables AEP to reaffirm its 2024 earnings guidance range.
On July 24, American Electric Power Company, Inc. (NASDAQ:AEP) declared a quarterly dividend of $0.88 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 14 consecutive years, which makes it one of the best stocks for the dividend achievers list. The stock has a dividend yield of 3.45%, as of September 22.
The number of hedge funds tracked by Insider Monkey owning stakes in American Electric Power Company, Inc. (NASDAQ:AEP) grew to 35 in Q2 2024, from 29 in the previous quarter. These stakes have a total value of nearly $1.6 billion. Among these hedge funds, Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q2.
14. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield as of September 22: 3.64%
The J. M. Smucker Company (NYSE:SJM) is an Ohio-based food company that manufactures food and beverage products. What began as a jelly company in 1897 has evolved into a major force in the consumer foods industry. Today, it is much more diversified than many realize and isn’t limited by its existing product lineup. The management regularly divests from products it no longer supports and acquires brands that it believes can improve profitability.
The J. M. Smucker Company (NYSE:SJM) reported strong earnings in the most recent quarter, fueled by its focus on advancing core business operations, successfully integrating Hostess Brands, and meeting its transformation, cost control, and cash generation targets. In fiscal Q1 2025, the company posted revenue of $2.1 billion, which showed a significant 18% growth from the same period last year. 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) cash position was also strong in the most recent quarter. The company’s operating cash flow came in at $173 million and its free cash flow was $49.2 million. This cash generation has allowed the company to increase its dividends for 23 years in a row. It currently offers a quarterly dividend of $1.08 per share and has a dividend yield of 3.64%, as of September 22.
At the end of Q2 2024, 34 hedge funds tracked by Insider Monkey reported having stakes in The J. M. Smucker Company (NYSE:SJM), compared with 37 in the previous quarter. These stakes are worth over $844.2 million in total.
13. Edison International (NYSE:EIX)
Dividend Yield as of September 22: 3.66%
Edison International (NYSE:EIX) is an American utility holding company that is involved in the generation of electricity through various sources, including natural gas, nuclear, and renewable energy. The stock is up by over 18% since the start of 2024, benefitting a lot from a growing energy demand. During its recent earnings call, the company shared that its subsidiary, Southern California Edison (SCE), anticipates a 35% increase in load growth over the next 10 years, exceeding all prior internal and external forecasts. To accommodate this growth, SCE will need to significantly expand the electric grid to ensure it remains reliable, resilient, and prepared. These major investments will also create opportunities for ongoing rate-based growth.
In the second quarter of 2024, Edison International (NYSE:EIX) reported revenue of $$4.3 billion, which showed a 9.3% growth from the same period last year. The company ended the quarter with $465 million available in cash and cash equivalents, up from $345 million six months ago. Its operating cash flow for the quarter also grew to $1.4 billion, from $712 million in the prior year period. The company reaffirmed its target for core EPS growth of 5%-7% from 2021 to 2025 and maintained the same growth rate projection for 2025 to 2028.
Edison International (NYSE:EIX) is one of the best stocks on our dividend achievers list as the company has been rewarding shareholders with growing dividends for the past 20 years. The company offers a quarterly dividend of $0.78 per share and has a dividend yield of 3.66%, as of September 22.
As of the close of Q2 2024, 32 hedge funds in Insider Monkey’s database reported having stakes in Edison International (NYSE:EIX), growing from 25 in the previous quarter. These stakes have a total value of $1.4 billion. With 13 million shares, Pzena Investment Management was the company’s leading stakeholder in Q2.
12. CubeSmart (NYSE:CUBE)
Dividend Yield as of September 22: 3.78%
CubeSmart (NYSE:CUBE) ranks twelfth on our dividend achievers list. The American real estate investment trust company invests in self-storage facilities across the country. In September, RBC Capital began coverage on REITs, giving CubeSmart an Outperform rating. The firm expressed favor for the company’s strong presence in the New York City area, where supply challenges have diminished more quickly than in the broader market, potentially supporting continued rent growth. Analysts noted that CubeSmart’s 3PM business ranks among the best in its sector, and the company’s smaller size means that adding new locations has a greater impact. They also highlighted the company’s unique geographically diverse portfolio compared to other storage REITs, with its third-party management platform adding significant value. Additionally, RBC Capital praised its strong balance sheet, noting its low leverage offers room for future acquisitions, and set a price target of $56.
In the second quarter of 2024, CubeSmart (NYSE:CUBE) reported revenue of $266.2 million, up 2.07% from the same period last year. The company’s data-driven approach to operations continues to enable it to optimize performance despite shifting macroeconomic conditions. During the quarter, it added 39 stores to its third-party management platform, raising the total number of stores managed to 879.
CubeSmart (NYSE:CUBE) is favored by investors due to its strong dividend history. The company has raised its payouts for 15 consecutive years. In the past five years, it has raised its payouts at an annual average rate of 10%. The company currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 3.78%, as of September 22.
Insider Monkey’s database of Q2 2024 indicated that 23 hedge funds owned stakes in CubeSmart (NYSE:CUBE), compared with 25 in the previous quarter. These stakes have a total value of over $225 million.
11. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of September 22: 3.86%
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics company that deals in a wide range of related products and services. The stock has surged by nearly 26% since the start of 2024 as the company surprised investors and analysts with its earnings this year. In fiscal Q2 2025, it reported revenue of $9.3 billion, which beat analysts’ estimates by $41.4 million.
Best Buy Co., Inc. (NYSE:BBY)’s computer sales were the highlight of the quarter, with domestic tablet and computing categories experiencing a combined sales growth of 6% compared to the previous year. Leveraging its market position, knowledgeable sales associates, and attractive merchandising, the company was able to take advantage of the increased demand stemming from customers wanting to replace or upgrade their products, along with the introduction of new innovations.
Best Buy Co., Inc. (NYSE:BBY) also remained strong from a cash point of view. The company ended the quarter with $1.4 billion available in cash and cash equivalents, up from $1.1 billion in the prior year period. Its operating cash flow showed a significant growth at $817 million, from just $181 million in the year-ago period. During the quarter, the company returned $203 million to shareholders through dividends.
On August 29, Best Buy Co., Inc. (NYSE:BBY) declared a quarterly dividend of $0.94 per share, which was consistent with its previous dividend. The company is one of the best stocks on our dividend achievers list with 11 years of dividend growth under its belt. As of September 22, the stock supports a dividend yield of 3.86%.
The number of hedge funds owning stakes in Best Buy Co., Inc. (NYSE:BBY) grew to 37 in Q2 2024, from 30 in the previous quarter, according to Insider Monkey’s database. These stakes are worth over $650 million in total. Among these hedge funds, D E Shaw was the company’s largest stakeholder in Q2.
10. Flowers Foods, Inc. (NYSE:FLO)
Dividend Yield as of September 22: 4.10%
Flowers Foods, Inc. (NYSE:FLO) ranks tenth on our dividend achievers list. The Georgia-based company specializes in producing and marketing bakery products. On August 22, the company announced a quarterly dividend of $0.24 per share, which fell in line with its previous dividend. Overall, it holds a 22-year track record of dividend growth. The stock’s dividend yield on September 22 came in at 4.10%.
In Q2 2024, Flowers Foods, Inc. (NYSE:FLO)’s brands surpassed the fresh packaged bread category, achieving growth in units across tracked channels and leading in both unit and dollar share gains. Private label and away-from-home margins continued to show positive trends as profitability improved in existing accounts, and new, higher-margin business filled available capacity. Additionally, cost-saving initiatives are making a significant impact, resulting in a notable sequential improvement in expenses.
Flowers Foods, Inc. (NYSE:FLO)’s strong cash position helped it achieve a long dividend growth streak. In the first six months of the year, the company generated $168.4 million in operating cash flow. The company also remained committed to its shareholders’ obligation, returning $102 million to investors through dividends. It had $7 million available in cash and cash equivalents at the end of the quarter. The company had $3.4 billion available in total assets.
Flowers Foods, Inc. (NYSE:FLO) was a part of 26 hedge fund portfolios at the end of Q2 2024, compared with 27 in the previous quarter, as per Insider Monkey’s database. These stakes are valued at $269 million in total.
9. Tompkins Financial Corporation (NYSE:TMP)
Dividend Yield as of September 22: 4.16%
Tompkins Financial Corporation (NYSE:TMP) is an American financial services company that offers a wide range of related services to its consumers. The stock has recorded strong returns, surging by over 20% in the past 12 months. It has been grabbing investors’ attention because of its solid operating performance.
Tompkins Financial Corporation (NYSE:TMP)’s year-to-date and second-quarter results have been positively influenced by a stabilizing net interest margin and overall business growth. Year-over-year, loans increased by 7.7%, while noninterest income rose by 33% for the year to date, or 10% when excluding the loss from the sale of securities in the second quarter of 2023. The company has maintained a strong focus on managing expenses, with noninterest expenses down by 2.3% year to date. As it continues to optimize its balance sheet, the company is experiencing improved operating results, with stable and growing revenue alongside reduced expenses. Looking ahead, the company aims to foster growth through quality customer relationships, supported by robust capital and liquidity.
Tompkins Financial Corporation (NYSE:TMP) ended the quarter with $71 million in cash and cash equivalents. The company currently pays a quarterly dividend of $0.61 per share, having raised it by 1.7% in April this year. This marked the company’s 37th consecutive year of dividend growth, which makes TMP one of the best stocks on our dividend achievers list. The stock has a dividend yield of 4.16%, as of September 22.
According to Insider Monkey’s database of Q2 2024, 7 hedge funds owned stakes in Tompkins Financial Corporation (NYSE:TMP), up from 6 in the previous quarter. These stakes have a total value of $7.7 million. Among these hedge funds, D E Shaw was the company’s largest stakeholder in Q2.
8. Evergy, Inc. (NASDAQ:EVRG)
Dividend Yield as of September 22: 4.18%
Evergy, Inc. (NASDAQ:EVRG) is a Missouri-based electric services company that provides electricity generation, transmission, and distribution services to residential, commercial, industrial, and wholesale customers. The economic development pipeline in both Kansas and Missouri remained strong during the recent quarter. The company’s emphasis on affordability and regional rate competitiveness plays a key role in supporting this large pipeline, laying a foundation for growth in both states. Moreover, it is eager to collaborate with potential new customers considering the region, building on past successes with projects like the Panasonic electric vehicle battery plant and the Meta and Google data centers. The stock has surged by nearly 16% since the start of 2024.
Artisan Partners also highlighted Evergy, Inc. (NASDAQ:EVRG)’s performance in its Q1 2024 investor letter. Here is what the firm has to say:
“In Q1, we added two utilities to the portfolio: Alliant Energy and Evergy, Inc. (NASDAQ:EVRG). Evergy serves more than 1.7 million customers in Kansas and Missouri. In addition to the aforementioned dynamics weighing on utilities share prices, Evergy had two key rate cases in 2023, one in Kansas and the other in Missouri, that presented risk for investors. The Missouri case went better than expected, but the returns allowed by the Kansas regulator were punishingly low. Though Evergy operates in a subpar regulatory environment, the utility is a good operator, with strong customer satisfaction scores, below-average capex needs and a clean balance sheet. The regulatory environment may improve at some point, but even if it does not, Evergy trades for just 13X 2024 earnings, which is below average relative to its history and peers— and pays a dividend yielding 4.7%.”
In the second quarter of 2024, Evergy, Inc. (NASDAQ:EVRG) reported revenue of $1.45 billion, which showed a 7% growth from the same period last year. The company’s cash position was also strong, ending the quarter with over $26 million in cash and cash equivalents. It generated $635 million in operating cash flow in the first six months of the year. During this period, the company returned $296 million to shareholders through dividends.
Evergy, Inc. (NASDAQ:EVRG)’s cash position has allowed the company to maintain a consistent dividend history. On August 9, the company declared a quarterly dividend of $0.6425 per share, which fell in line with its previous dividend. Its dividend growth streak spans over 19 years, which makes it one of the best stocks on our dividend achievers list. The stock offers a dividend yield of 4.18%, as of September 22.
At the end of June 2024, 36 hedge funds tracked by Insider Monkey held stakes in Evergy, Inc. (NASDAQ:EVRG), up from 35 in the previous quarter. These stakes have a consolidated value of $1.23 billion.
7. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of September 22: 4.28%
Black Hills Corporation (NYSE:BKH) ranks seventh on our dividend achievers list. The American natural gas distribution company provides electric and gas utility services across the country. The stock is underperforming the broader market this year so far, returning over 11%. A key factor behind the stock’s decline was the company’s higher leverage compared to many of its peers, which became a drawback as interest rates increased. However, with the US central bank cutting interest rates for the first time in four years, the company is now better positioned to improve its performance.
Black Hills Corporation (NYSE:BKH) continues to make strides in its customer-focused strategy and is looking forward to powering Meta’s new AI data center in Cheyenne, which is expected to come online in 2026. The team remains successful in attracting new data centers due to its top-tier reliability and innovative energy solutions, including specialized tariffs and a capital-light energy procurement model.
Black Hills Corporation (NYSE:BKH) is a strong dividend payer with 54 consecutive years of dividend growth. The company pays a quarterly dividend of $0.65 per share and has a dividend yield of 4.28%, as of September 22. In the past five years, it has raised its payouts at an annual average rate of nearly 5%.
As of the close of Q2 2024, 22 hedge funds in Insider Monkey’s database owned stakes in Black Hills Corporation (NYSE:BKH), compared with 27 in the previous quarter. These stakes have a consolidated value of $136 million. With over 1.1 million shares, AQR Capital Management was the company’s leading stakeholder in Q2.
6. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of September 22: 4.86%
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical industry company that offers innovative medicines and therapies to patients with serious illnesses. Earlier this year, the company completed a $14 billion acquisition of Karuna Therapeutics, along with its experimental psychosis treatment, KarXT. However, the stock declined after the company recorded a $12.9 billion charge for in-process research and development in the first quarter, related to this acquisition. Since the start of 2024, BMY has fallen by over 5%.
That said, Bristol-Myers Squibb Company (NYSE:BMY) continues to have strong growth potential. In Q2 2024, the company reported $12.2 billion in revenue, reflecting a 9% increase compared to the same period last year. Its Growth and Legacy portfolios contributed to a 13% year-over-year rise in US revenue, reaching $8.8 billion. The company’s development pipeline includes five experimental drugs in late-stage clinical trials. With multiple growth drivers on the horizon and several already in the commercial phase, BMY is well-positioned to maintain consistent cash flow.
The company’s robust cash flow has been a key factor in supporting its solid dividend track record. Bristol-Myers Squibb Company (NYSE:BMY) has a trailing twelve-month operating cash flow of $14.1 billion and its levered free cash flow came in at $15.7 billion. The company holds an 18-year streak of consistent dividend growth, which makes BMY one of the best stocks on our dividend achievers’ list. It currently offers a quarterly dividend of $0.60 per share and has a dividend yield of 4.86%, as of September 22.
At the end of Q2 2024, 61 hedge funds tracked by Insider Monkey held stakes in Bristol-Myers Squibb Company (NYSE:BMY), up from 57 in the previous quarter. These stakes have a total value of more than $2.5 billion.
5. Avista Corporation (NYSE:AVA)
Dividend Yield as of September 22: 4.96%
Avista Corporation (NYSE:AVA) is a Washington-based energy company that specializes in the transmission, production, and distribution of energy and other related businesses. The company began serving a new large electric customer as of August 1 and expects that the revenue from this customer will significantly help offset higher power supply costs in 2024. Since the start of the year, the stock delivered a 7% return to shareholders.
In the second quarter of 2024, Avista Corporation (NYSE:AVA) reported revenue of $402 million, which showed a 6% growth from the same period last year. This growth in revenue reflects the strength of the company’s core utility operations, with second-quarter utility earnings meeting expectations. Its investments in the grid ensured reliable and stable system performance during the recent heat wave in the Western region.
On August 7, Avista Corporation (NYSE:AVA) declared a quarterly dividend of $0.475 per share, in line with its previous dividend. In February this year, the company achieved its 22nd consecutive year of dividend growth, which makes AVA one of the best stocks on our dividend achievers list. As of September 22, the stock has a dividend yield of 4.96%.
Avista Corporation (NYSE:AVA) was included in 23 hedge fund portfolios at the end of Q2 2024, growing from 18 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of more than $64 million. Israel Englander’s Millennium Management owned the largest stake in the company in Q2.
4. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of September 22: 5.07%
United Parcel Service, Inc. (NYSE:UPS) is a multinational shipping and supply chain management company that offers various related services to its consumers. The company is a strong dividend payer, having raised its payouts for 22 years in a row. In the past five years, it increased its dividends at an annual average rate of 12%. This dividend growth is mainly attributed to its stable cash position. In the first six months of the year, it posted an operating cash flow of $5.3 billion and its free cash flow for the period amounted to $3.3 billion. The company’s quarterly dividend sits at $1.63 per share for a dividend yield of 5.07%, as of September 22.
United Parcel Service, Inc. (NYSE:UPS) has faced challenges adapting to a changing business environment, characterized by reduced shipping demand and increasing inflationary pressures. It fell short of high-growth expectations as analysts noted a decline in package volumes. Additionally, rising fuel and labor costs squeezed profit margins, impacting earnings. In Q2 2024, the company reported $21.8 billion in revenue, a 1.07% decrease from the same period last year, while operating profit dropped 30% year-over-year to $1.9 billion. The stock is down by over 18% since the start of 2024.
Analysts are reevaluating their outlook on the company in light of its ongoing challenges. ClearBridge Investments also decreased its position in United Parcel Service, Inc. (NYSE:UPS) in the second quarter of 2024 and made the following comment in its Q2 2024 investor letter:
“Our industrials holdings weighed on relative performance as we are more exposed to transports such as “less than truckload” provider XPO and parcel delivery company United Parcel Service, Inc. (NYSE:UPS), which are struggling with weak volumes during the post-COVID freight recession. With industry volumes down to pre-COVID levels and strong pricing power in the LTL space in particular, we believe that the next upcycle will prove to be very strong for earnings. As a result, we added to XPO in the quarter while reducing our position in UPS on concerns that industry capacity remains excessive. Meanwhile, we have less exposure to electrical equipment stocks, which have been rewarded by views that they will benefit from the buildout of AI data centers.”
As per Insider Monkey’s database of Q2 2024, 44 hedge funds held stakes in United Parcel Service, Inc. (NYSE:UPS), up from 43 in the previous quarter. These stakes have a total value of over $1.3 billion.
3. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of September 22: 5.96%
Franklin Resources, Inc. (NYSE:BEN) is an American multinational asset management company, headquartered in California. The company offers a wide range of investment solutions and services. The company reported preliminary assets under management of $1.68 trillion as of August 31, 2024, marking a 1.1% increase from $1.66 trillion on July 31, 2024. The monthly growth was primarily attributed to favorable market conditions, although it was somewhat tempered by long-term net outflows.
In fiscal Q3 2024, Franklin Resources, Inc. (NYSE:BEN) reported revenue of $2.1 billion, which fell by 1% on a YoY basis. However, the company’s operating income of $222.5 million jumped significantly by 72% from the same period last year. Its cash position was also strong with $6.8 billion available in total cash and investments at the end of the quarter. The company significantly benefits from its acquisitions, gaining cost efficiencies and expanding its customer base through these strategic actions. The January acquisition of Putnam Investments, in particular, enhanced the company’s investment capabilities, which has been reflected in strong investment performance.
Franklin Resources, Inc. (NYSE:BEN) is a Dividend Achiever with 48 years of consistent dividend growth. The company has been distributing millions to shareholders every quarter. Its trailing twelve-month dividend amount jumped $656 million in the most recent quarter, from $610 million in the same period last year. In fiscal Q3 2024, the company returned $168 million to shareholders through dividends. It currently offers a quarterly dividend of $0.31 per share and has a dividend yield of 5.96%, as of September 22.
At the end of the second quarter of 2024, 27 hedge funds in Insider Monkey’s database owned stakes in Franklin Resources, Inc. (NYSE:BEN), compared with 31 in the previous quarter. These stakes have a collective value of $323 million.
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of September 22: 6.11%
Verizon Communications Inc. (NYSE:VZ) is a New York-based multinational telecommunications company that offers communications, technology, information, and entertainment services to its consumers. The stock is up over 14% since the start of 2024 as the company is intriguing new initiatives this year.
The company has been expanding its 5G network since its launch five years ago. With a robust spectrum portfolio and an extensive fiber optic network, it asserts that it provides the most reliable 5G service in the U.S., reaching over 200 million people. Recently, Verizon Communications Inc. (NYSE:VZ) also announced plans to acquire fiber-optic internet provider Frontier Communications in a $20 billion all-cash deal, aiming to increase its subscriber base. This acquisition will also enhance its competitive position against rivals AT&T and T-Mobile, both of which are concentrating on unlimited plans and bundled services.
Verizon Communications Inc. (NYSE:VZ) is one of the best dividend stocks on our dividend achievers list because of the company’s strong cash generation. In the first six months of the year, the company’s operating cash flow came in at $16.6 billion and its free cash flow amounted to $8.5 billion. This free cash flow grew from $8.5 billion in the same period last year.
Currently, Verizon Communications Inc. (NYSE:VZ) offers a quarterly dividend of $0.6775 per share, having raised it by 1.9% in September this year. Through this increase, the company achieved its 18th consecutive year of dividend growth. The stock has a dividend yield of 6.11%, as of September 22.
Verizon Communications Inc. (NYSE:VZ) was a part of 67 hedge fund portfolios at the end of Q2 2024, the same as in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $1.5 billion.
1. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of September 22: 7.58%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil pipeline company. It tops our dividend achievers list as the company has been growing its payouts for 26 consecutive years. Currently, it pays a quarterly dividend of $0.525 per share and has a dividend yield of 7.58%, as of September 22.
Unlike many energy companies that depend on commodity prices for their revenue and earnings, Enterprise Products Partners L.P. (NYSE:EPD) generates fees from the use of its assets. As a result, energy demand is more crucial to its performance than the prices of the products transported through its midstream system. This model provides stability since energy demand remains strong even when prices are low. In the second quarter of 2024, the company reported revenue of $13.5 billion, a 27% increase from the same period last year.
In addition to its revenue growth, Enterprise Products Partners L.P. (NYSE:EPD) saw its operating income rise to $1.8 billion in Q2 2024, up from $1.5 billion in the previous year. The company’s strong cash flow supports its dividend payments, generating $1.8 billion in distributable cash flow (DCF) in the latest quarter, an increase from $1.7 billion in the same period last year. Its operating cash flow also rose to $2.1 billion, compared to $1.9 billion in Q2 2023. Furthermore, the company maintains a sustainable payout ratio, which was 55% of the adjusted cash flow from operations for the twelve months ending June 30, factoring in distributions to common unitholders and buybacks of partnership common units.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 23 funds held stakes in Enterprise Products Partners L.P. (NYSE:EPD), which was the same as in the previous quarter. The consolidated value of these stakes is roughly $310 million.
Overall, Enterprise Products Partners L.P. (NYSE:EPD) ranks first on our list. While we acknowledge the potential for EPD 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 timeframe. If you are looking for an AI stock that is more promising than EPD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
