15 Stocks That Have Increased Their Dividends for Over 25 Years

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In this article, we take a look at 15 stocks that have increased their dividends for over 25 years. If you want to see more stocks that have increased their dividends for over 25 years, go directly to 5 Stocks That Have Increased Their Dividends for Over 25 Years.

In addition to buybacks, dividends are one of the main ways a company returns excess capital back to shareholders.

Shareholders generally like companies to return their excess profits to prevent management from empire building by making bad acquisitions and to also be more efficient.

Although not always the case especially during tough times, many companies try to pay a quarterly dividend.

Like company profits, company dividends can fluctuate. If a company makes a lot of profits, management could decide to pay more of a dividend. If a company makes less profits or loses money, management could decide to pay less of a dividend or no dividend at all to conserve capital.

Given many companies see their earnings shrink during recessions given slower demand, recessions are one of the periods where companies decrease their dividends.

During recessions or tough times for a company, tough times, many companies also suspend their dividends.

Given the pandemic in 2020 which greatly disrupted company earnings, the Great Recession during 2008 and 2009, and the early 2000 recession, few companies have consistently raised their dividends every year for 25 years or more.

Companies that have raised their annual normal dividends for 25 years or more are also known as ‘Dividend Aristocrats’.

Although not necessarily the case for every company, generally most companies that raise their annual normal dividends every year for 25 years or more have pretty strong businesses that allow management to have the confidence to pay capital even during the pandemic or the Great Recession.

Many of the companies that have raised their annual dividends for 25 years or more are also in the consumer staples sector where demand doesn’t necessarily change as much for some companies.

2023 could be a challenging year economically as many economists believe there could be a recession given the Federal Reserve has raised interest rates substantially in the last twelve months and could increase rates further this year. As a result, many companies, including Dividend Aristocrats could face headwinds in the near term.

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Methodology

For our list of 15 Stocks That Have Increased Their Dividends for Over 25 Years, we selected stocks with competitive advantages that raised their dividends for 25 years or more.

We then ranked the stocks based on the number of consecutive years that the company has raised its annual dividend according to Dividend.com.

If two different companies tied in terms of the number of consecutive years they raised their annual dividends, we used their dividend yield according to Dividend.com as of January 20 as the tie breaker.

We also included the number of hedge funds in our database that held shares of the same stock at the end of Q3.

For those of you interested, also check out 10 Stocks with the Biggest Buybacks.

15 Stocks That Have Increased Their Dividends for Over 25 Years

15. General Dynamics Corporation (NYSE:GD)

Number of Years of Consecutive Dividend Increases: 26

Dividend Yield as of 1/20: 2.17%

Number of Hedge Fund Holders: 35

General Dynamics Corporation (NYSE:GD) is a global aerospace and defense company that has raised its annual dividend for 26 years. In terms of 2022, the company’s board of directors raised its quarterly dividend in March by 5.9% over 2021’s quarterly dividend to $1.26 per share. As a result of the dividend raises, General Dynamics Corporation (NYSE:GD) has a dividend yield of 2.17%.

Considering defense spending usually goes up over time, General Dynamics Corporation (NYSE:GD) has a stable business that is likely to maintain dividends if the company maintains its market share.

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

Number of Years of Consecutive Dividend Increases: 27

Dividend Yield as of 1/20: 1.26%

Number of Hedge Fund Holders: 40

Church & Dwight Co., Inc. (NYSE:CHD) makes personal care, household, and specialty products whose demand hasn’t changed substantially during tough economic times in the past. As a result, Church & Dwight Co., Inc. (NYSE:CHD) was profitable during the pandemic and the Great Recession. In terms of EPS estimates, analysts see Church & Dwight Co., Inc. (NYSE:CHD) earning $2.95 per share in 2022, $3.11 per share in 2023, and $3.37 per share in 2024. The company has raised its annual dividend 27 straight years and has a current dividend yield of 1.26%.

13. The Clorox Company (NYSE:CLX)

Number of Years of Consecutive Dividend Increases: 36

Dividend Yield as of 1/20: 3.31%

Number of Hedge Fund Holders: 27

The Clorox Company (NYSE:CLX) is a leading consumer staples company that has increased its annual dividend for 36 straight years. For Q1 fiscal year 2023, The Clorox Company (NYSE:CLX)’s adjusted EPS decreased 23% to $0.93 from $1.21 in the year ago quarter given macroeconomic headwinds. Nevertheless, management maintains its outlook for the year with an expected adjusted fiscal year 2023 EPS of between $3.85 to $4.22. The Clorox Company (NYSE:CLX) has a dividend yield of 3.31% as of 1/20.

12. Cintas Corporation (NASDAQ:CTAS)

Number of Years of Consecutive Dividend Increases: 39

Dividend Yield as of 1/20: 1.05%

Number of Hedge Fund Holders: 42

With 39 consecutive years of annual dividend increases, Cintas Corporation (NASDAQ:CTAS) ranks #12 on our list of 15 Stocks That Have Increased Their Dividends for Over 25 Years. Given the consistent years of dividend increases, Cintas Corporation (NASDAQ:CTAS)’s business of providing corporate identity uniforms and other business services has been pretty durable.

Cintas Corporation (NASDAQ:CTAS), which has a dividend yield of 1.05% as of 1/20, has also done well in terms of its stock performance with shares up over 6 fold since 2013. Although the stock may not do as well as it did in the past given that it’s a much larger company now, analysts nevertheless still expect Cintas Corporation (NASDAQ:CTAS) EPS on average to grow faster than the market for the next 5 years.

11. Air Products & Chemicals, Inc. (NYSE:APD)

Number of Years of Consecutive Dividend Increases: 41

Dividend Yield as of 1/20: 2.13%

Number of Hedge Fund Holders: 43

Air Products & Chemicals, Inc. (NYSE:APD) makes industrial gases and related equipment for diverse industries. As a result of demand growth, the company has raised its annual dividend 41 straight years. As a result of the dividend increases, Air Products & Chemicals, Inc. (NYSE:APD) has a dividend yield of 2.13% as of 1/20. In terms of the future, analysts see the company earning $11.39 per share in 2023, $12.53 per share in 2024, and $14.19 per share in 2025.

10. Automatic Data Processing (NASDAQ:ADP)

Number of Years of Consecutive Dividend Increases: 48

Dividend Yield as of 1/20: 2.11%

Number of Hedge Fund Holders: 48

Automatic Data Processing (NASDAQ:ADP) is a leading provider of human resources management software and services that has raised its annual dividend for 48 straight years. In terms of its business, Automatic Data Processing (NASDAQ:ADP) delivers payroll to over 25 million workers in the United States, or 1 in 6 workers in the country. The company estimates its market is big with a total addressable market of $150 billion, offering potential for more growth. Of the 920 hedge funds in our database, 48 owned shares of Automatic Data Processing (NASDAQ:ADP) at the end of the third quarter.

9. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Years of Consecutive Dividend Increases: 49

Dividend Yield as of 1/20: 2.05%

Number of Hedge Fund Holders: 61

While the higher interest rates have cooled the housing market, home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW) nevertheless raised its annual dividend last year. In May 2022, Lowe’s Companies, Inc. (NYSE:LOW)’s board of directors increased the quarterly dividend by 31% to $1.05 per share. As of 1/20, Lowe’s Companies, Inc. (NYSE:LOW) has a dividend yield of 2.05% and a forward P/E ratio of 14.65.

8. Walmart Inc. (NYSE:WMT)

Number of Years of Consecutive Dividend Increases: 50

Dividend Yield as of 1/20: 1.59%

Number of Hedge Fund Holders: 68

Given the high inflation, more people are shopping at Walmart Inc. (NYSE:WMT) and the company has benefited with 8.7% revenue growth for Q3 fiscal 2023. Walmart Inc. (NYSE:WMT)’s U.S. comparable sales also rose 8.2% year over year. Given its durable business and earnings growth over time, Walmart Inc. (NYSE:WMT) has raised its annual dividend 50 straight years, ranking #8 on our list of 15 Stocks That Have Increased Their Dividends for Over 25 Years.

7. PepsiCo, Inc. (NASDAQ:PEP)

Number of Years of Consecutive Dividend Increases: 51

Dividend Yield as of 1/20: 2.71%

Number of Hedge Fund Holders: 72

PepsiCo, Inc. (NASDAQ:PEP) has a pretty consistent business given that demand for soft drinks and snacks hasn’t changed that much during past recessions. As a result, PepsiCo, Inc. (NASDAQ:PEP) has increased its annual dividend for 51 consecutive years. As of 1/20, PepsiCo, Inc. (NASDAQ:PEP) has a dividend yield of 2.71%. In Q3 2022, the company achieved net revenue growth of 8.8% with organic revenue growth of 16% year over year. Core constant currency EPS grew 14% year over year.

6. Kimberly-Clark Corporation (NYSE:KMB)

Number of Years of Consecutive Dividend Increases: 51

Dividend Yield as of 1/20: 3.43%

Number of Hedge Fund Holders: 34

Kimberly-Clark Corporation (NYSE:KMB) third quarter net sales rose 1% year over year and its organic sales rose 5% year over year.  Given it is a leading consumer staple, demand for Kimberly-Clark Corporation (NYSE:KMB)’s products doesn’t change all that much and the company has increased its annual dividend for 51 straight years. 34 hedge funds in our database owned shares of Kimberly-Clark Corporation (NYSE:KMB) at the end of Q3.

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Disclosure: None. 15 Stocks That Have Increased Their Dividends for Over 25 Years is originally published on Insider Monkey.