In this article, we discuss 14 best consistent dividend stocks to invest in. You can skip our detailed analysis of dividend stocks and the performance of dividend growers over the years, and go directly to read 5 Best Consistent Dividend Stocks To Invest In.
Maintaining a consistent approach is crucial in the realm of investing in dividend stocks. Numerous American companies have adhered to this principle, contributing to a notable increase in dividend distributions over the years. S&P Dow Jones Indices data revealed that the dividend payments of S&P 500 companies totaled $420 billion in 2017, surging to $565 billion in 2022. The trend continued in 2023, setting a new record with dividend payments reaching an impressive $588.2 billion. The most recent report from S&P Dow Jones pointed out that there were 707 instances of dividend increases in the fourth quarter of 2023. The cumulative amount of these increases reached $17.5 billion for the quarter, marking an increase from the $16.3 billion reported in the same period of 2022.
Companies displaying consistent growth in dividends have attracted the interest of investors, prompting companies to undertake the challenging task of sustaining and expanding their dividends, even during market downturns. This strategic approach has proven to be beneficial for these companies, as those experiencing dividend growth have yielded substantial returns over the years. According to a Cohen & Steers report, during the decade leading up to 2010, dividend-paying companies outpaced non-payers by 620 basis points annually, with significantly lower risk measured by standard deviation. Over a 30-year period ending in 2011, the advantage of dividend-paying companies becomes even more pronounced. Notably, across each time frame during this period, the subset of dividend payers that increased or initiated dividends in the preceding 12 months exhibited higher returns and lower volatility compared to both payers and non-payers.
Aside from delivering robust returns, consistent dividend stocks have been playing a significant role in generating personal income. As per findings from S&P Dow Jones Indices, dividends have progressively become a more substantial source of income over the past four decades. In December 1981, dividends constituted only 2.88% of total income, a figure that has increased to 6.25% of all income as of March 2022. The report also highlighted the average year-over-year annual percentage growth rate in dividends for the existing constituents of the S&P U.S. Dividend Growers Index. Over the last 15 years, the average year-over-year dividend growth rate stood at 13.71%, outpacing the average year-over-year U.S. Consumer Price Index (CPI) rate of 2.21% during the same timeframe.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best consistent dividend stocks as these companies have raised their dividends regularly for decades. In this article, we will further take a look at consistent dividend stocks.
14 Best Consistent Dividend Stocks To Invest In
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Our Methodology:
We compiled this list by examining Insider Monkey's Q3 2023 database and identifying companies that have consistently increased their dividends for a minimum of 15 consecutive years. From this pool, we specifically chose stocks with dividend yields of at least 1% as of January 31. The stocks are ranked in ascending order of the number of hedge funds having stakes in them as of Q3 2023. 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).
Amcor plc (NYSE:AMCR) is a global packaging company that provides a wide range of packaging solutions for various industries. In 2023, the company achieved its 40th annual consecutive dividend growth, which makes AMCR one of the best consistent dividend stocks on our list. The company offers a quarterly dividend of $0.1250 per share and has a dividend yield of 5.23%, as of January 31.
At the end of Q3 2023, 23 hedge funds in Insider Monkey's database reported having stakes in Amcor plc (NYSE:AMCR), compared with 24 in the previous quarter. The consolidated value of these stakes is over $206.2 million.
The J. M. Smucker Company (NYSE:SJM) is an American multinational food and beverage company that is well-known for its diverse portfolio of consumer products. The company announced a quarterly dividend of $1.06 per share on January 19, which fell in line with its previous dividend. Overall, the company maintains a 22-year streak of consistent dividend growth, which places SJM on our list of the best consistent dividend stocks. The stock's dividend yield on January 31 came in at 3.19%.
As of the end of Q3 2023, 33 hedge funds in Insider Monkey's database owned stakes in The J. M. Smucker Company (NYSE:SJM), growing from 29 in the preceding quarter. These stakes are collectively valued at roughly $460 million. Among these hedge funds, Cliff Asness' AQR Capital Management was the company's leading stakeholder in Q3.
The Clorox Company (NYSE:CLX) is next on our list of the best consistent dividend stocks to invest in. The multinational consumer goods company has been growing its dividends for the past 20 consecutive years. Its current quarterly dividend comes in at $1.20 per share for a dividend yield of 3.29%, as of January 31.
At the end of September 2023, 34 hedge funds tracked by Insider Monkey owned stakes in The Clorox Company (NYSE:CLX), which remained unchanged from the previous quarter. These stakes have a total value of more than $534.3 million.
Enbridge Inc. (NYSE:ENB) is a Canadian energy infrastructure company that operates a diverse portfolio of assets involved in the transportation, distribution, and generation of energy. In November 2023, the company declared a 3% hike in its quarterly dividend to C$0.915 per share. This was the company's 29th consecutive annual dividend increase, which makes ENB one of the best consistent dividend stocks on our list. As of January 31, the stock has a dividend yield of 7.59%.
The number of hedge funds tracked by Insider Monkey owning stakes in Enbridge Inc. (NYSE:ENB) grew to 35 in Q3 2023, from 28 in the previous quarter. These stakes are worth over $401 million in total. With 4.1 million shares, Zimmer Partners was the company's leading stakeholder in Q3.
Canadian Natural Resources Ltd (NYSE:CNQ) is another Canadian company that made it to our list of the best consistent dividend stocks. The energy company is primarily engaged in the exploration, development, and production of oil and natural gas. It currently pays a quarterly dividend of C$1.00 per share, having raised it by 11% in November 2023. Through this increase, the company stretched its dividend growth streak to 25 years. The stock's dividend yield on January 31 came in at 4.53%.
Insider Monkey's database of Q3 2023 indicated that 41 hedge funds owned stakes in Canadian Natural Resources Ltd (NYSE:CNQ), growing from 36 in the preceding quarter. These stakes are collectively valued at roughly $3 billion.
United Parcel Service, Inc. (NYSE:UPS) is known for its worldwide package delivery services. The company offers domestic and international shipping solutions for packages of various sizes and weights. On January 30, the company raised its quarterly dividend by 0.6% to $1.63 per share. This marked the company's 22nd consecutive year of dividend growth. The stock has a dividend yield of 4.47%, as of January 31. In addition to its strong dividend growth, the company has also remained committed to its shareholder obligation, returning approximately $7.6 billion to investors through dividends and share repurchases in FY23.
According to Insider Monkey's database of Q3 2023, 42 hedge funds owned stakes in United Parcel Service, Inc. (NYSE:UPS), compared with 47 in the previous quarter. The collective value of these stakes is nearly $2 billion. Viking Global was the company's leading stakeholder among these hedge funds.
Chubb Limited (NYSE:CB) is an American insurance company that provides a range of insurance and reinsurance products and services. The company also offers personal insurance solutions to individuals, covering areas such as homeowners insurance, auto insurance, valuable possessions, and personal liability. The company pays a quarterly dividend of $0.86 per share and has a dividend yield of 1.41%, as of January 31. With 30 consecutive years of dividend growth, CB is one of the best consistent dividend stocks on our list.
Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 43 funds owned stakes in Chubb Limited (NYSE:CB), compared with 50 in the previous quarter. Their collective stake value is over $1.13 billion.
Caterpillar Inc. (NYSE:CAT) is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company has been growing its dividends for the past 29 consecutive years and it currently pays a quarterly dividend of $1.30 per share. The stock's dividend yield on January 31 came in at 1.71%.
The number of hedge funds tracked by Insider Monkey owning stakes in Caterpillar Inc. (NYSE:CAT) stood at 50 in Q3 2023, the same as in the previous quarter. These stakes are worth collectively nearly $6 billion.
6. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 53
International Business Machines Corporation (NYSE:IBM) ranks sixth on our list of the best consistent dividend stocks to invest in. The multinational tech company currently pays a quarterly dividend of $1.66 per share and offers a dividend yield of 3.53%, as of January 31. It has raised its dividends for 28 consecutive years.
At the end of September 2023, 53 hedge funds in Insider Monkey’s database owned stakes in International Business Machines Corporation (NYSE:IBM), up from 51 in the previous quarter. The consolidated value of these stakes is nearly $843 million.