These stocks have consistently raised their dividends for over a decade, offering payouts significantly above the S&P 500 average.
If you’re on the lookout for solid, income-generating investments that can comfortably fit into a long-term portfolio, you might want to consider the stocks listed here. They meet the criteria for buy-and-hold investments and offer high yields, not to mention they’ve been increasing their dividends for years.
AbbVie, Home Depot, and Exxon Mobil are great examples. These companies can offer a broader range for your portfolio while ensuring a consistent cash flow over time. Let’s explore why they’re considered some of the best dividend stocks available right now.
AbbVie
AbbVie, a pharmaceuticals company, currently provides a yield of around 2.9%, which is more than double the S&P 500 average of 1.2%. Originally part of Abbott Laboratories, AbbVie has a solid track record that dates back to 2013, accumulating more than 50 years of history as a dividend performer. This makes AbbVie a true dividend king.
The recent increase in dividends by 5.5% relates to strong financial outcomes. Since becoming independent from Abbott Labs, AbbVie has upped its quarterly dividends by over 330%. It’s not just about continuing a winning streak; the company is committed to providing meaningful returns to its shareholders.
This year, AbbVie has reported impressive growth, with sales rising by 8% to $44.5 billion. While Humira may no longer be its top seller, the company has successfully transitioned to other therapies like Skyrizi and Rinvoq, bringing in a combined $18.5 billion in the first three quarters, far surpassing Humira’s total of $3.3 billion during the same period. AbbVie stands as one of the most reliable dividend stocks in the healthcare sector with a diverse portfolio of treatments for various conditions.
Home Depot
Home Depot, a leading player in the home improvement market, is also a noteworthy dividend growth stock. While its growth hasn’t matched the impressive streak of AbbVie, it has increased its dividends for 16 years straight, including a more than 50% rise since 2020.
The company currently holds a dividend yield of 2.7%, which is pretty solid for a retailer. Despite facing headwinds as discretionary spending struggles amid challenging economic conditions, Home Depot is still projecting a sales growth of 3% for this fiscal year, which ends in January.
Although its stock has dropped 13% since the start of the year due to concerns over potential financial slumps, it remains a key name in home repair. Spending on home maintenance may be postponed but is ultimately unavoidable. I genuinely believe that Home Depot will rebound from any downturn, as it has demonstrated resilience in the past.
Exxon Mobil
Shifting gears across healthcare, retail, and now oil and gas, ExxonMobil offers an opportunity to balance and diversify your investments. With a yield of 3.5%, it ranks as the highest on this list. As a leading player in oil and gas, ExxonMobil has managed to grow its dividends year after year, despite facing numerous challenges.
This company has seen its dividends rise at an average of 5.8% each year for 43 consecutive years. While revenue has been a bit unpredictable this year, with a drop of $3.7 billion to $22.3 billion, their earnings per share during this period were $5.16, surpassing the $4.12 paid out in dividends for the year.
Even though ExxonMobil’s earnings can be somewhat volatile, its ability to withstand uncertainty allows it to consistently offer increasing dividends to investors over time. The stock has appreciated by 8% since the beginning of the year, trading at 16 times forward earnings, which makes it an attractive option for income-focused investors.
