In this article, we will discuss some of the best dividend stocks with consistent dividend payments.
Stocks that pay dividends, especially those backed by strong financial health and attractive yields, offer investors a reliable income stream, protection during market declines, and the potential for steady investment growth. This year, investors have faced a dilemma: stick with their current strategies or shift focus toward the leading technology stocks driving much of the market’s gains. At the same time, many are considering how best to prepare their portfolios for a potential economic slowdown, given uncertainty about the Federal Reserve’s ability to achieve a soft landing. Analysts recommend incorporating dividend stocks into portfolios to better navigate these conditions.
Also read: 8 Magnificent Dividend Growth Stocks to Buy Now
Savita Subramanian, an equity and quant strategist at Bank of America Corp., also advised investors to load up on dividend stocks. Here is what the analyst said:
“You want to be in safe dividends — and I know this is the most boring call of all time, but sometimes boring is good. We believe that we are now in a total return world in which the contribution of dividends to total market returns could be significantly higher than it was in the last decade, a period marked by falling cash yields and lofty price returns. We advise investors to seek out companies with above-market and secure (not stretched) dividend yields.”
Investors have shown growing interest in companies that consistently increase their dividends. This has pushed many firms to prioritize maintaining and growing dividends, even during economic challenges. Such efforts have paid off, as companies with a history of dividend growth have delivered strong long-term returns. A report by Cohen & Steers highlighted this trend, noting that between 2000 and 2010, dividend-paying companies outperformed non-payers by an annual margin of 620 basis points while exhibiting significantly lower risk, as measured by standard deviation. Over a 30-year span ending in 2011, the benefits of dividend-paying firms were even more evident. Among these, companies that initiated or raised dividends within the prior year consistently outperformed both other dividend payers and non-payers, achieving higher returns with reduced volatility.
In addition to offering strong returns, stocks with consistent dividend payouts have become a vital source of personal income. Research from S&P Dow Jones Indices revealed that dividends have steadily grown as a share of personal income over the last four decades. Since Q4 1980, the contribution of dividends to personal income has risen from 2.68% to 7.88% in Q2 2024, while income from interest has declined from 14.58% to 7.61% during the same period. The report also highlighted the impressive growth of dividends among companies in the U.S. Dividend Growers Index. Over the past 15 years, these companies have achieved an average annual dividend growth rate of 13.71%, significantly outpacing the 2.21% average annual growth rate of the US Consumer Price Index (CPI) over the same period.
Dividend stocks are bound to regain their prominence, even though the tech sector has been dominating the spotlight lately. In view of this, we will discuss some of the best consistent dividend stocks to buy.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
We compiled this list by examining Insider Monkey’s Q3 2024 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 December 4. The stocks are ranked in ascending order of the number of hedge funds having stakes in them as of Q3 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).
10. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 30
The J. M. Smucker Company (NYSE:SJM) is an American food company that manufactures a wide range of food and beverage products. Originally established as a jelly company in 1897, the business has grown into a significant player in the consumer foods sector. Its operations are far more diverse than they may appear and extend beyond its current product range. The management team frequently sells off products that are no longer aligned with its strategy while acquiring brands they believe will boost profitability.
In fiscal Q2 2025, The J. M. Smucker Company (NYSE:SJM) reported revenue of $2.27 billion, which showed a 17% growth from the same period last year. The revenue also beat analysts’ estimates by over $6.2 million. The company’s gross profit came in at over $886 million, which also jumped by 22% on a YoY basis. 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)’s cash flow generation has allowed the company to pay consistent dividends to shareholders. In the most recent quarter, its operating cash flow came in at $404.2 million, up from $177 million in the prior-year period. The company’s free cash flow grew to $317.2 million, from $28.2 million in the same quarter last year.
The J. M. Smucker Company (NYSE:SJM) currently pays a quarterly dividend of $1.08 per share, having raised it by 2% in July this year. The company maintains a 23-year streak of dividend growth, which makes SJM one of the best dividend stocks on our list. The stock has a dividend yield of 3.74%, as of December 4.
At the end of Q3 2024, 30 hedge funds tracked by Insider Monkey reported having stakes in The J. M. Smucker Company (NYSE:SJM), compared with 34 in the previous quarter. These stakes have a collective value of over $834.5 million. Among these hedge funds, Ariel Investments was the company’s leading stakeholder in Q3.
9. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 41
The Clorox Company (NYSE:CLX) is a California-based company that manufactures a wide range of consumer and professional products. The company has faced significant challenges in recent years. The pandemic initially boosted sales as demand for cleaning products surged, but it overestimated the long-term shift in consumer behavior toward heightened hygiene. This miscalculation left Clorox overcommitted once pandemic restrictions eased. Adding to its troubles, the company suffered a cyberattack in 2023. Despite these setbacks, it has reported that its supply chain is now fully restored, along with most of the market share lost during the disruption. Since the start of 2024, the stock has surged by nearly 3%.
In fiscal Q1 2025, The Clorox Company (NYSE:CLX) reported a 27% YoY growth in its revenue at $1.76 billion. The company marked its eighth consecutive quarter of gross margin expansion, driven by solid cost-saving measures, and remains on track to fully restore its gross margin by fiscal year 2025. It also finalized the divestiture of its Better Health VMS business, building on the earlier sale of its Argentina operations. These actions align with the company’s strategy to streamline its portfolio, reduce volatility, accelerate sales growth, and enhance its structural margin performance.
In the first nine months of its fiscal year, The Clorox Company (NYSE:CLX) reported an operating cash flow of $221 million, which showed a 1,005% growth from the same period last year. The company’s quarterly dividend currently comes in at $1.22 per share for a dividend yield of 2.92%, as of December 3.
The number of hedge funds tracked by Insider Monkey owning stakes in The Clorox Company (NYSE:CLX) grew to 41 in Q3 2024, from 38 in the previous quarter. The collective value of these stakes is over $1.66 billion. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.