In this article, we will take a look at some of the best dividend stocks with over 20 years of dividend growth.
Historically, companies that initiate and consistently increase their dividends have delivered stronger returns than the overall market and have significantly outperformed those that cut or do not pay dividends. A report by RMB Capital found that between January 1972 and December 2018, dividend growers and initiators achieved an average annual return of 9.62%, surpassing dividend payers, which returned 8.78%. In contrast, companies that cut or eliminated their dividends during that period saw a decline of 0.79%.
Once a company begins increasing its dividends, it is usually determined to continue doing so. This commitment creates ongoing pressure to raise profits and cash flow each year, as failing to do so could force the company to reduce or suspend its dividend— a move that often triggers a sharp drop in the stock price. Because management compensation frequently includes stock options, there is a strong incentive to avoid such declines.
A company’s past record of dividend growth is often the best indicator of its future ability to sustain that trend. Another useful measure is the payout ratio, which compares dividends to earnings. A lower payout ratio generally indicates room for future dividend growth. Conversely, companies with very high dividend yields may struggle to maintain payouts during challenging periods, precisely when investors rely on that income the most. Firms with a proven history of raising dividends have demonstrated their ability not only to preserve but also to grow payouts, even during market downturns. Given this, we will take a look at some of the best dividend stocks with over 20 consecutive years of dividend growth.
Our Methodology
For this list, we screened for dividend companies that have raised their payouts for 20 consecutive years or more. From that list, we pick companies with strong balance sheets and sound financials. The stocks are ranked according to their dividend yields as of October 16.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Walmart Inc. (NYSE:WMT)
Dividend Yield as of October 16: 0.89%
Walmart Inc. (NYSE:WMT) is among the best dividend stocks that have raised their payouts for over 20 years. On October 15, DA Davidson reaffirmed its Buy rating and $117.00 price target for WMT after the retailer announced a partnership with OpenAI.
The firm pointed out that Walmart’s new collaboration with OpenAI, revealed on Tuesday, will also let customers shop at Walmart through ChatGPT using the Instant Checkout platform.
DA Davidson had earlier identified Walmart Inc. (NYSE:WMT) as a likely beneficiary of the growing “Agentic Commerce” trend, following OpenAI’s introduction of Instant Checkout for ChatGPT last week. According to the research firm, the company is well-positioned to thrive in this evolving commerce environment because of its large scale, which supports investment in new technology, and its proactive approach to adopting AI solutions.
The recent partnership reinforces DA Davidson’s belief that Walmart Inc. (NYSE:WMT) will stand out as a leader among traditional retailers in what it describes as the “Agentic Commerce race.”
Alongside its technological progress, Walmart Inc. (NYSE:WMT) has also drawn investor interest for its dividend track record, having increased its payouts for 52 straight years. The company currently offers a quarterly dividend of $0.235 per share and has a dividend yield of 0.89%, as of October 16.
14. Pentair plc (NYSE:PNR)
Dividend Yield as of October 16: 0.92%
Pentair plc (NYSE:PNR) is an American company known for its expertise in water treatment technologies. While it operates primarily from the United States, the company is incorporated in Ireland and holds its tax residency in the United Kingdom.
On October 15, JPMorgan lifted its price target for Pentair plc (NYSE:PNR) from $116 to $126 and maintained an Overweight rating as part of its Q3 earnings preview for the electrical equipment and multi-industry sector. The firm noted a slightly cautious stance toward the sector in the near term but added that current valuations appear more appealing. JPMorgan also mentioned a preference for value-oriented names that are currently underweighted going into the quarter.
Pentair plc (NYSE:PNR) also caught the attention of Citi analysts, who raised their price target to $133 and reaffirmed a Buy rating on the stock on October 9.
In addition to analyst optimism, Pentair plc (NYSE:PNR) stands out as a reliable dividend payer, having increased its dividends for 49 consecutive years. The company offers a quarterly dividend of $0.25 per share and has a dividend yield of 0.92%, as of October 16.
13. Caterpillar Inc. (NYSE:CAT)
Dividend Yield as of October 16: 1.12%
Caterpillar Inc. (NYSE:CAT) is one of the best dividend stocks with over 20 years of dividend growth. BofA Securities raised its price target for CAT from $517 to $594 on October 15 while keeping a Buy rating on the stock. The revision came after the firm’s review of the small turbine market, where it observed that expanding capacity has become difficult because of supplier limitations, especially for advanced parts such as single crystal turbine blades, which cannot be rapidly scaled.
According to BoFA, lead times for small turbines now stretch beyond two years, with prices trending higher, though not as sharply as for larger turbines. This environment strengthens Caterpillar Inc. (NYSE:CAT)’s Solar brand, which holds a leading position and a strong reputation within this market segment.
The firm also pointed out that growing demand from data centers could add meaningful value, much like Caterpillar’s presence in the oil and gas sector. The company’s exchange program enhances reliability through high uptime, while its mobile power units provide added flexibility.
BofA further noted that existing turbine capacity remains far below market demand. Reciprocating engines could help bridge some of the gap, but hyperscalers and developers may need to co-invest to alleviate these supply challenges.
Caterpillar Inc. (NYSE:CAT) also stands out as a dependable dividend payer, with 31 consecutive years of dividend increases. The company’s quarterly dividend comes in at $1.51 per share and has a dividend yield of 1.12%, as of October 16.
Caterpillar Inc. (NYSE:CAT) is a leading global producer of heavy machinery, manufacturing equipment used in construction and mining, along with diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Through its extensive dealer network, the company maintains operations across every continent.
12. Dover Corporation (NYSE:DOV)
Dividend Yield as of October 16: 1.25%
Dover Corporation (NYSE:DOV) is one of the best dividend growth stocks to invest in.
On October 15, JPMorgan raised its price target for Dover Corporation (NYSE:DOV) from $217 to $220 while maintaining an Overweight rating on the stock. The update came as part of its Q3 earnings preview for the electrical equipment and multi-industry sector. The firm noted a slightly cautious stance toward the group in the near term but said valuations now appear more appealing. JPMorgan also indicated a preference for value-oriented stocks that currently have negative market positioning going into the quarter.
Dover Corporation (NYSE:DOV) also appeals to income-focused investors thanks to its impressive dividend history. The company has increased its dividend for 69 consecutive years, making it one of the longest dividend growth streaks in the market. Currently, it offers a quarterly dividend of $0.52 per share and has a dividend yield of 1.25%, as of October 16.
Based in the US, Dover Corporation (NYSE:DOV) is a diversified industrial manufacturer that produces a wide range of equipment, components, consumables, aftermarket parts, and digital solutions.
11. Chubb Limited (NYSE:CB)
Dividend Yield as of October 16: 1.45%
Chubb Limited (NYSE:CB) is one of the best dividend stocks to invest in. On October 14, Citizens has reaffirmed its Market Outperform rating on CB and set a price target of $325. The firm maintained its optimistic view of the insurer, pointing to Chubb’s strong earnings per share growth as a major reason for its continued confidence.
Citizens also cited Chubb Limited (NYSE:CB)’s robust balance sheet and described the company as having a “superb global franchise,” both of which reinforce its positive stance. The $325 price target reflects potential upside for the stock based on the company’s solid financial performance and strong market position.
Chubb Limited (NYSE:CB) is also well-regarded by dividend investors, having raised its dividend for 32 consecutive years. The company offers a quarterly dividend of $0.97 per share and has a dividend yield of 1.45%, as of October 16.
Chubb Limited (NYSE:CB) is a leading property and casualty insurer catering to high-end clients, providing coverage for luxury homes and specialized businesses. Unlike many insurers that focus on standard policies and cost-cutting, Chubb takes a more customized approach to serving its customers.
10. Lowe’s Companies, Inc. (NYSE:LOW)
Dividend Yield as of October 16: 1.98%
Lowe’s Companies, Inc. (NYSE:LOW) is an American retailer focused on home improvement products and services. On October 9, the company announced the completion of its acquisition of Foundation Building Materials (FBM), a leading distributor of construction materials with more than 370 locations across the US and Canada.
This acquisition is expected to strengthen Lowe’s Companies, Inc. (NYSE:LOW) reach among professional customers by expanding its product selection, speeding up order fulfillment, enhancing digital capabilities, and adding a trade credit platform. It also opens the door for growth in key regions such as California, the Northeast, and the Midwest.
The FBM deal follows Lowe’s Companies, Inc. (NYSE:LOW) earlier acquisition of Artisan Design Group (ADG). Together, these purchases support Lowe’s broader strategy to build a complete interior solutions platform for homebuilders and to better position itself to benefit from trends in the housing market.
Beyond its expansion plans, Lowe’s Companies, Inc. (NYSE:LOW) is also recognized for its impressive dividend history, having raised its dividend for 60 consecutive years. The company’s quarterly dividend comes in at $1.20 per share and has a dividend yield of 1.98%, as of October 16.
9. Emerson Electric Co. (NYSE:EMR)
Dividend Yield as of October 16: 1.64%
Emerson Electric Co. (NYSE:EMR) is an American manufacturing company that provides a wide range of products and services for commercial, industrial, and consumer markets.
On October 15, JPMorgan raised its price target for Emerson Electric Co. (NYSE:EMR) from $135 to $151 while maintaining a Neutral rating as part of its Q3 earnings preview for the electrical equipment and multi-industry sector. The firm expressed a slightly cautious view on the group in the short term but noted that current valuations appear more appealing. It also mentioned a preference for value-oriented stocks with limited investor positioning heading into the quarter.
In recent years, Emerson Electric Co. (NYSE:EMR) has undergone a major transformation, becoming a more streamlined and focused company with stronger long-term growth prospects. Its operations are now concentrated in areas such as process and industrial automation, industrial software, and adjacent fields like automated testing and measurement.
Emerson Electric Co. (NYSE:EMR) also has an impressive record of rewarding shareholders, with 67 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $0.5275 per share and has a dividend yield of 1.64%, as of October 16.
8. Colgate-Palmolive Company (NYSE:CL)
Dividend Yield as of October 16: 2.66%
Colgate-Palmolive Company (NYSE:CL) is among the best dividend stocks to invest in. The stock is down by nearly 14%, which has made analysts worried about its outlook.
On October 10, JPMorgan has lowered its price target for Colgate-Palmolive Company (NYSE:CL) from $95 to $88 while keeping an Overweight rating on the stock ahead of the company’s third-quarter 2025 earnings release.
The consumer products leader is set to report its Q3 results on Friday, October 31, before the market opens. JPMorgan attributed the reduced price target to softer performance across product categories. Although Colgate-Palmolive Company (NYSE:CL) maintained its overall full-year 2025 guidance for both revenue and earnings, the company now expects organic sales growth to land at the lower end of its previously projected 2% to 4% range due to weaker category trends.
However, several positive factors have helped balance these headwinds. More favorable foreign exchange conditions have allowed management to reaffirm its outlook for low-single-digit net sales growth. In addition, while tariff-related costs have improved by $125 million, now expected to total around $75 million, these savings are largely offset by higher expenses for raw and packaging materials.
Despite these near-term pressures, Colgate-Palmolive Company (NYSE:CL) remains a reliable income stock, as the company has been growing its dividends for 62 consecutive years. The company offers a quarterly dividend of $0.52 per share for a dividend yield of 2.66%, as of October 16.
7. NextEra Energy, Inc. (NYSE:NEE)
Dividend Yield as of October 16: 2.67%
NextEra Energy, Inc. (NYSE:NEE) is an American energy company and is among the best dividend stocks to invest in.
On October 6, Evercore ISI began coverage on NextEra Energy, Inc. (NYSE:NEE), assigning it an Outperform rating and setting a price target of $92. The firm pointed out that NextEra leads the country in wind and solar energy, holding roughly 20% of the US renewable power market. It also emphasized the company’s broad strength across the entire power generation mix.
Evercore ISI expects NextEra Energy, Inc. (NYSE:NEE) to gradually expand its use of dependable, high-capacity gas and nuclear assets in the coming years. The analyst noted that the company’s scale gives it an advantage in navigating difficult renewable market conditions while potentially capturing share from smaller players.
The report also mentioned that NextEra Energy, Inc. (NYSE:NEE) could explore merger and acquisition opportunities in gas generation, positioning itself as a preferred power provider for hyperscalers in the artificial intelligence space.
Moreover, NextEra Energy, Inc. (NYSE:NEE)’s consistent dividend payments add to its appeal for investors seeking steady income. The company has raised its payouts for 29 consecutive years and currently offers a quarterly dividend of $0.5665 per share. As of October 16, the stock has a dividend yield of 2.67%.
6. The Procter & Gamble Company (NYSE:PG)
Dividend Yield as of October 16: 2.83%
The Procter & Gamble Company (NYSE:PG), a global leader in consumer goods, operates across several key segments, including Beauty, Grooming, Health Care, and Home Care.
On October 14, the company announced during its Annual Meeting of Shareholders that its Board of Directors had approved a quarterly dividend of $1.0568 per share. The Procter & Gamble Company (NYSE:PG) has maintained an impressive record of paying dividends for 135 consecutive years since its founding in 1890 and has raised its dividend for 69 straight years, underscoring its long-standing commitment to rewarding shareholders who rely on consistent income from their investments. The stock supports a dividend yield of 2.83%, as of October 16.
Despite this strong dividend history, sentiment in the sector appears cautious. On October 10, JPMorgan trimmed its price target on The Procter & Gamble Company (NYSE:PG) to $163 from $170 while maintaining a Neutral rating. The firm noted that large-cap consumer companies are expected to post another weak quarter, citing ongoing sluggish demand in the US, softer trends in Western Europe, and reduced retailer inventories as headwinds for the group.
5. Genuine Parts Company (NYSE:GPC)
Dividend Yield as of October 16: 3.08%
Genuine Parts Company (NYSE:GPC) is among the best dividend stocks with over 20 years of dividend growth.
UBS lifted its price target for GPC from $135 to $140 on October 10, while keeping a Neutral rating on the stock. The brokerage firm noted that strategic initiatives aimed at creating shareholder value have become central to Genuine Parts’ investment story. UBS expects the company to discuss its ongoing strategic review during its third-quarter earnings release on October 21, though it added that specific details might remain limited.
According to UBS, investors will likely be watching for evidence that Genuine Parts Company (NYSE:GPC) is stabilizing its market share in key categories. The firm also expects the company’s core business trends to remain steady, which aligns with overall market expectations and suggests the upcoming report may not dramatically change the broader investment outlook.
Genuine Parts Company (NYSE:GPC) is also recognized for its reliable dividend history. The company has been rewarding shareholders with growing dividends for 69 consecutive years and currently offers a quarterly dividend of $1.03 per share. The stock has a dividend yield of 3.08%, as of October 16.
Genuine Parts Company (NYSE:GPC) operates the world’s largest automotive parts network, with more than 10,800 locations globally. Over the years, it has expanded its reach by acquiring smaller businesses in both domestic and international markets to strengthen its presence and diversify its portfolio.
4. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of October 16: 3.74%
An American beverage and snack company, PepsiCo, Inc. (NASDAQ:PEP) is among the best dividend stocks with solid dividend growth.
UBS reaffirmed its Buy rating on PepsiCo, Inc. (NASDAQ:PEP) with a price target of $172.00 in a research note issued on October 13. The firm expressed confidence in the company’s ongoing and upcoming initiatives, suggesting they could strengthen performance across its portfolio even if market conditions remain stable. UBS noted that management’s top priority appears to be reviving growth in PepsiCo’s North American segment, as reflected in recent company comments.
The report also emphasized improvements in PepsiCo, Inc. (NASDAQ:PEP)’s productivity capabilities compared to earlier in the year, which are expected to drive stronger profitability. UBS believes these operational gains will support better financial outcomes in both the short and medium term, even as the company continues to reinvest in its business.
PepsiCo, Inc. (NASDAQ:PEP) remains a favorite among dividend investors, with an impressive 53-year track record of consecutive dividend growth. The company’s quarterly dividend comes in at $1.4225 per share and has a dividend yield of 3.74%, as of October 16.
3. Chevron Corporation (NYSE:CVX)
Dividend Yield as of October 16: 4.51%
Chevron Corporation (NYSE:CVX) is one of the best dividend stocks with over 20 years of dividend growth.
On October 13, UBS reaffirmed its Buy rating on CVX and kept its price target at $197.00 ahead of the company’s third-quarter 2025 earnings report. Analyst Josh Silverstein expects Chevron’s earnings per share to fall to $1.65 from $1.77, largely reflecting the impact of the Hess acquisition.
The firm does not anticipate any major operational or strategic announcements in the upcoming report, as those are likely to be shared during Chevron Corporation (NYSE:CVX)’s Analyst Day on November 12. UBS expects the event to include updates on upstream production growth, synergy realization from the Hess deal, return on capital plans, and the company’s overall capital spending outlook.
Looking further ahead, UBS highlighted several growth catalysts for Chevron Corporation (NYSE:CVX) in the latter part of the decade, including developments in Guyana, the Eastern Mediterranean, and possibly Argentina, as well as the company’s Power Venture segment.
Chevron Corporation (NYSE:CVX) also remains a favorite among income-focused investors thanks to its reliable dividend policy. The company has been growing its dividend for 38 consecutive years and offers a quarterly payout of $1.71 per share. The stock has a dividend yield of 4.51%, as of October 16.
Chevron Corporation (NYSE:CVX) is an American multinational energy firm with operations spanning oil and gas exploration, production, transportation, refining, and chemical manufacturing. Each division’s performance tends to vary depending on shifts in the broader energy cycle.
2. Target Corporation (NYSE:TGT)
Dividend Yield as of October 16: 5.07%
Target Corporation (NYSE:TGT) is one of the best dividend stocks to invest in.
On October 14, BTIG began coverage on TGT with a Neutral rating, pointing to intense competition from other major retailers. The firm set its earnings per share estimates at $7.40 for fiscal 2025 and $7.85 for fiscal 2026 for the retail company.
BTIG noted that the Target Corporation (NYSE:TGT) brand continues to stand out and remain relevant in today’s retail landscape, but cautioned that the company operates in what it described as a highly competitive environment. The firm cited strong performances from rivals such as Walmart, Costco, and Amazon as key reasons behind its neutral view on TGT.
Target Corporation (NYSE:TGT) remains appealing to dividend investors, having increased its dividend payments for 54 consecutive years. The company pays a quarterly dividend of $1.14 per share and has a dividend yield of 5.07%, as of October 16.
Target Corporation (NYSE:TGT) is a major retail chain that provides a broad selection of products, including groceries and household essentials, while focusing on delivering a more curated and elevated shopping experience.
1. Realty Income Corporation (NYSE:O)
Dividend Yield as of October 16: 5.45%
Realty Income Corporation (NYSE:O) is among the best dividend stocks with over 20 consecutive years of dividend growth.
On October 14, the company announced its 664th consecutive monthly dividend on common stock. The dividend of $0.2695 per share, equivalent to an annualized $3.234 per share, will be paid on November 14, 2025, to shareholders on record as of October 31, 2025.
Often referred to as “The Monthly Dividend Company”, Realty Income Corporation (NYSE:O) continues to pursue its mission of investing in people and properties to provide reliable monthly dividends that grow over time. Since its inception, the company has consistently declared 664 monthly dividends and is part of the S&P 500 Dividend Aristocrats index, having increased its dividend for more than 30 consecutive years. The stock has a dividend yield of 5.45%, as of October 16.
Realty Income Corporation (NYSE:O) is among the largest real estate investment trusts (REITS) globally, with a diversified portfolio that includes retail, industrial, gaming, and other sectors. Most of its properties are leased to some of the world’s most prominent companies, and its net lease model supports stable and predictable rental income.
While we acknowledge the potential of O to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than O and that has 100x upside potential, check out our report about this cheapest AI stock.
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