In our dividend challengers list, we will discuss the top 25 dividend stocks according to dividend yields.
Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income.
Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends.
According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns.
Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA’s quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market’s choppy period.
“In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends.”
As investor interest in dividend-paying stocks continues to climb, many companies have responded by steadily boosting their payouts. According to a report from Janus Henderson, global dividend distributions hit a record $1.75 trillion in 2024, marking a 6.6% increase on an underlying basis. The total headline growth stood at 5.2%, slightly tempered by a decline in special one-time dividends and the impact of a stronger US dollar. Of the 49 countries tracked in the report, 17—including key markets like the US, Canada, France, Japan, and China—achieved new highs in dividend payments. Overall, 88% of companies either raised or maintained their dividends during the year. Looking ahead, Janus Henderson expects global dividend payouts to grow by 5.0% on a headline basis in the coming year, reaching another record of $1.83 trillion. Despite ongoing currency pressures from a strong dollar, the firm projects underlying growth to edge slightly higher to about 5.1%. Given this, let’s take a look at our dividend challengers list.
Our Methodology
For this list, we looked at a group of dividend challengers, recognized for consistently increasing dividends for 5 consecutive years, but for less than 10 years. From this list, we chose companies with the highest dividend yields as of April 29 and arranged them in order from lowest to highest yield.
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25. GFL Environmental Inc. (NYSE:GFL)
Dividend Yield as of April 29: 0.12%
GFL Environmental Inc. (NYSE:GFL) is a Canadian waste management company that offers other environmental services to its consumers. The company’s operations remain in demand no matter how the economy is doing, which helps keep its revenue steady, even when households and businesses are cutting back on expenses. What sets GFL apart, though, is that while it operates in a traditionally defensive sector, it still presents strong long-term growth opportunities. Over the past several years, the company has expanded swiftly, both by acquiring other businesses and by growing on its own. The stock has surged by over 7% since the start of 2025.
In the fourth quarter of 2024, GFL Environmental Inc. (NYSE:GFL) reported revenue of $1.98 billion, which showed an 8.2% growth from the same period last year. The company’s Solid Waste revenue of $1.5 billion also grew by 6% on a YoY basis. Its cash generation also remained strong, with an adjusted operating cash flow of $605.2 million, up from $558.7 million in the prior-year period. The company’s adjusted free cash flow came in at $360 million.
On April 3, GFL Environmental Inc. (NYSE:GFL) declared a 10% hike in its quarterly dividend to $0.0154 per share. The company has raised its payouts every year since 2020, which makes it a prominent stock on our dividend challengers list. The stock has a dividend yield of 0.12%, as of April 29.
24. Curtiss-Wright Corporation (NYSE:CW)
Dividend Yield as of April 29: 0.25%
Curtiss-Wright Corporation (NYSE:CW) is a North Carolina-based company that produces specialized products, services, and solutions primarily for the aerospace and defense sectors, as well as for commercial energy, industrial, and process-related markets. Its operations are divided into three main segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. In the past 12 months, the stock has surged by over 32%.
In the fourth quarter of 2024, Curtiss-Wright Corporation (NYSE:CW) reported revenue of $824.3 million, which saw a 5% growth from the same period last year. The revenue also beat analysts’ estimates by $37.3 million. The company saw robust demand in both its Defense and Commercial Aerospace markets, which led to a record $3.7 billion in new orders. Looking ahead, management expects total sales to rise by 7% to 8% in 2025, supported by strong organic growth in the Aerospace & Defense and Commercial Nuclear segments, along with added contributions from the recent acquisition of Ultra Energy.
Curtiss-Wright Corporation (NYSE:CW)’s cash position remained strong during the quarter, with its operating cash flow coming in at $301 million, up 7% from the prior-year period. Its adjusted free cash flow of $278 million also showed a 3% growth on a YoY basis. The company’s quarterly dividend comes in at $0.21 per share for a dividend yield of 0.25%, as of April 29. With an 8-year streak of consistent dividend growth, CW is one of the best dividend stocks on our dividend challengers list.
23. Jacobs Solutions Inc. (NYSE:J)
Dividend Yield as of April 29: 1.03%
Jacobs Solutions Inc. (NYSE:J) is a Texas-based international technical professional services company. The company provides a range of services, including consulting, planning, architectural design, engineering, and infrastructure delivery, which encompasses project, program, and construction management.
In the first quarter of 2025, Jacobs Solutions Inc. (NYSE:J) reported revenue of $2.9 billion, which showed a 4.4% growth from the same period last year. The revenue surpassed analysts’ estimates by over $14 million. Although the company reported a negative net income margin in the first quarter due to mark-to-market losses tied to its investment in Amentum, its adjusted EBITDA margin improved significantly compared to the same period last year. In addition, the company notably boosted shareholder returns during the quarter by repurchasing $202 million worth of its shares.
Jacobs Solutions Inc. (NYSE:J) ended the quarter with nearly $1.3 billion available in cash and cash equivalents, up from $1.14 billion three months ago. The company’s operating cash flow for the quarter amounted to over $107.4 million. This healthy cash position has enabled the company to maintain its dividend policy smoothly. It has been rewarding its shareholders with growing dividends for the past seven consecutive years. Currently, it offers a quarterly dividend of $0.32 per share for a dividend yield of 1.03%, as of April 29.
