In this article, we will take a look at some of the best dividend stocks for a dividend champions list.
Dividend champions are companies that have been increasing their dividends for the past 25 years or more. Although they share this characteristic with dividend aristocrats, there are a few important differences, the most notable being that dividend champions do not have to reside in the S&P Index to qualify, unlike aristocrats. However, this contrast is quite superficial; the important feature is their enduring culture of constantly increasing dividend pay-outs to investors.
Dividend growth is one of the most attractive attributes a company can possess in the current market environment. Champions were also able to increase their dividends through more challenging times, such as the pandemic, so reaching 25 years is quite an achievement.
Dividends used to have a reputation for being boring, but lately they’ve become the go-to for younger investors, especially Gen Zers who are all about quitting the rat race and retiring early. And it’s not just the usual reliable names like Coca-Cola and Exxon Mobil anymore. Now, a lot of people are chasing dividend-paying ETFs that promise big yields, often using more complicated strategies to get there.
According to a report byBloomberg, in 2025, income-focused ETFs grabbed about one in every six dollars that flowed into equity ETFs overall. That pushed the total size of the sector to around $750 billion. Given this, we will take a look at some of the best stocks for a dividend champions list.
Our Methodology:
For this list, we looked at a group of over 150 dividend champions, which are known for raising dividends for 25 years or more. From this list, we chose companies with the highest dividend yields as of October 2 and arranged them in order from lowest to highest yield.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. The York Water Company (NASDAQ:YORW)
Dividend Yield as of October 2: 2.91%
The York Water Company (NASDAQ:YORW) is a small player in the utility space, handling water and wastewater services in Pennsylvania. Unless you live in one of the 57 municipalities it serves across four counties in the south-central part of the state, you’ve probably never heard of it. Its stock doesn’t attract much buzz either, with average daily trading volume is just over 100,000 shares, which is a drop in the bucket compared to larger utilities.
What keeps The York Water Company (NASDAQ:YORW) steady is the nature of its business. Running water lines is expensive, so once a utility is set up in an area, it usually becomes the only option around. That kind of built-in monopoly gives York a predictable cash flow and removes the usual worries about competitors stealing market share.
For investors, though, the real appeal has always been its dividend. The York Water Company (NASDAQ:YORW) has been paying one without interruption since 1816, making it the oldest continuously paying dividend stock in the US. Moreover, the company has raised its payout for 28 straight years. The quarterly dividend sits at $0.2192 per share, giving it a yield of about 2.9%, as of October 2.
14. The Southern Company (NYSE:SO)
Dividend Yield as of October 2: 3.15%
The Southern Company (NYSE:SO) runs electric and gas utilities, but its operations don’t stop there. It also provides fiber-optic and wireless communication services and is active in wholesale energy sales. Altogether, it serves more than 9 million people across the Southeast.
The Southern Company (NYSE:SO) has carved out a leading role in nuclear energy. Through its arm, Southern Nuclear, it oversees eight reactors at three different facilities. That includes Vogtle Units 3 and 4, brought online in 2023 and 2024. These projects stand out as the first commercial reactors built in the US in roughly thirty years.
Utility stocks are usually seen as steady investments, largely because energy demand is constant and regulation helps keep prices predictable while ensuring ongoing investment in infrastructure. The Southern Company (NYSE:SO) has built a solid reputation on that front, with 24 years of back-to-back dividend increases and a remarkable record of paying dividends without interruption for 78 years. The company’s quarterly dividend comes in at $0.74 per share and has a dividend yield of 3.15%, as of October 2.
13. Stepan Company (NYSE:SCL)
Dividend Yield as of October 2: 3.16%
Stepan Company (NYSE:SCL) is based in Illinois and produces specialty and intermediate chemicals used across different industries. In its most recent update, President and CEO Luis E. Rojo said the business turned in strong results, with double-digit adjusted EBITDA growth in the first half of 2025. He acknowledged that higher oleochemical costs have been a drag on surfactant margins but added that management expects to see margins improve gradually over the rest of the year.
In the second quarter, Stepan Company (NYSE:SCL) reported adjusted EBITDA of $51.4 million, an 8% increase from a year ago. Volumes were up 1% overall, lifted by a 7% gain in Polymers and a big 49% jump in the NCT product line. Net income on an adjusted basis came in at $12 million, which was 27% higher than last year. Rojo pointed to solid earnings in polymers and crop productivity and also noted that a lower tax rate helped. He said production at the company’s new Pasadena, Texas, plant is ramping up and should add to results in the back half of 2025.
Stepan Company (NYSE:SCL) also added more than 400 new customers during the quarter, according to Rojo. Crop productivity and oilfield businesses both showed double-digit growth. Looking ahead, the company remains on schedule to close the sale of its site in the Philippines later this year, while continuing efforts to trim and optimize its global footprint.
From a shareholder perspective, Stepan Company (NYSE:SCL) has one of the most consistent dividend records in the market. The company has increased its payout for 57 straight years. It pays a quarterly dividend of $0.385 per share, giving the stock a yield of about 3.16%, as of October 2.
Hedge Fund Resource Center