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.
12. John Wiley & Sons, Inc. (NYSE:WLY)
Dividend Yield as of October 2: 3.54%
John Wiley & Sons (NYSE:WLY) has been around for more than two centuries and is still a major force in publishing, especially in education and academia. While its roots are in books and journals, the company has steadily shifted toward digital content, offering online courses, study aids, and exam prep. It also owns the ‘For Dummies’ brand, a series that has turned into one of the most recognizable names in publishing.
Roughly 48% of John Wiley & Sons (NYSE:WLY)’s revenue now comes from recurring streams, a point that tends to catch investors’ attention. That steady inflow reflects the company’s push into digital subscriptions and partnerships worldwide. Its growth plan rests on several pillars: keeping recurring revenue high, strengthening ties with professional societies that rely on Wiley to publish academic journals, expanding its reach in international markets, and taking advantage of rapid growth in open-access and AI-driven publishing.
John Wiley & Sons (NYSE:WLY) has also kept up a reliable dividend record. On September 25, it announced a quarterly payout of $0.355 per share, matching the previous dividend. Wiley has now raised its dividend for 32 straight years. As of October 2, the stock’s yield stands at 3.54%.
11. Alerus Financial Corporation (NASDAQ:ALRS)
Dividend Yield as of October 2: 3.85%
Alerus Financial Corporation (NASDAQ:ALRS) breaks its business into three areas: banking, retirement and benefit services, and wealth management. Having those different revenue streams gives it some balance, since weakness in one segment can be offset by strength in another. Retirement and benefit services bring in steady fee income from account administration, while the wealth arm focuses on investment advice and planning for clients.
In recent years, Alerus Financial Corporation (NASDAQ:ALRS) has been using acquisitions to expand its footprint, moving into markets like Phoenix and Rochester. At the same time, it’s been working to sharpen its digital edge through the “One Alerus” program, which ties technology upgrades into every part of the customer experience. Management has been stressing a few big goals along the way: cutting costs where possible, growing assets under management, diversifying income streams, and boosting efficiency.
Alerus Financial Corporation (NASDAQ:ALRS) is one of the best stocks for a dividend champions list, as the company has been rewarding shareholders with growing dividends for the past 39 consecutive years. The company currently pays a quarterly dividend of $0.21 per share and has a dividend yield of 3.85%, as of October 2.
10. Essex Property Trust, Inc. (NYSE:ESS)
Dividend Yield as of October 2: 3.9%
Essex Property Trust, Inc. (NYSE:ESS) is a California-based REIT that has made its name by sticking to coastal markets where demand for housing rarely lets up. That focus has worked in its favor, with rent growth consistently coming in above the national average. The company also keeps its finances on the conservative side, which means it can steadily grow its apartment portfolio without putting its dividend at risk.
Essex Property Trust, Inc. (NYSE:ESS) doesn’t rely on one path for growth. It buys communities through joint ventures, makes preferred equity investments that throw off dependable income, and also funds new development projects. The combination has helped the REIT build cash flow year after year, giving it the room to keep raising its dividend on a consistent basis.
Essex Property Trust, Inc. (NYSE:ESS) has been growing its dividends consistently since it went public in 1994. Its quarterly dividend comes in at $2.57 per share for a dividend yield of 3.9%, as of October 2.
9. Matthews International Corporation (NASDAQ:MATW)
Dividend Yield as of October 2: 4.01%
Matthews International Corporation (NASDAQ:MATW) is an American company with a surprisingly wide reach, operating in areas that range from industrial technologies to brand solutions and memorialization. Lately, management has been focused on reshaping the portfolio for steady, long-term growth. That has meant paying closer attention to margins, tightening up costs, and working down debt after completing the SGK sale.
A few areas stand out as key to Matthews International Corporation (NASDAQ:MATW)’s strategy. In memorialization, the company is tailoring its offerings to match shifting demographic trends. In industrial technologies, it’s leaning on innovation to stay ahead of the curve. And after the SGK divestiture, Matthews is looking to capture more value from its joint ventures. Alongside those moves, the company is emphasizing disciplined cost controls, steady cash flow, and simplifying its reporting structure, particularly around its Propelis partnership.
Matthews International Corporation (NASDAQ:MATW) is popular among income investors because of its stable dividend history. The company achieved its 31st consecutive year of dividend growth in 2025, which makes it one of the best stocks for a dividend champion list. The quarterly dividend now sits at $0.25 per share for a dividend yield of 4.01%, as of October 2.
8. United Bankshares, Inc. (NASDAQ:UBSI)
Dividend Yield as of October 2: 4.04%
United Bankshares, Inc. (NASDAQ:UBSI) has grown into a sizable regional bank holding company. At its core, it still does the usual banking work, which includes making loans in commercial, real estate, and consumer markets, while also handling deposits, trust services, brokerage, and digital banking. Growth has often come through deals. Over the years, it has picked up more than thirty banks, most recently Piedmont Bancorp in early 2025 and Community Bankers Trust back in late 2021. Those acquisitions tied together its Mid-Atlantic and Southeast markets into a single network.
The bigger challenge for United Bankshares, Inc. (NASDAQ:UBSI) now is making sure those banks all run smoothly under one umbrella. A lot of its lending is tied to commercial real estate and construction, which can be fine in good times but risky when the economy slows. Management has been putting a strong focus on integrating what it has bought and keeping a close watch on the loan book, since nearly half of it is exposed to those sectors.
United Bankshares, Inc. (NASDAQ:UBSI)’s dividend history makes it an appealing option for income investors. The company has grown its dividends for 51 years in a row and currently offers a quarterly dividend of $0.37 per share. As of October 2, the stock has a dividend yield of 4.04%.
7. New Jersey Resources Corporation (NYSE:NJR)
Dividend Yield as of October 2: 4.05%
New Jersey Resources Corporation (NYSE:NJR) runs a mix of both regulated and unregulated energy businesses. Its main operation is New Jersey Natural Gas, which supplies gas to roughly 588,000 customers across some of the state’s wealthier and faster-growing counties. Alongside that, the company is involved in wholesale and retail gas marketing through its Energy Services unit, develops solar projects under Clean Energy Ventures, and owns storage and transportation assets for natural gas.
On September 10, New Jersey Resources Corporation (NYSE:NJR) announced that it is increasing its dividend by 5.6%, which will now take its quarterly dividend to $0.475 per share. Through this hike, the company achieved its 30th consecutive year of dividend growth. Moreover, NJR has never missed a dividend since 1952, which makes it a strong contender for a dividend champions list. The stock supports a dividend yield of 4.05%, as of October 2.
For the long haul, a lot of its future depends on winning favorable regulatory decisions and keeping its utility business growing. Expanding the customer base while continuing to put money into clean energy projects is a key piece of that plan. At the same time, changes in state and federal energy policy will continue to play a big role in shaping how the company performs.
6. Polaris Inc. (NYSE:PII)
Dividend Yield as of October 2: 4.28%
An American auto manufacturer, Polaris Inc. (NYSE:PII) is gaining continuous investors’ attention because of its business model and dividend. Shareholders have been collecting growing dividends consistently for the past 30 years, which is not an easy feat to achieve, especially in this industry. Currently, it offers a per-share dividend of $0.67 every quarter, with a dividend yield of 4.28%, as of October 2.
Polaris Inc. (NYSE:PII) has built its name around powersports, designing and making vehicles built for adventure. The company’s core business is off-road machines like ATVs and side-by-sides, but it also owns the Indian Motorcycle brand and has been carving out a bigger presence in the water with its marine line, which includes pontoons and recreational boats. To get its products out, Polaris relies on a huge network—more than 2,500 dealers across North America and another 1,500-plus abroad.
When it comes to strategy, the playbook is pretty clear. Polaris Inc. (NYSE:PII) puts a lot of weight on rolling out new products, holding onto its lead in core markets, making the most of its dealer network, and spreading revenue across its off-road, on-road, and marine businesses.
5. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of October 2: 4.48%
Stanley Black & Decker, Inc. (NYSE:SWK) is a household name in tools and hardware, with a history that stretches back more than a century. Its portfolio includes some of the most familiar brands in the space, like Stanley, Black+Decker, and Craftsman.
The past few years have been a bumpy ride. When the pandemic hit, demand for home improvement and DIY projects exploded, and sales took off. Riding that wave, Stanley Black & Decker, Inc. (NYSE:SWK)doubled down, taking on debt and spending nearly $2 billion on acquisitions in late 2021. But the surge didn’t last. Much of the demand had simply been pulled forward, and as conditions normalized, sales slipped back. The stock has lost more than half its value over the last five years, a sharp reversal from its pandemic-era highs.
Today, the bulk of revenue still comes from tools and outdoor products, which remain the company’s core. In 2024, sales came in at $15.4 billion, roughly flat with the prior year once you strip out the effects of acquisitions, divestitures, and currency swings.
That said, Stanley Black & Decker, Inc. (NYSE:SWK) is a Dividend King, which means that the company has been growing its payouts annually for 59 years. This is one of the longest growth streaks in the market, and was certainly not easy to achieve, considering the company’s recent performance. This shows that its balance sheet is in place to support its future payouts as well. Currently, it offers a quarterly dividend of $0.83 per share for a dividend yield of 4.48%, as recorded on October 2.
4. Target Corporation (NYSE:TGT)
Dividend Yield as of October 2: 5.09%
Target Corporation (NYSE:TGT) is one of the most famous retail corporations in the US. The company has built its reputation on giving shoppers a more upscale feel compared with the typical big-box store. Customers can find everything from clothes and home decor to everyday basics. The company has a big footprint too, with more than 1,900 locations across the US, and it pulls in over $100 billion a year in sales.
Still, it hasn’t been smooth sailing lately. With consumers cutting back and competition coming from all angles, Target Corporation (NYSE:TGT)’s growth has been under pressure. However, there are some bright spots. As malls and traditional department stores continue to fade, Target stands to pick up some of that lost traffic. On top of that, its core customer tends to be higher income, averaging close to $79,000 a year, which gives the brand a bit more cushion than some rivals.
Target Corporation (NYSE:TGT) also showed during the pandemic that it can pivot when needed. Investments in store remodels and a heavy push into digital sales gave it a big boost, with revenue climbing about 40% between 2019 and 2022.
When considering its strengths, Target Corporation (NYSE:TGT)’s dividend also stands out, which the company has been growing for 54 consecutive years. This gives the company a Dividend King status. TGT pays a quarterly dividend of $1.14 per share for a dividend yield of 5.09%, as recorded on October 2.
3. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of October 2: 5.59%
An American multinational investment management company, Franklin Resources, Inc. (NYSE:BEN) is lesser-known among dividend investors. However, the company’s dividend policy is commendable. It’s just one year away from becoming a Dividend King, which means that BEN has been rewarding shareholders with growing dividends for 49 consecutive years. Currently, it offers a per-share dividend of $0.32 every quarter for an attractive dividend yield of 5.59%, as of October 2.
What keeps Franklin Resources, Inc. (NYSE:BEN) competitive is size and variety. It sells mutual funds, ETFs, separate accounts, and more complex strategies to clients around the world. Growth hasn’t just come organically either; the company has leaned on acquisitions like Putnam and Apera Asset Management, which it’s still working to fold into the larger business. The challenge is to keep assets from shrinking when markets get rough, while also making sure new products line up with investor demand.
There’s a lot of complexity behind the scenes. Regulations vary across markets, and costs have to be kept under tight control if the company wants to stay efficient. Integrating new businesses only adds to that balancing act. Franklin Resources, Inc. (NYSE:BEN) mainly makes its money by charging management fees, so the bigger its pool of assets, the better. By the third quarter of fiscal 2025, that pool had climbed to roughly $1.61 trillion.
2. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of October 2: 6.54%
Altria Group, Inc. (NYSE:MO) is best known for owning Marlboro, along with a portfolio that includes oral tobacco products, cigars, and e-vapor devices. Beyond tobacco, the company also holds a sizable stake in Anheuser-Busch.
Cigarette use in the US, which is Altria Group, Inc. (NYSE:MO)’s core market, has been sliding for years. Even so, the company has managed to keep profits strong. It has leaned on price hikes, cut costs, and squeezed more efficiency out of its cigarette operations. Those moves have allowed the company to grow consolidated free cash flow by nearly 60% over the past decade, reaching $8.7 billion in the last twelve months.
Looking ahead, Altria Group, Inc. (NYSE:MO) is putting money into products outside of cigarettes. Its cigar segment remains stable, while newer areas like vaping and nicotine pouches are gaining traction. The on! pouch brand has been a bright spot, posting 26.5% volume growth last quarter. To broaden its reach, Altria recently teamed up with KT&G in South Korea, a deal that opens the door to new pouch products and potential investments in the energy space. It is still early to see how much this will move the needle, but it makes clear the direction the company wants to go.
When it comes to Altria Group, Inc. (NYSE:MO)’s successes, the company’s dividend history also takes the lead. In the past 56 years, the company managed to raise its payouts 60 times, which makes it one of the best stocks for a dividend champions list. Its quarterly dividend now comes in at $1.06 per share for a dividend yield of 6.54%, as of October 2.
1. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of October 2: 6.94%
Enterprise Products Partners L.P. (NYSE:EPD) runs one of the biggest energy infrastructure systems in North America. The business isn’t about drilling for oil or gas itself. Instead, it earns steady fees by moving and storing fuels and byproducts through its network of pipelines, storage hubs, and other facilities.
Enterprise Products Partners L.P. (NYSE:EPD) has roughly $6 billion worth of projects that should be finished and up and running by the end of this year, with more lined up for 2026. Once these projects kick in, they’re expected to add a dependable stream of cash. That cash matters, since it helps support the distributions that Enterprise has managed to raise every single year for the past 27 years. The firm also stands out for having one of the strongest balance sheets in the industry, giving it plenty of room to keep expanding beyond what’s already in progress.
On July 9, Enterprise Products Partners L.P. (NYSE:EPD) declared a 2% increase in its quarterly payout, which has taken its current dividend to $0.545 per share. The stock has a dividend yield of 6.94%, as of October 2.
While we acknowledge the potential of EPD 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 EPD and that has 100x upside potential, check out our report about this cheapest AI stock.
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