A Guide to Stocks with High Dividends and Growth Investments

If you're looking for stocks with high dividends and growth, you're in the right place. Companies like Realty Income (O) have been paying consistent dividends for over 50 years, making them a reliable choice for income investors.

For those seeking growth, consider stocks like Visa (V), which has consistently increased its dividend payout over the years. This trend is expected to continue, making it an attractive option for long-term investors.

Realty Income's dividend yield is currently around 4.5%, making it an attractive option for income investors.

If you're looking for stocks with high dividends, you're not alone. Many investors are drawn to these types of stocks for their potential to provide a steady income stream.

One way to find stocks with high dividends is to look at the S&P 500 Dividend Aristocrats, an index of 67 companies that have raised their payouts annually for at least 25 consecutive years.

Some of these companies have been consistently raising their dividends for decades, such as 3M, which had raised its payout for 64 consecutive years before spinning off its Solventum healthcare business.

However, it's worth noting that high dividend yields can sometimes be a sign of trouble, as seen with Walgreens Boots Alliance (WBA), which had a 10.47% forward dividend yield as of December 2024.

Here are some stocks with high dividend yields, listed by forward dividend yield from highest to lowest:

Keep in mind that these stocks may have varying levels of risk and potential for growth, so it's essential to do your own research and consider your own financial goals before investing.

The S&P 500 Dividend Aristocrats are an index of 67 companies in the S&P 500 index that have raised their payouts annually for at least 25 consecutive years.

Fastenal (FAST) was added to the Dividend Aristocrats in recognition of its quarter-century streak of annual dividend hikes.

VF Corp. (VFC) was removed from the index after a change in its dividend policy.

Kenvue (KVUE), spun off from fellow Aristocrat Johnson & Johnson (JNJ), was added to the Dividend Aristocrats.

3M's (MMM) time as a Dividend Aristocrat is set to come to an end due to its recent spin-off of the Solventum (SOLV) healthcare business.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) offers investors a way to gain exposure to every stock in the S&P 500 Dividend Aristocrats index with an expense ratio of 0.35%.

The index of Dividend Aristocrats is maintained by S&P Dow Jones Indices.

Dividend history based on company information and S&P data.

Dividend-growth streaks include the current year if the company announced a dividend hike as of December 26, 2024.

Let's take a look at some examples of companies that have consistently increased their dividends over the years. C.H. Robinson Worldwide has a 26-year streak of consecutive annual dividend increases, which is a remarkable feat.

C.H. Robinson Worldwide, a logistics company, has been increasing its dividend every year since 1998. This is a testament to its strong financial performance and commitment to returning value to its shareholders.

J.M. Smucker, a consumer staples company, has also been a consistent dividend payer, increasing its dividend for 27 years in a row. Its well-known brands, such as Folgers and Dunkin' coffee, have helped the company achieve this impressive track record.

Cardinal Health, a wholesale drug and medical device distributor, has been increasing its dividend for 28 years, making it one of the longest streaks among the Dividend Aristocrats. Its recent acquisition of Bindley Western Industries has helped the company continue to grow and increase its dividend.

Expeditors International of Washington, a logistics company, has been increasing its semiannual dividend for over a quarter-century, despite facing challenges in the transportation industry. Its commitment to its dividend has helped it maintain its place among the best dividend stocks.

Essex Property Trust, a real estate investment trust (REIT), has been increasing its dividend for over 30 years, with a 10-year compound annual growth rate of nearly 7%. Its steady and generous stream of dividend hikes has made it a favorite among income investors.

Federal Realty Investment Trust, a REIT, has the longest consecutive record of dividend increases in the REIT industry, with 57 years of uninterrupted dividend growth. Its commitment to returning value to its shareholders has earned it a place among the best dividend stocks.

Here are some examples of companies with impressive dividend growth streaks:

These companies have demonstrated their ability to consistently increase their dividends over the years, making them attractive options for income investors.

When evaluating stocks with high dividends and growth, it's essential to consider the company's financial health and stability.

A strong balance sheet with low debt-to-equity ratios can indicate a company's ability to maintain its dividend payments.

Dividend yield is a crucial metric to consider, with a higher yield often indicating a more attractive investment opportunity.

For example, Johnson & Johnson's dividend yield is 2.7%, significantly higher than the S&P 500 average.

A company's history of consistent dividend growth is also a key factor, as it suggests a commitment to returning value to shareholders.

Realty Income's 25-year history of annual dividend increases is a notable example of this commitment.

Investors should also consider the company's growth prospects, as a rapidly expanding business can lead to increased dividend payments.

The article highlights companies like Microsoft, which has increased its dividend payment by 14% annually over the past five years.

Ultimately, a balanced approach that considers both dividend yield and growth prospects is key to finding the right stocks for your investment portfolio.