As a dividend growth investor, I’m interested in top dividend paying stocks who not only have paid a dividend for a long time but who also have raised it every year at a rate higher than inflation!
Dividend growth is the key!
Why? Because when a company raises its dividend, eventually the value of its share will also go up because people want the income. When a company raises it every year, then you get it… its share price eventually follows! So it’s like double dipping. You get the dividend and the dividend raise and you also get the capital gain!
Many studies out there have shown that most of the total return of the stock market comes from dividend and their impact on stocks!
That’s why I’m interested in dividend growth investing. I invest my hard-earned money every month into buying shares of top dividend paying stocks which will in return give me my share of their profit in the form of dividends. Every year, I get a raise higher than inflation and I still own my shares and my capital! This is pure passive income! Where else would you get a raise of more than 8% per year?
Here is a list of 105 of the top dividend paying stocks that are out there :
|Company||Ticker||Consecutive years of dividend raise|
|American States Water||AWR||60|
|Northwest Natural Gas||NWN||59|
|Genuine Parts Co.||GPC||58|
|Procter & Gamble Co.||PG||58|
|Johnson & Johnson||JNJ||52|
|Lancaster Colony Corp.||LANC||52|
|Hormel Foods Corp.||HRL||49|
|Tootsie Roll Industries||TR||48|
|ABM Industries Inc.||ABM||47|
|California Water Service||CWT||47|
|Federal Realty Inv. Trust||FRT||47|
|Stanley Black & Decker||SWK||47|
|Altria Group Inc.||MO||45|
|Conn. Water Service||CTWS||45|
|H.B. Fuller Company||FUL||45|
|Black Hills Corp.||BKH||44|
|National Fuel Gas||NFG||44|
|Becton Dickinson & Co.||BDX||43|
|Bowl America Class A||BWL.A||43|
|C.R. Bard Inc.||BCR||43|
|Computer Services Inc.||CSVI||43|
|Leggett & Platt Inc.||LEG||43|
|MSA Safety Inc.||MSA||43|
|PPG Industries Inc.||PPG||43|
|W.W. Grainger Inc.||GWW||43|
|Helmerich & Payne Inc.||HP||42|
|Middlesex Water Co.||MSEX||42|
|McGraw Hill Financial Inc.||MHFI||41|
|RPM International Inc.||RPM||41|
|Wal-Mart Stores Inc.||WMT||41|
|Automatic Data Proc.||ADP||40|
|Illinois Tool Works||ITW||40|
|Telephone & Data Sys.||TDS||40|
|United Bankshares Inc.||UBSI||40|
|Archer Daniels Midland||ADM||39|
|MGE Energy Inc.||MGEE||39|
|Family Dollar Stores||FDO||38|
|WGL Holdings Inc.||WGL||38|
|Piedmont Natural Gas||PNY||36|
|Community Trust Banc.||CTBI||34|
|Eaton Vance Corp.||EV||34|
|Old Republic International||ORI||33|
|Weyco Group Inc.||WEYS||33|
|Air Products & Chem.||APD||32|
|Sonoco Products Co.||SON||32|
|Brown-Forman Class B||BF-B||31|
|McCormick & Co.||MKC||29|
|Eagle Financial Services||EFSI||28|
|Mercury General Corp.||MCY||28|
|Tompkins Financial Corp.||TMP||28|
|Universal Health Realty Trust||UHT||28|
|1st Source Corp.||SRCE||27|
|T. Rowe Price Group||TROW||27|
|First Financial Corp.||THFF||26|
|National Retail Properties||NNN||25|
Not all of these top dividend paying stocks are great and I wouldn’t want to hold them all in my portfolio, but when a company has been able to not only pay but also raise its dividend every year for more than 25 years then it must do something right!
Dividends payments and dividend raise are the first proof that a company is making a profit. If every quarter it must pay a dividend to every shareholders out there, than it must have money to do it! Right?!
There are also other metrics to verify to make sure that the dividend is safe like the payout ratio, the earnings and revenues growth, the financial health of the company etc… If you’re interested in dividend growth investing, visit my getting started page.
Most people out there think that investing in the stock market is speculation. They think that you must buy low and sell high to make a profit. I thought that myself and spent years reading about technical analysis and testing my skills with fake accounts. Dividend growth investing has been a revelation to me. A share is not a lottery ticket, it’s not a property to flip, it’s part-ownership of a real company. I wouldn’t invest in a lousy company losing money every quarter if I had to live off the income it would provide me. Why would I buy stocks of such a company?
With dividend growth investing, you focus on fundamentals, you focus on companies who have proven to the world that they are able to consistently make a profit and grow it every year. That’s the kind of company I want to invest in!
If you want to check some other great lists, have a look at my Best resources for dividend growth investors page.
If you’d like to get more metrics for these companies, visit David’s Fish website. The data of this post comes from his great work!
Full disclosure : I hold some of these stocks in my portfolio
Image courtesy of Pakorn / FreeDigitalPhotos.net