Key Points
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Many retirees like dividend stocks in their portfolios as an additional source of quarterly or monthly income.
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Dividend Aristocrats are S&P 500 stocks that have increased their dividends every year for at least 25 years.
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Many of these stocks are household names that have stood the test of time.
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Retirement is less about how big your pile of money looked on your last day at work and more about how reliably that pile can keep replacing your paycheck. A portfolio of rock-solid dividend stocks will snowball into a savings pile you can control. These stocks give you dividend growth, and bigger amounts of cash will hit your account after each quarter/month, depending on the distribution frequency.
Over time, those checks often grow faster than Social Security’s cost-of-living adjustments, which means your purchasing power can actually improve as you age. That combination of steady income, built-in raises, and the peace of mind that comes from owning businesses people cannot live without is what makes dividend stocks the quiet heroes of a worry-free retirement.
The following 20 stocks have good dividend yields. All of them are Dividend Aristocrats, meaning they have had over 25 consecutive years of dividend hikes. Some of them are going through a period of decline, but they have what it takes to make it out of the storm and keep thriving.
20. Air Products and Chemicals Inc. (APD)
This company offers atmospheric gases and equipment. The stock has a dividend yield of 2.69% and a payout ratio of 51.62%. APD has an impressive 50 years of dividend increases.
19. C.H. Robinson Worldwide Inc. (CHRW)
CHRW provides freight and supply chain services. The stock has a dividend yield of 1.45% and a payout ratio of 35.74%. The company has 28 years of dividend increases under its belt.
18. McCormick & Co. Inc. (MKC)
The famous spice manufacturer boasts 39 years of dividend increases. The stock offers a dividend yield of 2.85% and a payout ratio of 54.43%.
17. International Business Machines Corp. (IBM)
IBM has a dividend yield of 2.22% and a payout ratio of 51.32%. The historic computer company has 30 consecutive years of dividend increases.
16. Sysco Corp. (SYY)
Sysco boasts 57 years of consecutive dividend increases. Its stock has a dividend yield of 2.84% and a payout ratio of 42.84%.
15. Procter & Gamble Co. (PG)
The famed household goods company offers a dividend yield of 2.93% and a payout ratio of 57.50%. PG is a king among Dividend Aristocrats, with 69 years of dividend increases.
14. Coca-Cola Co. (KO)
The soft drink giant is another top-end Dividend Aristocrat, delivering 64 consecutive years of dividend increases. KO has a dividend yield of 2.86%, with a payout ratio of 59.01%.
13. Johnson & Johnson (JNJ)
Another household name, Johnson & Johnson is a dividend winner. JNJ has a dividend yield of 2.43% and a payout ratio of 41.91%. It has increased dividend payout for 64 consecutive years.
12. NextEra Energy Inc. (NEE)
This clean energy company has 31 years of dividend increases. NEE has a dividend yield of 2.78% and a payout ratio of 51.71%.
11. Medtronic PLC (MDT)
Medtronic manufactures device-based medical therapies to healthcare systems, including cardiovascular equipment. MDT has a dividend yield of 2.88% and a payout ratio of 43.18%. The company has 49 years of annual dividend increases.
10. Genuine Parts Co. (GPC)
Can you believe a company can boast 70 years of dividend increases? Genuine Parts Co., an automotive and industrial supplier, can. GPC has a dividend yield of 3.08%, with a payout ratio of 44.94%.
9. Consolidated Edison Inc. (ED)
Consolidated Edison has a dividend yield of 3.35% and a payout ratio of 53.26%. The New York City energy company has 52 years of dividend increases.
8. AbbVie Inc. (ABBV)
This biopharmaceutical giant has a dividend yield of 3.12% and a payout ratio of 43.54%. The stock has provided 54 years of dividend increases.
7. Exxon Mobil Corp. (XOM)
This energy giant currently offers a dividend yield of 3.16%, with a payout ratio of 47.62%. XOM has given dividend increases for 43 years.
6. PepsiCo Inc. (PEP)
The other beverage behemoth on our list is also a dividend winner. PepsiCo has seen 54 years of dividend increase and currently has a dividend yield of 3.90%. The stock’s payout ratio is 63.08%.
5. Kimberly-Clark Corp. (KMB)
Consumer brands giant Kimberly-Clark has a dividend yield of 5.08% and a payout ratio of 84.60%. KMB has seen 54 years of dividend increases.
4. J.M. Smucker Co. (SJM)
SJM has a dividend yield of 4.22% and a payout ratio of 41.19%. The packaged foods company has 28 years of dividend increases.
3. Chevron Corp. (CVX)
Chevron has 38 years of dividend increases and a current yield of 4.09%. CVX offers a payout ratio of 69.40%.
2. Eversource Energy (ES)
This New England utility holding company offers a dividend yield of 4.30% and a payout ratio of 57.52%. ES increased it dividend for the last 27 years.
1. Amcor PLC (AMCR)
An international consumer packaging and dispensing company, Amcor has a dividend yield of 5.90% and a payout ratio of 58.63%. AMCR has increased its dividend for the last six years, but many analysts still consider it a Dividend Aristocrat because of its 2019 acquisition of Bemis Co., which had a long history of annual dividend raises.
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