Over a long investment period, you might find it intriguing that dividend stocks have outperformed non-dividend paying ones by a significant margin. According to findings from Hartford Funds and Ned Davis Research, these dividend stocks have shown an average annual return of approximately 9.2%, compared to 4.3% for their non-paying counterparts over the past fifty years. Moreover, companies that consistently increased their dividends performed exceptionally well, with an average return of 10.2%.
With such attractive yields, investing in dividend-increasing stocks could prove exceptionally beneficial for you. Here are three prominent firms currently on the market, primed to consistently boost their dividends.
PepsiCo
PepsiCo, a renowned global provider of beverages and snacks, has boosted its dividends for an impressive 53 uninterrupted years. This consistent dividend growth has solidified its position among the Dividend Kings – a special group of companies that have managed to enhance their dividends for over 50 consecutive years.
Despite maintaining a solid history of dividends, PepsiCo’s stocks have seen a decrease of approximately 15% over the last year. This drop has caused its dividend yield to approach about 4%. With this yield, an investment of $1,000 would generate around $40 in yearly income.
Over the past year, I’ve noticed a dip in my PepsiCo shares, primarily due to temporary growth hurdles caused by tariffs and other factors. Yet, this giant in the industry is optimistic! They foresee their capital investments leading to an annual organic revenue growth of 4% to 6%, with earnings-per-share growth soaring in the high-single digits over the long haul. Plus, they’ve got the financial agility to snap up strategic assets when the right moment arises. Just recently, they added a healthier soda maker, Poppi, to their fold, speeding up the evolution of their portfolio towards more health-conscious choices. Exciting times ahead for us shareholders!
Chevron
Chevron (CVX) has boosted its dividends for an impressive 38 years in a row, showcasing its robust business structure across various market conditions for commodities. Notably, it outperforms other oil companies in terms of dividend expansion during the last ten years.
Chevron’s stock has dropped by more than 5% within the past year, causing its dividend yield to surpass 4.5%. This substantial payout is built on a strong, enduring base. The company’s upstream assets boast the lowest breakeven point in the industry, around $30 per barrel. Additionally, Chevron possesses a robust financial structure, with one of the lowest debt-to-equity ratios among its competitors.
The business anticipates having sufficient funds to maintain its dividend expansion due to a projected additional $9 billion in free cash flow next year at an oil price of $60 (currently around $70), without considering the effect of its recently completed acquisition of Hess. This significant transaction is expected to strengthen and prolong the company’s production and free-cash-flow growth forecast into the 2030s.
Realty Income
Realty Income Corporation boasts a robust dividend record, enhancing its monthly payment 131 times since 1994. This consistent growth in dividends has been sustained for 111 quarters and an impressive 30 consecutive years as a real estate investment trust (REIT).
Shares of Realty Income have experienced a minor decrease during the last year, causing their dividend yield to surpass 5.5%. This high return is supported by a varied real estate portfolio, which consistently produces income through long-term lease agreements that ensure a stable cash flow.
Realty Income carefully distributes a significant portion of its rental earnings as dividends, boasting one of the industry’s most robust financial structures. This financial agility empowers continuous expansion of its property portfolio. With an estimated $14 trillion worth of potential net lease properties in its primary markets, Realty Income has a wealth of possibilities for growth. This growth is expected to bolster its capacity to keep increasing its dividend.
Some of the best stocks to buy right now
Some outstanding options for dividend investments at the moment are PepsiCo, Chevron, and Realty Income. These companies boast impressive histories of increasing their dividends, currently provide higher yields, and can be purchased at relatively lower prices. This combination of factors makes them promising candidates for substantial total returns, making them excellent destinations to invest a $1,000 today.
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2025-07-21 04:15