In this article, we will take a look at some of the best dividend stocks with consistent payouts.
Over the past two years, persistently high inflation has led to increased borrowing costs, creating a difficult landscape for both businesses and consumers. Adding to this challenge is the uncertainty surrounding potential interest rate cuts by central banks, regulatory shifts under the new US administration, and ongoing geopolitical instability—all of which have contributed to a slowdown in economic activity. Against this backdrop, competition for capital has intensified, prompting companies to refine their business strategies with both short-term and long-term objectives in mind as they seek to secure essential resources amid economic uncertainty.
According to a report by S&P Global, in 2024, global dividend growth surged by 8.5%, marking a significant acceleration. This increase was particularly notable in the Asia-Pacific region, where government policies encouraged a shift from annual to semiannual dividend distributions. Meanwhile, the U.S. market experienced a surge in dividend initiations and reinstatements, driven largely by the technology, media, and telecommunications (TMT) sector.
Investors have shown a growing preference for dividend stocks, particularly in the wake of recent market turbulence, which saw a sharp sell-off that also affected AI-related equities. The Dividend Aristocrat Index has surged by nearly 1.5% since the start of 2025, compared with a 3.4% decline of the broader market, as of the close of March 21. Analysts remain positive about the outlook for dividend stocks this year. The S&P Global report highlighted that with interest rates likely to stay high at least through the first half of 2025, dividends and a well-balanced capital return strategy will continue to play a crucial role. Companies are expected to focus on these factors as they work to maintain investor confidence and draw in new shareholders.
Also read: Top 10 Stocks for Dividend Capture Strategy in March 2025
Within dividend investing, stocks with a strong history of dividend growth, backed by stable cash flows, remain a preferred choice among investors. A report by J.P. Morgan suggested that global equities are on the verge of a significant phase of dividend expansion, driven not only by a cyclical increase in payouts but also by a structural shift toward sustained dividend momentum. Over the past two decades, global dividends per share have increased at an average annual rate of 5.6%. However, JPM’s analysts now anticipate this growth rate to accelerate to 7.6% in the coming years.
A key factor behind this expected acceleration is the historically low starting point for payout ratios, which measure dividends as a proportion of earnings. In 2020, during the COVID-19 pandemic, an unprecedented number of companies reduced their dividend payments, leading to a 12% decline in global dividends—an even sharper drop than that experienced during the Global Financial Crisis. Given the uncertainty at the time, this reaction was widely viewed as a prudent decision.
Since then, equity markets have staged a strong recovery, fueled by surging global earnings, particularly in sectors such as Big Tech and, more recently, artificial intelligence. However, as dividend policies are typically guided by cautious corporate boards and management teams, dividend payouts have lagged behind earnings growth during these boom periods. As a result, payout ratios have now fallen to their lowest levels in 25 years, suggesting that companies are distributing a smaller share of their earnings compared to historical norms. Simply reverting to more typical payout levels could contribute an additional 2% annual dividend growth over the next five years, according to J.P. Morgan. This trend is already underway, with global dividend growth outpacing earnings growth in seven of the last eight quarters. Given this, we will take a look at some of the best dividend stocks with consistent histories.
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Our Methodology:
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, and Business Insider. From their latest articles, we gathered the stocks they collectively favored. These companies demonstrate robust cash flow, maintain healthy balance sheets, and have a track record of steady dividend payments. In addition, we assessed the hedge fund sentiment for each stock using Insider Monkey’s Q4 2024 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies.
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12. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 36
Realty Income Corporation (NYSE:O) is an American real estate investment trust company that invests in single-tenant commercial properties in the country. The company owns a portfolio of 15,600 properties worldwide. Nearly 80% of its holdings are leased to retailers, primarily well-known, established retail chains. Its three largest tenants include 7-Eleven, Dollar Tree, and Walgreens. In addition, grocery and convenience stores account for over 20% of its total portfolio. While its primary emphasis remains on stable, necessity-based retailers, the company has broadened its reach into various sectors, benefiting from a diverse tenant base. Realty Income’s properties are leased to businesses across 89 industries, and it has expanded its presence to seven European countries.
In the fourth quarter of 2024, Realty Income Corporation (NYSE:O) reported revenue of $1.34 billion, which showed a 24.4% growth from the same period last year. The company’s Adjusted Fund from Operations (AFFO) per share also increased by 4% to $1.05 per share, which marked its 14th consecutive year of AFFO per share growth.
Realty Income Corporation (NYSE:O) is one of the best dividend stocks as the company pays monthly dividends to shareholders. On March 12, the company declared a 0.2% hike in its monthly dividend to $0.2685 per share. This was its 130th dividend increase since its listing on the NYSE in 1994. With the latest adjustment, the monthly dividend now translates to an annualized payout of $3.222 per share, slightly up from the previous rate of $3.216 per share. The stock has a dividend yield of 5.77%, as of March 22.
11. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 44
Dover Corporation (NYSE:DOV) is an American manufacturer of industrial products, based in Illinois. The company offers a diverse range of advanced equipment and components, continuously adapting to shifts in the industrial sector amid evolving market conditions and strategic adjustments. As the company focuses on long-term expansion, investors and analysts keep a close eye on its financial performance and key strategic moves. Examining its latest earnings, initiatives, and market presence provides valuable insights into its current position and future growth potential.
In the fourth quarter of 2024, Dover Corporation (NYSE:DOV) reported revenue of $1.9 billion, reflecting a 1% increase compared to the previous year. However, GAAP earnings from continuing operations declined by 8% to $238 million, while GAAP diluted EPS from continuing operations dropped 7% to $1.72. On an adjusted basis, earnings from continuing operations remained steady at $305 million, with adjusted diluted EPS rising 1% to $2.20.
Dover Corporation (NYSE:DOV) maintained a strong cash position, ending the quarter with over $1.8 billion in cash and cash equivalents—a significant jump from the $400 million reported a year earlier. For the full year 2024, the company generated more than $1 billion in operating cash flow. Currently, Dover pays a quarterly dividend of $0.515 per share, offering a yield of 1.15% as of March 22. With a history of consistent dividend growth spanning more than 68 years, DOV is one of the best dividend stocks on our list.
10. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 46
LyondellBasell Industries N.V. (NYSE:LYB) is a Netherlands-based global chemical manufacturer that specializes in plastics, chemicals, and refining. In the fourth quarter of 2024, the company reported revenue of $9.5 billion, marking a 4.3% decline from the same period the previous year. However, it exceeded analysts’ estimates by $241.3 million. During the quarter, rising costs for NGL feedstocks and natural gas led to margin compression across most business segments, while product prices came under pressure due to weaker seasonal demand. Despite these challenges, strong export demand for North American polyethylene helped offset the seasonal slowdown in domestic volumes.
LyondellBasell Industries N.V. (NYSE:LYB) maintained a solid financial standing in fiscal year 2024, generating $3.8 billion in operating cash flow with a 90% cash conversion rate. The company remained committed to shareholder returns, distributing $1.9 billion in dividends throughout the year. In addition, it upheld its strong investment-grade balance sheet, closing the year with $8.0 billion in available liquidity, including $3.4 billion in cash and cash equivalents.
LyondellBasell Industries N.V. (NYSE:LYB) stands out as one of the most reliable dividend payers. In fiscal year 2024, the company maintained a solid financial position, generating $3.8 billion in operating cash flow with a 90% cash conversion rate. It remained committed to rewarding shareholders, distributing $1.9 billion in dividends over the year. In addition, the company preserved its strong investment-grade balance sheet, closing the year with $8.0 billion in available liquidity, including $3.4 billion in cash and cash equivalents. It currently pays a quarterly dividend of $1.34 per share and has a dividend yield of 7.49%, as of March 22. The company has been rewarding shareholders with growing dividends for the past 14 consecutive years, which makes it one of the best dividend stocks.