Dividend Champions List Ranked By Yield: Top 25
In this article, we discuss top 25 high-yielding dividend champions. You can skip our detailed analysis of dividend investing and returns of dividend stocks in the past, and go directly to read Dividend Champions List Ranked By Yield: Top 10.
Analysts recommend loading up on dividend stocks because they are an important source of return and can help investors survive market volatility smoothly. According to a report by Allspring Global, even dividend companies with lower dividend growth rates delivered dividend growth higher than the rate of inflation in the past 30 years.
Dividend stocks have exhibited strong performance relative to the broader market during previous inflationary periods. According to a report by Sterling Capital, dividend growers and initiators significantly outperformed other asset classes from October 2007 to October 2008 when inflation was above 3%. The report also mentioned that companies with strong dividend growth delivered an annual average return of 6.8% from September 2007 to September 2018, versus a 4.2% return of non-dividend paying stocks.
Other studies conducted in this regard have revealed that the appeal of dividend stocks significantly increases during periods of slow economic growth. From December 1986 to December 2021, dividend growers fell by an average of 9.7%, compared with a 23.4% decline in the Russell 1000, as reported by T. Rowe Price. Some of the best dividend stocks that have shown solid growth in their payouts over the years include Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
Photo by Austin Distel on Unsplash
Our Methodology:
Dividend champions are the companies that have grown their dividends consistently for the past 25 years. For this list, we selected high-yielding dividend stocks from the Dividend Champions list. These companies have raised their dividends for over 25 years and have yields above 3%, as of December 20.
25. The Clorox Company (NYSE:CLX)
Dividend Yield as of December 20: 3.26%
The Clorox Company (NYSE:CLX) is an American multinational company that manufactures cleaning and bleaching products. The company reported a strong cash position this year, generating $178 million in operating cash flow in the first nine months. It also had over $278 million available in cash and cash equivalents at the end of fiscal Q1 2023, up from $183 million in the previous quarter.
The Clorox Company (NYSE:CLX) currently pays a quarterly dividend of $1.18 per share and has a dividend yield of 3.26%, as of December 20. The company has raised its payouts consistently for the past 45 years, which makes it one of the best dividend stocks on our list.
In addition to Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ), analysts are also recommending The Clorox Company (NYSE:CLX) due to the company's dividend growth.
In December, Deutsche Bank raised its price target on The Clorox Company (NYSE:CLX) to $151 with a Hold rating on the shares, appreciating the company's performance this year.
At the end of September 2022, 27 hedge funds tracked by Insider Monkey owned stakes in The Clorox Company (NYSE:CLX), compared with 31 in the previous quarter. These stakes hold a consolidated value of over $493.8 million. Among these hedge funds, Renaissance Technologies was the company's leading stakeholder in Q3.
24. Kimberly-Clark Corporation (NYSE:KMB)
Dividend Yield as of December 20: 3.42%
Kimberly-Clark Corporation (NYSE:KMB) is a Texas-based multinational manufacturing company that deals in paper-based consumer products. The company currently pays a quarterly dividend of $1.16 per share with a dividend yield of 3.42%, as of December 20. It has raised its dividends consistently for the past 50 years. Moreover, the company has made regular dividend payments to shareholders for 88 years in a row, which places it as one of the best dividend stocks on our list.
In the third quarter of 2022, Kimberly-Clark Corporation (NYSE:KMB) reported an operating cash flow of $798 million, up from $782 million in the prior-year quarter. The company remained committed to its shareholder obligation, returning $392 million in dividends during the quarter.
The number of hedge funds tracked by Insider Monkey owning stakes in Kimberly-Clark Corporation (NYSE:KMB) jumped to 34 in Q3 2022, from 24 in the previous quarter. These stakes have a total value of nearly $680 million.
23. Medtronic plc (NYSE:MDT)
Dividend Yield as of December 20: 3.53%
Medtronic plc (NYSE:MDT) is an American medical device company that is headquartered in Ireland. In fiscal Q2 2023, the company posted an EPS of $1.30, which beat Street estimates by $0.02. The company's revenue for the quarter came in at nearly $7.6 billion. For the six months that ended October 28, the company's operating cash flow came in at over $2 billion and its free cash flow stood at $1.2 billion.
On December 8, Medtronic plc (NYSE:MDT) declared a quarterly dividend of $0.68 per share, which fell in line with its previous dividend. The company's dividend growth streak stands at 45 years, which places it as one of the best dividend stocks on our list. The stock's dividend yield on December 20 came in at 3.53%.
In November, Barclays maintained an Equal Weight rating on the shares, with an $85 price target, highlighting the company's sales and growth.
At the end of Q3 2022, 55 hedge funds in Insider Monkey's database owned stakes in Medtronic plc (NYSE:MDT), up from 54 in the previous quarter. The collective value of these stakes is over $2.6 billion.
Artisan Partners mentioned Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter. Here is what the firm has to say:
“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”
22. Norwood Financial Corp. (NASDAQ:NWFL)
Dividend Yield as of December 20: 3.54%
Norwood Financial Corp. (NASDAQ:NWFL) is a bank holding company that offers a wide variety of financial services to its consumers. On December 16, the company declared a 3.6% hike in its quarterly dividend to $0.29 per share. This was the company's 31st consecutive year of dividend growth. The stock's dividend yield on December 20 came in at 3.54%.
In the third quarter of 2022, Norwood Financial Corp. (NASDAQ:NWFL) reported revenue of $20.4 million, which showed a 6.7% growth from the same period last year. At the end of September, the company had $40.8 million available in cash and cash equivalents, and its total assets amounted to over $2 billion.
As of the close of Q3 2022, 4 hedge funds tracked by Insider Monkey reported owning stakes in Norwood Financial Corp. (NASDAQ:NWFL), compared with 3 in the previous quarter. These stakes have a consolidated value of over $4.7 million. Among these hedge funds, Fourthstone LLC was the company's leading stakeholder in Q3.
21. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of December 20: 3.65%
Black Hills Corporation (NYSE:BKH) is an American diversified energy company that offers electric and gas utility services to its consumers. In December, Wells Fargo raised its price target on the stock to $71 with an Equal Weight rating on the shares, highlighting the company's strong performance this year.
In Q3 2022, Black Hills Corporation (NYSE:BKH) reported revenue of $462.6 million, which saw a 21.5% growth from the same period last year. The company generated $52.2 million in operating cash flow with an operating income of over $80 million.
Black Hills Corporation (NYSE:BKH) currently pays a quarterly dividend of $0.625 per share with a dividend yield of 3.65%, as of December 20. The company is one of the best dividend stocks on our list as it has paid dividends to shareholders for 80 years and has raised its payouts for consecutive 52 years.
At the end of Q3 2022, 16 hedge funds tracked by Insider Monkey reported owning stakes in Black Hills Corporation (NYSE:BKH), compared with 19 in the previous quarter. The collective value of these stakes is over $104.6 million.
20. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of December 20: 3.67%
An American biotech company, AbbVie Inc. (NYSE:ABBV) is another one of the best dividend stocks on our list. The company has been raising its dividends consistently for the past 50 years, with a 10-year CAGR of 270%. As of December 20, the stock's dividend yield came in at 3.67%.
In the third quarter of 2022, AbbVie Inc. (NYSE:ABBV) reported an operating cash flow of $7.6 billion and its free cash flow came in at $7.4 billion. The company's dividend payout ratio stands at 41%.
Of the 895 hedge funds tracked by Insider Monkey, 71 funds reported owning stakes in AbbVie Inc. (NYSE:ABBV) in Q2 2022, compared with 75 in the preceding quarter. These stakes are collectively worth over $2.88 billion.
Baron Funds mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter. Here is what the firm has to say:
“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”
19. Entergy Corporation (NYSE:ETR)
Dividend Yield as of December 20: 3.78%
Entergy Corporation (NYSE:ETR) is an American electric services company that specializes in the production of electric power. In Q3 2022, the company reported revenue of $4.22 billion, which showed a 25.8% growth from the same period last year. As of September 30, the company had over $1 billion available in cash and cash equivalents, up 3% from the same period last year.
Entergy Corporation (NYSE:ETR) currently pays a quarterly dividend of $1.07 per share, having raised it by 6% in October. The company has paid dividends to shareholders since 1988. The stock's dividend yield came in at 3.78%, as of December 20.
At the end of Q3 2022, 31 hedge funds tracked by Insider Monkey reported owning stakes in Entergy Corporation (NYSE:ETR), up from 30 in the previous quarter. The collective value of these stakes is over $398 million. Millennium Management was the company's leading stakeholder in Q3.
18. Old Republic International Corporation (NYSE:ORI)
Dividend Yield as of December 20: 3.90%
Old Republic International Corporation (NYSE:ORI) is a Chicago-based insurance company that provides services related to property insurance to its consumers. In the third quarter of 2022, the company reported a net premium of nearly $2 billion, which beat estimates by $150 million. During the quarter, it paid $374.3 million to shareholders in dividends, which makes it one of the best dividend stocks on our list.
Old Republic International Corporation (NYSE:ORI) currently pays a quarterly dividend of $0.23 per share for a dividend yield of 3.90%, as of December 20. The company has been paying regular dividends to shareholders for the past 81 years and has raised its payouts for 42 years consistently.
As of the close of Q3 2022, 25 hedge funds tracked by Insider Monkey reported owning stakes in Old Republic International Corporation (NYSE:ORI), the same as in the previous quarter. The collective value of these stakes is nearly $160 million.
17. Community Trust Bancorp, Inc. (NASDAQ:CTBI)
Dividend Yield as of December 20: 3.90%
Community Trust Bancorp, Inc. (NASDAQ:CTBI) is an American bank holding company that serves small and mid-sized communities in Kentucky and West Virginia. The company offers a quarterly dividend of $0.44 per share, raising it by 10% in July. The company holds a 42-year streak of consistent dividend growth. The stock's dividend yield on December 20 came in at 3.90%.
In the third quarter of 2022, Community Trust Bancorp, Inc. (NASDAQ:CTBI) reported revenue of $58.2 million, up 3.2% from the same period last year. The company's net income for the quarter came in at $19.3 million.
At the end of Q3 2022, 6 hedge funds in Insider Monkey's database reported owning stakes in Community Trust Bancorp, Inc. (NASDAQ:CTBI), compared with 8 in the previous quarter. The collective value of these stakes is over $13.1 million. Renaissance Technologies owned the largest stake in the company in Q3, worth $5.8 million.
16. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of December 20: 4.14%
Northwest Natural Holding Company (NYSE:NWN) is an Oregon-based natural gas distribution company that provides services to approximately 2.5 million people in over 140 communities. In the first nine months of the year, the company's operating cash flow amounted to $166 million. At the end of September, the company had over $108.5 million in cash and cash equivalents, up from $19.5 million nine months ago.
Northwest Natural Holding Company (NYSE:NWN) holds one of the longest dividend growth streaks of 67 years. The company currently pays an annual dividend of $1.94 per share and has a dividend yield of 4.14%, as of December 20.
At the end of Q3 2022, 7 hedge funds tracked by Insider Monkey owned stakes in Northwest Natural Holding Company (NYSE:NWN), down from 10 in the previous quarter. The consolidated value of these stakes is over $13.4 million.
15. Essex Property Trust, Inc. (NYSE:ESS)
Dividend Yield as of December 20: 4.22%
Essex Property Trust, Inc. (NYSE:ESS) is an American real estate investment trust company, headquartered in California. The company mainly invests in apartment buildings. In December, UBS initiated its coverage on the stock with a $226 price target. The firm sees growth in the company's earnings in the upcoming quarters.
Essex Property Trust, Inc. (NYSE:ESS) holds a 28-year track record of consistent dividend growth. The company currently pays a quarterly dividend of $2.20 per share and has a dividend yield of 4.22%, as of December 20.
At the end of September 2022, 24 hedge funds tracked by Insider Monkey reported owning stakes in Essex Property Trust, Inc. (NYSE:ESS), worth $210.7 million collectively. Among these hedge funds, AEW Capital Management was the company’s leading stakeholder in Q3.
14. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of December 20: 4.26%
Federal Realty Investment Trust (NYSE:FRT) is an American real estate investment trust company that invests in entertainment properties. The company currently pays a quarterly dividend of $1.08 per share and has a dividend yield of 4.26%, as of December 20. It has raised its dividends for 55 years straight. The company holds the longest dividend growth track record in the REIT sector, which places it as one of the best dividend stocks on our list.
At the end of Q3 2022, 24 hedge funds tracked by Insider Monkey reported owning stakes in Federal Realty Investment Trust (NYSE:FRT), the same as in the previous quarter. The collective value of these stakes is roughly $132 million.
13. Stanley Black & Decker, Inc. (NYSE:SWK)
Dividend Yield as of December 20: 4.28%
Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturer of tools and other industrial products. The company also deals in security products. In October, Mizuho maintained a Neutral rating on the stock with an $80 price target, highlighting the company's performance in the current market situation.
Stanley Black & Decker, Inc. (NYSE:SWK), one of the best dividend stocks, has been making uninterrupted dividend payments to shareholders for the past 146 years. Moreover, the company has raised its payouts for 54 years in a row. It currently pays a quarterly dividend of $0.80 per share and has a dividend yield of 4.28%, as recorded on December 20.
At the end of Q3 2022, 26 hedge funds tracked by Insider Monkey owned stakes in Stanley Black & Decker, Inc. (NYSE:SWK), worth over $447 million collectively. Greenhaven Associates was the company’s leading stakeholder, with stakes worth roughly $100 million.
12. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Dividend Yield as of December 20: 4.38%
An American investment management company, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported a 4.7% growth in its assets under management in November to $1.34 trillion. The company's total client transfers for the first 11 months of the year came in at $11.7 billion, which shows its strong cash position.
T. Rowe Price Group, Inc. (NASDAQ:TROW) currently pays a quarterly dividend of $1.20 per share for a dividend yield of 4.38%, as of December 20. The company is one of the best dividend stocks on our list as it has raised its payouts for 36 years in a row.
At the end of Q3 2022, 30 hedge funds tracked by Insider Monkey owned stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), up from 27 in the previous quarter. The collective value of these stakes is nearly $320 million.
11. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of December 20: 4.65%
Franklin Resources, Inc. (NYSE:BEN) is an American multinational holding company. It has always remained committed to its shareholder obligation, becoming one of the top choices for investors. The company returned $773 million to shareholders in dividends and share repurchases at the end of the fiscal year 2022.
On December 13, Franklin Resources, Inc. (NYSE:BEN) raised its quarterly dividend by 3.4% to $0.30 per share. This marked the company's 43rd consecutive year of dividend growth. The stock's dividend yield came in at 4.65%, as of December 20. The company can be added to dividend portfolios alongside some of the best dividend stocks like Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
At the end of September, 25 hedge funds in Insider Monkey's database owned stakes in Franklin Resources, Inc. (NYSE:BEN), up from 24 in the previous quarter. These stakes have a collective value of nearly $126 million.
Click to continue reading and see Dividend Champions List Ranked By Yield: Top 10.
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Disclosure. None. Dividend Champions List Ranked By Yield: Top 25 is originally published on Insider Monkey.
