Investing in long-term dividend-paying stocks not only provides steady passive income but also helps build a sustainable investment portfolio over time. Stocks with a history of consistent dividend growth serve as a clear testament to their stability and growth potential. Below are two notable suggestions for investors prioritizing safety and regular returns.
1. What are dividend aristocrat stocks?
Dividend Aristocrat stocks are a class of assets favored by long-term investors for their ability to deliver stable and long-lasting income. These stocks belong to companies with a consistent history of paying regular dividends over an extended period and often increasing their dividend payouts over the years. This makes them an effective tool for generating recurring cash flow and enhancing investment value.
Dividend-paying stocks represent companies that distribute a portion of their profits to shareholders. Typically, dividends are paid quarterly, and shareholders can receive them either as cash payments or as additional shares in the company.
Beyond individual company stocks, certain ETFs (Exchange-Traded Funds) also distribute dividends to their holders. Some ETFs are even specifically designed to invest in dividend-paying companies, offering an attractive investment avenue for those seeking steady returns.
Selecting dividend stocks requires more than just analyzing numbers. Investors must comprehensively evaluate the company’s financial health, growth potential, and market position. Investing in Dividend Aristocrat stocks not only ensures stable cash flow but also protects capital value over the long term.
2. Top long-term dividend stocks for 2025
Investing in long-term dividend-paying stocks is a safe and effective choice for investors prioritizing stable passive income. Below are two top recommendations in this category, showcasing an impressive track record of dividend growth.
2.1. 3M (NYSE: MMM)
Dividend Information:
- Dividend Yield (TTM): 6.7%
- Consecutive Years of Dividend Growth: 66 years
- P/E Ratio (TTM): Not applicable
3M, short for Minnesota Mining and Manufacturing Company, is a global conglomerate based in the United States, operating across multiple sectors of manufacturing and distribution. Founded in 1902, the company offers thousands of essential products, ranging from adhesives, protective gear, and electronic components to advanced medical devices.
With a market capitalization of approximately $50 billion and a global workforce of over 92,000 employees, 3M stands as a symbol of innovation and sustainability in the industry.
The company’s stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol MMM. Although 3M’s stock price rose only 6% over the past year—lagging behind the 27% increase of the S&P 500—it remains part of the exclusive Dividend Aristocrats list, which includes companies with a minimum of 25 consecutive years of dividend growth. Remarkably, 3M has sustained dividend growth for 66 consecutive years, a milestone achieved by very few companies.
2.2. Chevron (NYSE: CVX)
Dividend Information:
- Dividend Yield (TTM): 4.1%
- Consecutive Years of Dividend Growth: 37 years
- P/E Ratio (TTM): 14
Chevron is one of the world’s largest energy corporations, focusing on the oil and gas sector. Known for its prominent brands like Texaco and Havoline, Chevron operates across the entire energy value chain, from upstream activities such as crude oil and natural gas extraction to downstream processes, including refining, transportation, and distribution of petroleum and petrochemical products.
A notable milestone in Chevron’s history was its merger with Texaco in 2001, creating a multinational energy giant with far-reaching influence. With a market capitalization of $299 billion, Chevron is a global leader in the energy sector.
The company’s stock is listed on the NYSE under the ticker symbol CVX. Over the past year, Chevron’s stock surged 39.5%, significantly outperforming the S&P 500, highlighting its strong potential and appeal to investors. Chevron has maintained 37 consecutive years of dividend growth, making it an ideal choice for investors seeking stability and long-term returns.
2.3. International Business Machines Corporation (NYSE: IBM)
Dividend Information for IBM:
- TTM Dividend Yield: 3.5%
- Consecutive Years of Dividend Growth: 29
- TTM P/E Ratio: 23
IBM, listed on the New York Stock Exchange under the ticker “IBM,” achieved impressive growth of 43% in 2023, significantly outperforming the S&P 500 index. With $61.9 billion in revenue and $7.5 billion in net profit in 2023, IBM has demonstrated strong financial stability and effective management.
A standout feature of IBM is its 29 consecutive years of dividend growth, making it an attractive choice for investors seeking stable income. Notably, IBM’s stock is included in the investment portfolios of prominent U.S. politicians such as Ro Khanna and Michael McCaul, highlighting its strong appeal in the financial market.
2.4. The Coca-Cola Company (NYSE: KO)
Dividend Information for Coca-Cola:
- TTM Dividend Yield: 3.3%
- Consecutive Years of Dividend Growth: 62
- TTM P/E Ratio: 23
Coca-Cola’s stock, traded on the NYSE under the ticker “KO,” experienced a 5.3% decline in 2023, underperforming the S&P 500. However, it remains a reliable choice for long-term investors due to its remarkable record of 62 consecutive years of dividend growth. This rare achievement underscores Coca-Cola’s stability and long-term commitment to creating value for shareholders.
Another noteworthy aspect is the involvement of Berkshire Hathaway, Warren Buffett’s investment firm, as Coca-Cola’s largest shareholder, holding a 9.07% stake. This association further reinforces investor confidence in Coca-Cola’s financial strength and long-term prospects.
With its adaptability and global market expansion, Coca-Cola continues to be one of the most sought-after Dividend Aristocrats in the stock market.
2.5. ExxonMobil (NYSE: XOM)
ExxonMobil Dividend Information:
- Dividend Yield (TTM): 3.2%
- Consecutive Years of Dividend Growth: 41 years
- P/E Ratio (TTM): 41
With a market capitalization of $480 billion, ExxonMobil ranks among the top 20 largest companies globally. The company’s stock, traded on the NYSE under the ticker “XOM,” is one of the most attractive choices in the dividend aristocrat investment portfolio.
In 2022, ExxonMobil’s stock experienced an exceptional growth rate of 54.5%, far outpacing the performance of the S&P 500 index. However, in the past 12 months, the stock has only seen a modest 3.3% increase due to a cooling global energy market.
A standout feature is that ExxonMobil has sustained dividend growth for 41 consecutive years, underscoring its strong commitment to creating long-term value for shareholders. This long-term dividend payout history, coupled with its leadership position in the energy industry, makes ExxonMobil stock a safe and promising investment choice for long-term investors seeking stable income.
ExxonMobil continues to be a symbol of stability and sustainable growth in the energy sector, especially as the transition to clean energy solutions gains momentum.
3M and Chevron are both excellent choices, with impressive dividend growth histories, making them ideal for those seeking long-term stability and passive income. However, it’s important to consider your investment strategy and personal risk tolerance before making a decision. Closely monitoring the market will help you optimize the benefits from these investments.
