The S&P 500 yields about 1.2% right now. Investors looking for income from individual stocks need to be selective, because a high yield alone tells you nothing about whether the company can keep paying it. We screened all 69 Dividend Aristocrats (companies with 25+ consecutive years of dividend increases) and dozens of other large-cap payers, then narrowed the field to seven stocks that pass a five-part test for dividend durability.
Each stock on this list has raised its dividend for at least 10 consecutive years, maintains a payout ratio (the share of earnings paid out as dividends) under 75%, has grown the dividend faster than 3% annually over the past five years, carries a market cap above $5 billion, and generates positive free cash flow (cash from operations minus capital expenditures).
How We Picked These Stocks
More than 400 US-listed companies pay a dividend. We started with the 69 S&P 500 Dividend Aristocrats and added large-cap payers with at least a decade of consecutive increases. We filtered for payout ratios under 75%, five-year dividend growth above 3%, and positive trailing-twelve-month free cash flow. We excluded REITs, MLPs, and any company that cut or froze its dividend in the past five years. Seven companies made the final list.
The List
Johnson & Johnson (NYSE:JNJ)
Why it made the list: Johnson & Johnson is one of only a handful of companies that have raised their dividend for more than 60 consecutive years, making it a Dividend King (a company with 50+ years of unbroken increases). The 2023 spin-off of Kenvue separated the consumer health brands and left JNJ focused on higher-margin pharmaceuticals and medical devices.
The bull case: The Innovative Medicine segment generates roughly 55% of revenue and is growing in the mid-single digits as newer drugs like Tremfya and Darzalex ramp up. MedTech, which includes orthopedics and surgical robotics, adds a second growth engine with less patent-cliff risk than pure pharma.
The risk: Talc litigation remains unresolved and could result in a multi-billion-dollar settlement.
Key number: In April 2026 the board approved a 3.1% raise to an annualized $5.36 per share, marking 64 consecutive years of increases, the longest active streak among large-cap pharma companies.
AbbVie (NYSE:ABBV)
Why it made the list: AbbVie has raised its dividend every year since separating from Abbott Laboratories in 2013. When you include the Abbott years, the streak stretches past 50. The stock has run up over the past year, which has pulled the yield down toward 2.7%, but the payout has still grown at a double-digit annual rate over the past five years.
The bull case: Skyrizi and Rinvoq are replacing the revenue lost from Humira's biosimilar competition faster than Wall Street expected. Combined sales of these two drugs topped $5 billion last quarter. AbbVie also owns Botox and a growing neuroscience pipeline that diversifies revenue beyond immunology.
The risk: Concentration in immunology remains high. If Skyrizi or Rinvoq face unexpected competition or safety signals, the growth thesis takes a direct hit.
Key number: The five-year dividend growth rate exceeds 7% annually, among the fastest in large-cap pharma.
Coca-Cola (NYSE:KO)
Why it made the list: Coca-Cola has raised its dividend for 64 consecutive years, most recently lifting the quarterly payout about 4% to 53 cents in February 2026. The company operates in over 200 countries and sells more than 2.2 billion servings per day. Revenue growth has been steadier than most consumer staples companies because pricing power is built into the brand.
The bull case: Organic revenue has grown mid-to-high single digits in each of the last several quarters, driven by pricing and mix. The asset-light bottling model means roughly 60% of revenue flows through as gross profit. Free cash flow generation funds the dividend comfortably even in slow economic periods.
The risk: Currency headwinds from a strong US dollar compress reported earnings. The company earns roughly two-thirds of its revenue outside the United States.
Key number: The payout ratio has stayed between 65% and 75% for the past decade, leaving a cushion even during weaker quarters.
Procter & Gamble (NYSE:PG)
Why it made the list: Procter & Gamble holds the longest dividend increase streak of any stock on this list at 70 consecutive years. The company owns brands that dominate their categories: Tide, Gillette, Pampers, Charmin, and Crest each generate billions in annual sales.
The bull case: PG has been gaining market share in 8 of its 10 largest categories globally. The company reinvests roughly $2 billion per year into productivity improvements, which has expanded operating margins by about 300 basis points (a basis point is one-hundredth of a percentage point) over the past five years.
The risk: Premium pricing is harder to push in a slowing consumer environment. If private-label alternatives gain traction, volume could stall even as prices hold.
Key number: A 3% raise in April 2026 to a $1.0885 quarterly payout marked 70 consecutive years of increases, the longest active streak in the consumer staples sector.
Home Depot (NYSE:HD)
Why it made the list: Home Depot has increased its dividend for 16 consecutive years and grown the payout at a compound annual rate above 10% over the past decade. The company is the largest home improvement retailer in the world, with over 2,300 stores in North America.
The bull case: Professional contractors account for roughly half of sales and are a stickier, higher-margin customer base than DIY buyers. The 2024 acquisition of SRS Distribution added $6.4 billion in annual revenue from specialty building materials and gave HD deeper penetration into the pro segment. An aging US housing stock (median home age now exceeds 40 years) creates a long structural tailwind for repair and remodel spending.
The risk: Housing turnover drives a meaningful portion of demand. If mortgage rates stay elevated and existing home sales remain depressed, same-store sales growth could remain flat or slightly negative.
Key number: Home Depot has grown its dividend at a 15% compound annual rate over the past 10 years, the fastest growth rate on this list.
Texas Instruments (NASDAQ:TXN)
Why it made the list: Texas Instruments has increased its dividend for 23 consecutive years and grown it at roughly 20% annually over the past decade. TXN is the world's largest maker of analog semiconductors (chips that convert real-world signals like temperature, pressure, and sound into digital data).
The bull case: Analog chips go into everything from cars to factory equipment to medical devices, and TXN holds leading market share in a fragmented industry. The company is investing $15 billion in new US fabrication capacity through its CHIPS Act grants, which will lower unit costs and expand margins once the fabs ramp production. Management has publicly committed to returning 100% of free cash flow to shareholders through dividends and buybacks.
The risk: The semiconductor cycle is real. Revenue declined in 2023 and 2024 as industrial and automotive customers worked through excess inventory. Another demand downturn would pressure near-term earnings.
Key number: TXN has grown its dividend per share from $0.72 in 2011 to over $5.60 today, a 7.8x increase in roughly 15 years.
PepsiCo (NASDAQ:PEP)
Why it made the list: PepsiCo has raised its dividend for 54 consecutive years, putting it in Dividend King territory. The 2026 increase lifted the quarterly payout to $1.48 per share, and a pullback in the stock has pushed the yield above 4%, the highest on this list, backed by roughly $8 billion in annual free cash flow.
The bull case: Unlike Coca-Cola, PepsiCo is a food and beverage company. Frito-Lay North America alone generates more operating profit than most standalone food companies. The snack business has proven more resilient to economic slowdowns than beverages because salty snacks are a low-cost indulgence that consumers rarely cut. The combination of beverages (Pepsi, Gatorade, Mountain Dew) and snacks (Doritos, Lay's, Cheetos) creates diversified cash flow.
The risk: Volume has been under pressure as consumers push back on years of price increases. Frito-Lay volumes declined in several recent quarters even as revenue held steady on pricing. If volume weakness persists, pricing power will eventually erode.
Key number: Frito-Lay North America's operating margin runs above 30%, making it one of the most profitable food businesses in the world.
Sector Overview
Dividend stocks have held up well in 2026. With the S&P 500 near 7,575 and up about 11% year to date, income names have stayed in favor as investors rotate toward companies with visible, recurring cash returns. That rotation has been driven by two forces: tariff uncertainty that punishes high-multiple growth stocks, and a Fed that has held its policy rate in a 3.50% to 3.75% range since December, keeping bond-like equity income attractive on a relative basis with the 10-year Treasury near 4.55%.
The seven stocks on this list span four sectors: healthcare (JNJ, ABBV), consumer staples (KO, PG, PEP), consumer cyclical (HD), and technology (TXN). That diversity matters. Dividend-focused portfolios often cluster in utilities, REITs, and staples, which creates hidden interest-rate sensitivity. Adding a semiconductor company and a home improvement retailer gives the portfolio earnings drivers that respond to different economic conditions. For investors who prefer fund-based exposure, we cover the top options in our best dividend ETFs guide. And for those screening on valuation first, our best value stocks list offers a complementary approach.
What to Watch
- PepsiCo's stabilization: PEP reported on July 9 with net sales up 6.4% to $24.18 billion and organic revenue up 2.4%, and it affirmed full-year guidance. Volume growth turned positive, an early sign the snack and beverage business is steadying after several soft quarters, which supports the payout that now runs $1.48 a quarter.
- Coca-Cola and Procter & Gamble earnings later this month: Coca-Cola reports around July 22 and Procter & Gamble closes out its fiscal year in late July. Pricing versus volume will reveal whether the two Dividend Kings can keep funding their raises without leaning on price alone.
- Two Fed meetings ahead: The Fed has held its policy rate in the 3.50% to 3.75% range since December, with the next decision on July 28-29 and another on September 15-16. A cut would make dividend stocks relatively less attractive versus bonds, though lower rates also tend to lift housing turnover, a direct catalyst for Home Depot.
- Texas Instruments' September raise and fab ramp: TXN usually announces its annual dividend increase in September, and its new 300mm fabrication plants in Texas and Utah are expected to begin contributing to revenue late in 2026. A raise plus rising fab output would reinforce the fastest payout growth rate on this list.
Bottom Line
These seven stocks are not the highest-yielding names on the market. They are the ones most likely to keep raising their payouts for the next decade. The average yield across the list is roughly 2.8%, but the dividend growth rate on several of these names is double digits annually. For investors building a portfolio around income that compounds over time, reliable growers beat high-yield traps every time.
Frequently Asked Questions
What is a Dividend Aristocrat?
A Dividend Aristocrat is a company in the S&P 500 that has raised its dividend every year for at least 25 consecutive years. There are currently 69 Dividend Aristocrats. A Dividend King, a stricter designation, requires 50+ consecutive years. Four stocks on this list (JNJ, KO, PG, PEP) are Dividend Kings.
Which dividend stock has the highest yield right now?
PepsiCo currently offers the highest yield on this list at roughly 4.3%. Procter & Gamble yields near 3% and AbbVie sits around 2.7%. The lowest yield belongs to Texas Instruments at approximately 1.8%, but TXN compensates with the fastest dividend growth rate on the list. Investors looking for much higher current yield may also consider option-income ETFs like MSTY, though these carry very different risk profiles.
Are dividend stocks good for retirement?
Dividend stocks can provide a reliable income stream in retirement because the payouts arrive quarterly regardless of stock price movement. Companies with 25+ years of consecutive increases have demonstrated the ability to maintain payments through recessions, market crashes, and inflation spikes. The key risk is concentration: building a retirement portfolio around a small number of dividend payers creates single-stock risk that a diversified dividend ETF can help offset.
How much do I need to invest to live off dividends?
At a 3% portfolio yield, you would need roughly $1 million invested to generate $30,000 per year in dividend income before taxes. At a 4% yield, that number drops to $750,000. These figures assume you reinvest nothing and withdraw all income. In practice, most investors reinvest dividends during their accumulation years and switch to withdrawals in retirement.
Is it better to buy dividend stocks or dividend ETFs?
Individual dividend stocks offer higher potential returns if you pick well, but they carry concentration risk. A single dividend cut from one holding can erase years of income. Dividend ETFs spread that risk across 50 to 500 companies and rebalance automatically. Most investors benefit from owning both: a core ETF position for diversification and a handful of high-conviction individual names for higher yield or faster growth.
