10 Best Dividend Stocks of All Time

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In this article, we discuss 5 dividend stocks of all time. You can skip our detailed analysis of the past performance of dividend stocks, and go directly to read 5 Best Dividend Stocks of All Time

Dividend investing is all the rage with investors these days as they seek profitable options due to fears of a possible recession. According to CNBC’s CFO survey, nearly 68% of chief financial officers expect a recession during the first half of 2023 and are looking for a consistent source of income to weather the market situation. Therefore, investors poured over $3 billion into dividend-focused ETFs in June, taking the total to $43 billion in 2022 so far.

Andrew McOrmond, managing director at WallachBeth Capital, mentioned in one of his interviews that value and dividend stocks are attractive during unstable market situation. He further said that yields from dividends provide a consistent flow of income as dividend-paying companies usually have higher levels of free cash flow. Historically, dividend stocks have contributed notably to total market returns. Companies that paid dividends generated a 9.6% total annual return from 1973 to 2021, compared with an 8.2% return of the S&P 500 during the same time period.

The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Merck & Co., Inc. (NYSE:MRK) are some of the major stocks investors are turning their attention to, as these offer solid dividend growth history.

Our Methodology:

For this list, we selected stocks that have raised their dividends regularly for years and delivered long-term stability to shareholders. These stocks have stood the test of time and weathered several economic stocks. These dividend stocks are also popular among the over 900 elite money managers tracked by Insider Monkey.

Best Dividend Stocks of All Time

10. Walmart Inc. (NYSE:WMT)

Dividend Yield as of July 19: 1.73%

Walmart Inc. (NYSE:WMT) is a multinational retail company that operates a chain of hypermarkets and grocery stores in the US.

At the end of fiscal Q1 2023, Walmart Inc. (NYSE:WMT) reported $246.1 billion in total assets, up from $244.8 billion in the previous quarter. In FY21, the company generated over $24 billion in operating cash flow and returned $15.9 billion in dividends to shareholders. Walmart Inc. (NYSE:WMT) has been raising its dividends consecutively for the past 45 years. It pays a quarterly dividend of $0.56 per share, with a yield of 1.73%, as of July 19. The company used 47.8% of its net income in dividends in Q1.

In June, Morgan Stanley raised its price target on Walmart Inc. (NYSE:WMT) to $156, with an Overweight rating on the shares, highlighting the company’s stable customer base.

At the end of Q1 2022, 60 hedge funds held stakes in Walmart Inc. (NYSE:WMT), down from 63 a quarter earlier, according to Insider Monkey’s database. These hedge funds hold stakes valued at $6.56 billion. Rajiv Jain’s GQG Partners was the company’s leading shareholder in Q1, owning stakes worth roughly $2.3 billion.

In addition to The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Merck & Co., Inc. (NYSE:MRK), Walmart Inc. (NYSE:WMT) is also one of the prominent dividend stocks to consider.

9. The Kroger Co. (NYSE:KR)

Dividend Yield as of July 19: 2.17%

The Kroger Co. (NYSE:KR) is an Ohio-based retail company that operates supermarkets across the US. The company has over 2,800 stores across 35 states.

In July, UBS called The Kroger Co. (NYSE:KR) one of its top ten stock ideas for the third quarter due to elevated food inflation and the company’s improving market trends. The firm kept a Buy on the stock.

On June 23, The Kroger Co. (NYSE:KR) announced a quarterly dividend of $0.26 per share, up 24% from the previous dividend. This was the company’s 16th consecutive year of dividend growth. The company’s payout ratio is 29%, which is consistent with its 5-year average and below the consumer staples industry average of 50%. The company’s strong financial health signals future dividend growth, as it expects to generate between $2 to $2.2 billion in free cash flow in FY22. As of July 19, the stock’s dividend yield came in at 2.17%.

As per Insider Monkey’s Q1 2022 database, 45 hedge funds held investments in The Kroger Co. (NYSE:KR), worth over $5.1 billion. In the previous quarter, 41 hedge funds owned $4.1 billion worth of stakes in the company.

8. Colgate-Palmolive Company (NYSE:CL)

Dividend Yield as of July 19: 2.42%

Colgate-Palmolive Company (NYSE:CL) is a New York-based consumer products company that deals in household, healthcare, and personal care products.

In June, Evercore ISI called Colgate-Palmolive Company (NYSE:CL) one of the best consumer staples stocks for investors due to its pricing power in inflation. The firm raised its price target on the stock to $90 with an Outperform rating on the shares.

At the end of Q1 2022, Colgate-Palmolive Company (NYSE:CL) reported $877 million in cash and cash equivalents, up from $832 million in the previous quarter. The company paid $378 million in dividends during the quarter, compared with $376 million paid during the same period last year. Colgate-Palmolive Company (NYSE:CL) has been making dividend payments consecutively for the past 58 years while raising its payouts for 21 years. The company’s payout ratio stands at 75%, which is above its five-year average of 60%. Its current quarterly payout stands at $0.47 per share, with a yield of 2.42%, as of July 19.

At the end of Q1 2022, 50 hedge funds in Insider Monkey’s database owned stakes in Colgate-Palmolive Company (NYSE:CL), up from 48 in the previous quarter. The collective value of these stakes is nearly $2.6 billion. First Eagle Investment Management held the largest stake in the company in Q1, worth over $856.6 million.

7. The Procter & Gamble Company (NYSE:PG)

Dividend Yield as of July 19: 2.55%

The Procter & Gamble Company (NYSE:PG) was appreciated by Wells Fargo in June as consumer demand increased and the company’s sales momentum is strong. The firm kept an Overweight rating on the consumer goods company with a $170 price target.

In Q1 2022, The Procter & Gamble Company (NYSE:PG) spent over $2.2 billion in dividends and generated $3.2 billion in operating cash flow. The company’s adjusted free cash flow productivity stood at 75% in Q1 and the company expects it to reach 95% in FY22 with $8 billion allocated in dividend payments. On July 12, The Procter & Gamble Company (NYSE:PG) announced a quarterly dividend of $0.9133 per share, in line with its previous dividend. The company holds a 66-year track record of dividend growth. As of July 19, the stock’s dividend yield came in at 2.55%.

The Procter & Gamble Company (NYSE:PG) was a popular stock among elite funds in Q1, as 72 hedge funds in Insider Monkey’s database owned stakes in the company, up from 67 in the previous quarter. These stakes are collectively valued at over $6 billion.

6. Johnson & Johnson (NYSE:JNJ)

Dividend Yield as of July 19: 2.59%

Johnson & Johnson (NYSE:JNJ) is one of the oldest pharmaceutical industry companies. It specializes in medical devices, pharmaceuticals, and consumer goods.

In the second quarter of 2022, Johnson & Johnson (NYSE:JNJ) beat Street estimates, generating revenue of $24 billion, up 3% from the same period last year. In the past decade, the stock’s share price has tripled and sales are 50% higher than a ten-year ago period. Johnson & Johnson (NYSE:JNJ) has raised its dividend consecutively for the past 60 years, with a five-year CAGR of 5.87%. It currently pays a quarterly dividend of $1.13 per share, with a yield of 2.59%, as of July 19.

In July, Wells Fargo raised its price target on Johnson & Johnson (NYSE:JNJ) to $195 with an Overweight rating on the shares. The firm appreciated the company’s Q2 performance and believes that JNJ is well-positioned to overcome market volatility. Like JNJ, analysts and investors are also positive about The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Merck & Co., Inc. (NYSE:MRK).

As per Insider Monkey’s data, 83 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ) in Q1 2022, the same as in the previous quarter. The consolidated value of those stakes was over $7.4 billion.

Distillate Capital, an investment firm, discussed Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”

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Disclosure. None. 10 Best Dividend Stocks of All Time is originally published on Insider Monkey.