Finding top dividend stocks to invest in is one thing. Finding companies that can pay that dividend for years, and potentially decades, to come is a whole other story.
Most investors are well aware of the distinction between most dividend stocks and dividend aristocrats. The latter group is comprised of companies that have paid out a growing dividend for more than 25 years. Among this group, we have dividend kings, which have paid increasing dividends for more than five decades straight. I’m going to highlight three such companies in this piece.
For those who believe interest rates are likely to continue to come down as the Federal Reserve and other central banks continue to cut rates, there are some great options to consider.
Without further ado, let’s dive into three dividend aristocrats that have beaten the S&P 500 in terms of total return this year (the S&P is up a little more than 13% on a year-to-date basis in 2025 at the time of writing).
Fortis (FTS)
Most readers who follow the companies I do know that Fortis (NYSE:FTS) is one of my top dividend kings I continue to pound the table on.
Shares of this Canada-based utilities company are up more than 22% on a year-to-date basis, with Fortis regularly doubling the return of the S&P 500 as growth expectations. That’s not including the company’s 3.5% dividend yield on top of its strong capital return profile.
Of course, improved growth expectations thanks to the rise of AI technology (and the power needs this new technology will require) have led to a sharp increase in future cash flow growth projections. And Fortis has been among the leading utilities companies in raising rates, with regulators in its core markets willing to accept such increases as the company makes continuous upgrades to its overall distribution network.
Over the long-term, I think one thesis most investors can get behind is that we’re going to need a lot more power, not less. For those who accept this viewpoint, Fortis would be a top way to express this trade, in my view.
Johnson & Johnson (JNJ)
Among the more defensive companies in the healthcare sector I continue to come back to as a top long-term dividend growth stock to consider is Johnson & Johnson (NYSE:JNJ). However, despite this company’s defensive profile (or perhaps because of it), JNJ stock is actually the best performer on this list of growth stocks to buy, with a 32% year-to-date return at the time of writing.
I think a lot of this performance has to do with Johnson & Johnson’s recent performance, with a number of notable earnings beats providing investors with plenty of optimism that the company’s dividend can continue to grow for a long time to come. And with a solid 2.7% dividend yield (again, with the kind of capital appreciation upside we’ve seen this year), there’s a lot to like about JNJ stock versus its debt or other forms of fixed income (such as government bonds) right now, particularly if yields continue to come down.
With a AAA credit rating, and options for yield-focused investors on both the equity and debt sides of the ledger, JNJ is a top stock I think is worth considering right now via both angles.
Altria Group (MO)
One of the most defensive stocks in the market, Altria Group (NYSE:MO) continues to be one of my top picks for dividend investors seeking dividend growth (and longevity) over the long-term.
In terms of balance sheet strength, and the ability for future dividend hikes is concerned, Altria continues to be among the top picks defensive investors may want to consider right now. The cigarette maker has continued to shift its business model away from cigarettes toward smokeless products. However, the company continues to be shunned by many institutional investors due to Altria’s primary product set, and the deaths that have resulted from the use of its products.
I can’t disagree with those who would rather search elsewhere for yield and growth. The thing is, whether we’re talking about cigarettes, alcohol makers, video game companies, social media companies, or many other “sin” sectors that benefit from addiction, viewpoints can differ among which companies are investable or not.
For those looking for a company with a stable (and growing) 6.4% dividend yield and solid capital appreciation upside (MO stock is up more than 24% on a year-to-date basis at the time of writing), this is a great dividend-paying company worth considering in my view.
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