In this post, we will go over the highest dividend-paying stocks among US Dividend Aristocrats stocks. The S&P 500 Dividend aristocrat list includes businesses that have proven themselves as the best dividend-paying stocks in the US. These stocks have at least a 25 years track record of paying and increasing their dividends. They are a solid choice to counter the impact of inflation and protect your portfolio during turbulent times. On top of the list, we have IBM, Exxon, Realty income, Leggett & Platt, and Chevron. For each stock, we will provide historical performance and growth indicators.
At the end of this post, you will access the complete list of the 30 highest dividend-paying stocks.
Why invest in US dividend aristocrats stocks?
If you are asking yourself, what is the typical profile of a dividend aristocrat stock? I have listed some common characteristics below:
Dividend aristocrats tend to dominate their industry
• The vast majority are companies that are well established in their sector. They manage to generate significant profits thanks to their comfortable position against the competition. They also sometimes operate in regulated markets such as electric utilities with almost no competition;
Safe heaven during turbulent times
• “Dividend aristocrats” are sometimes considered by the financial market as safe havens in the event of a market correction or decline. Indeed, dividend aristocrats are generally less volatile than the market, and there are less targeted by speculators;
Strong financial statements
• “Dividend aristocrats” will tend to have a better financial situation in terms of liquidity than the rest of the market. Their levels of liquidity or debt are generally better than the rest of the market;
Limited growth but there are exceptions
• In general, dividend aristocrats are mature businesses. That is, the growth potential is quite limited. However, some companies can pay dividends and invest in their growth. Usually, the dividend payout ratio is a good indicator. If the rate is low, it means the business is saving some money to grow. Business with high dividend pay out ratio have no financial resources left to grow.
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Dividend yield and Consecutive years of dividend growth
| Ticker and name | Div yld | Yrs Div Growth |
| IBM -International Business Machines | 5,3% | 26 |
| XOM -Exxon Mobil | 4,6% | 39 |
| O -Realty Income | 4,4% | 26 |
| LEG -Leggett & Platt | 4,4% | 50 |
| CVX -Chevron | 4,3% | 35 |
| WBA -Walgreens Boots Alliance | 4,1% | 46 |
| MMM -3M Co. | 4,0% | 64 |
Growth indicators – Highest dividend paying stocks US
Revenue and dividend growth are important indicators. Dividend growth is 1- a sign of a company’s good financial health and 2- an excellent way for shareholders to hedge against the risks of inflation. Revenue growth is an indicator that the company continues to grow its operations and create value.
| Ticker | 5yrs Div Growth | 5yrs Rev Growth |
| IBM | 122.73 | -28.24 |
| XOM | 17.11 | 26.34 |
| O | 22.81 | 61.40 |
| LEG | 26.98 | 9.27 |
| CVX | 23.78 | 41.93 |
| WBA | 28.77 | 12.92 |
| MMM | 33.33 | 17.42 |
Historical performance – Highest dividend paying stocks US
| Ticker | 1yr Perf | 3yrs Perf | Beta |
| IBM | 1.11 | -10.98 | 0,47 |
| XOM | 39.40 | -4.43 | 0,73 |
| O | 5.34 | -4.48 | 0,62 |
| LEG | -16.15 | -20.49 | 1,01 |
| CVX | 35.74 | 8.50 | 0,64 |
| WBA | -5.79 | -31.26 | 0,76 |
| MMM | -17.95 | -29.27 | 0,52 |
1-International Business Machines (IBM)
IBM is a global information technology company that provides integrated enterprise solutions for software, hardware, and services. The company has five business segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing.
IBM sees the hybrid cloud as its biggest opportunity to return to growth in the future. IBM plans to accelerate customer adoption of hybrid cloud and AI.
2-Exxon Mobil Corp (XOM)
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and around the world.
XOM has recorded great financial results lately and seemed set to create more value and growth for its shareholders. The company is generating growing cash flows which will allow maintaining its dividend payments. The primary risk remains pressure from climate militants.
3-Realty Income Corp.
Realty income is a retail-focused real estate investment trust that has paid and increased its dividends in the past 26 years. The company pays a monthly dividend.
50% of Realty income corp comes from quality tenants. The company has successfully reduced its dependence on restaurants, favoring convenience stores and grocery stores.
4- Leggett & Platt, Inc. (LEG)
Leggett & Platt designs and manufactures a wide range of products including bedding components, machinery for the bedding industry, steel wire, adjustable beds, carpet padding and seat support systems from vehicle.
Thanks to its diversified products offering, LEG has a definite competitive advantage. Add to this its diversified geographic presence. The company ensures its growth through both organic means and acquisitions.
LEG is a dividend King with 50 years of historical dividend payments and increases.
5- Chevron Corp (CVX)
Chevron Corporation, through its subsidiaries, engages in integrated energy, chemical and petroleum operations worldwide.
Chevron is one of the highest-rated oil producers with a rating of AA-. It has a 35 years track record of increasing its dividends. CVX revenues grew by 41% over the past five years.
Top 30 Highest dividend paying stocks US (Dividend Aristocrats)
| Name | Div Yld | Yrs Div Growth |
| IBM -International Business Machines | 5,3% | 26 |
| XOM -Exxon Mobil | 4,6% | 39 |
| O -Realty Income | 4,4% | 26 |
| LEG -Leggett & Platt | 4,4% | 50 |
| CVX -Chevron Corp. | 4,3% | 35 |
| WBA -Walgreens Boots Alliance | 4,1% | 46 |
| MMM -3M Co. | 4,0% | 64 |
| AMCR -Amcor Plc | 4,0% | 1 |
| ABBV -Abbvie Inc | 3,9% | 50 |
| BEN -Franklin Resources, Inc. | 3,8% | 42 |
| ED -Consolidated Edison, Inc. | 3,7% | 48 |
| FRT -Federal Realty Investment Trust. | 3,6% | 54 |
| CAH -Cardinal Health | 3,6% | 34 |
| PBCT -People`s United Financial | 3,5% | 29 |
| KMB -Kimberly-Clark | 3,5% | 50 |
| VFC -VF Corp. | 3,4% | 49 |
| TROW -T. Rowe Price Group | 3,3% | 36 |
| CLX -Clorox | 3,1% | 44 |
| GPC -Genuine Parts | 2,8% | 66 |
| KO -Coca-Cola Co | 2,8% | 60 |
| PEP -PepsiCo Inc | 2,7% | 50 |
| APD -Air Products & Chemicals | 2,7% | 40 |
| ESS -Essex Property Trust | 2,7% | 27 |
| JNJ -Johnson & Johnson | 2,6% | 59 |
| ATO -Atmos Energy | 2,6% | 38 |
| AFL -Aflac Inc. | 2,5% | 40 |
| MDT -Medtronic Plc | 2,5% | 44 |
| CAT -Caterpillar Inc. | 2,3% | 28 |
| NEE -NextEra Energy | 2,3% | 27 |
| CL -Colgate-Palmolive | 2,3% | 59 |
| ITW -Illinois Tool Works | 2,3% | 58 |
To be in the S&P 500, you must first be a US company. If you go to the NYSE and the NASDAQ you will find that many of the strongest stocks paying the highest dividends are not US companies. Very few S&P 500 companies qualify for this list because their dividends are so low. Some of the qualifying strong stocks are from the UK, Australia, Brazil, Canada, China, etc. You can see this list starting on page 76 of the American High Dividend Handbook.
I agree with you. For instance, the dividend yield paid by Canada’s top five banks is typically from 3% to 5%, which is 1% to 2% higher than most U.S. banks. Not sure why this is the case.