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Investing for the long term is about balance. You could want your money to grow while also having a steady income. That’s where dividend stocks are helpful. They can increase in value and provide regular cash payouts.
This helps you build wealth and keep a reliable cash flow.
In the U.S. market, many companies reward their shareholders with consistent dividends. This makes them a great choice for investors seeking stability.
Through this blog, we’ll explore five standout companies known for solid dividend growth. These firms are expected to offer healthy payouts in 2025, and are widely regarded as reliable picks for long-term portfolios.
They’re part of the Morningstar Dividend Yield Focus Index, which highlights financially sound companies with sustainable dividends. They’ve also made it onto Motley Fool’s Dividend Kings of 2025, recognising their commitment to returning value to investors.
Johnson & Johnson (NYQ: JNJ):
With over 50 years of consecutive dividend increases, J&J proved its resilience through economic cycles, market downturns, and even global crises.
To put this in perspective, back in 1985, J&J announced an annual dividend of just $0.075 per share, and by 2024, that figure had grown to $4.96 per share—an impressive 66-times increase over 40 years.
What makes J&J stand out is its diverse business model. Unlike most pharmaceutical companies that rely heavily on drug patents, J&J operates across three major segments: pharmaceuticals, medical devices, and consumer health products. This diversification helps reduce risk and ensures steady cash flow, making it one of the most reliable dividend payers in the market.
In 2024, J&J reported $17 billion in free cash flow, allowing it to return over $11 billion to shareholders in dividends and buybacks. Even after spinning off its consumer health division Kenvue, the company’s core businesses continue to deliver strong revenue and profit growth.
Figure 1: Johnson & Johnson’s Dividend Yield. Source: Nasdaq
Looking ahead, J&J is expanding its pipeline in areas like cancer treatment, immunology, and surgical robotics, seemingly positioning itself for long-term success. With a dividend yield of ~3%, J&J remains a top pick for income investors looking for stability and growth in the healthcare sector.
This consistency is rooted in J&J’s diverse portfolio of healthcare products—from medicines and medical devices to everyday health items—that generates steady cash flow even in uncertain times.
Procter & Gamble (NYQ: PG):
Procter & Gamble (P&G) has a stellar history of rewarding shareholders, having raised its dividend for an impressive 68 consecutive years—a true testament to its enduring stability.
To illustrate, in 1989 the annual dividend was just $0.2232 per share, but by 2024 it had grown to $4.026 per share—an 18-times increase over the years.
With a current dividend yield of around 2.5%, for every $100 invested, you could expect roughly $2.50 in annual dividends.
Figure 2: Procter & Gamble’s Dividend Yield. Source: Nasdaq
Recognized for its long-term commitment to returning value to shareholders, P&G has earned its spot among the Dividend Kings of 2025 by The Motley Fool, further cementing its reputation as a solid, reliable dividend payer.
Coca-Cola (NYQ: KO)
If there’s one stock that screams consistency, it’s Coca-Cola (KO). The company has paid an uninterrupted dividend for more than 60 years.
Coca-Cola’s strength isn’t just in its classic soda—it’s in its massive beverage empire. From Smartwater and BodyArmor to Costa Coffee and Vitaminwater, the company continues to expand beyond traditional soft drinks, ensuring steady revenue growth even as consumer preferences shift.
In 2024, Coca-Cola reported $11 billion in free cash flow and returned $8 billion to shareholders. While it faces challenges from shifting health trends, its global presence and diversified product lineup help keep its dividend rock solid.
With a dividend yield of ~3%, Coca-Cola is a consistent choice for investors who want a steady stream of income from a globally dominant brand.
Figure 3: Coca-Cola’s Dividend Yield. Source: Nasdaq
Microsoft (NSQ: MSFT)
When people think of Microsoft (MSFT), they usually think of its massive tech dominance, not dividends. But here’s a fun fact: Microsoft has been increasing its dividend for 20 consecutive years and still has plenty of room for more growth.
Microsoft’s business model is built on recurring revenue, thanks to cloud computing (Azure), Office 365, LinkedIn, and its AI investments. That means predictable cash flow, which makes it easier to consistently pay and grow dividends over time.
In 2024, Microsoft reported $74 billion in free cash flow, an absolutely massive number. And with a payout ratio of under 30%, it has plenty of flexibility to keep increasing dividends while still investing in new growth opportunities like AI.
Its dividend yield of ~1% isn’t huge, but for those looking for both growth and income, Microsoft remains one of the most reliable long-term investments in the market.
Figure 4: Microsoft’s Dividend Yield. Source: Nasdaq
Exxon Mobil (NYQ: XOM)
In the world of energy stocks, Exxon Mobil (XOM) has been a reliable dividend payer for more than 40 years. Even with all the ups and downs of oil prices, Exxon has continued to reward its investors with steady and growing payouts.
Exxon’s strategy has been simple but effective: Keep costs low, invest in efficient production, and return cash to shareholders. In 2023, the company generated $55 billion in operating cash flow and paid out $15 billion in dividends and stock buybacks.
With oil prices always fluctuating, Exxon’s ability to adapt and optimize operations is crucial. Plus, the company is investing in carbon capture and low-carbon solutions, positioning itself for the future of energy.
Right now, Exxon has a dividend yield of ~4%, making it a solid choice for income investors who believe in the long-term resilience of energy.
Figure 5: Exxon Mobil’s Dividend Yield. Source: Nasdaq
Final Thoughts
Dividend stocks offer a way to balance growth and stability in your portfolio. Investing in companies with a strong track record of increasing payouts can provide both steady income and long-term capital appreciation.
The companies we’ve highlighted have consistently rewarded shareholders and remain solid picks for those looking to build wealth with a reliable income stream. If you’re considering adding dividend stocks to your portfolio, platforms like Vested make it easy to invest in U.S. markets seamlessly. As always, be sure to do your research and invest in line with your financial goals and risk tolerance.
Disclamer – This article draws from sources such as the Financial Times, Bloomberg,Morning Star and other reputed media houses. Please note, this blog post is intended for general educational purposes only and does not serve as an offer, recommendation, or solicitation to buy or sell any securities. It may contain forward-looking statements, and actual outcomes can vary due to numerous factors. Past performance of any security does not guarantee future results.This blog is for informational purposes only. Neither the information contained herein, nor any opinion expressed, should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment, or derivatives.The information and opinions contained in the report were considered by VF Securities, Inc.to be valid when published. Any person placing reliance on the blog does so entirely at his or her own risk, and does not accept any liability as a result.Securities markets may be subject to rapid and unexpected price movements, and past performance is not necessarily an indication of future performance. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions regarding investment in securities markets.Past performance is not a guarantee of future results
