3 Dividend Stocks with 50+ Years of Dividend Growth

Investors seeking reliable passive income can consider investing in stocks of leading dividend-paying companies. Thankfully, numerous firms have a track record of consistently distributing and increasing their dividends for decades. This makes them a compelling choice for passive income investors, as it shows company leadership’s commitment to enhancing shareholders’ returns in all market conditions.

However, here I’ll focus on stocks that have uninterruptedly paid and increased dividends for at least 50 years, earning them the title of Dividend Kings.

Among the notable contenders, Emerson Electric Company EMR, Coca-Cola KO, and Abbott ABT all stand out for the durability of their dividends. These companies have been increasing their dividends for over 50 years. Let’s examine the factors to understand why these could be great dividend stocks to buy and hold for passive income.

1. Emerson Electric 

Emerson Electric EMR stock sports an impressive track record of 67 years of consistent dividend growth. This stellar dividend growth history makes it a compelling choice for investors seeking a growing passive income stream. Emerson is a global technology and software company focusing on automation and offering engineering services across diverse sectors.

Emerson’s stellar dividend distribution history shows its ability to grow earnings in all market conditions and enhance shareholders’ returns. Moreover, its future payouts appear to be well-covered, considering its pivot towards automation through its portfolio transformation efforts, which included the acquisition of NI and the divestiture of Copeland.

Through its portfolio transformation efforts, Emerson is focusing on high-growth and high-margin markets. Moreover, its shift towards automation positions it well to capitalize on sectors and secular trends with promising growth prospects, such as digital transformation and energy security.

A peek into its financial health reveals that the company’s order book is growing. Moreover, it had a solid backlog of $6.6 billion at the end of the first quarter of the current fiscal year. The company's expanding order book and multi-billion dollar backlog suggest that it could continue to deliver healthy growth in the upcoming years.

EMR stock offers a dependable dividend yield of 1.90%. Moreover, its dividend payment history suggests that the company could continue to enhance its shareholders’ value through higher dividend payouts. 

Out of the 20 analysts covering EMR, 15 have a “strong buy” recommendation, one analyst recommends a “moderate buy,” and four analysts suggest a "hold.” 

The average price target for Emerson Electric is $121.95, which implies about 10.3% upside potential from current levels.

2. Coca-Cola

Non-alcoholic beverage giant Coca-Cola Company (KO) is another name that has grown its dividends for over 50 years. To be precise, Coke has increased its dividend for 62 consecutive years. In February 2024, Coca-Cola increased its quarterly dividend by approximately 5.4%. This shows the company’s ability to grow its earnings regardless of economic situations and return higher cash. 

It’s worth noting that Coca-Cola has paid $8 billion in dividends in 2023. Moreover, it has returned $84.7 billion in dividends since Jan. 1, 2010.

The company’s portfolio of enduring brands, solid supply chain, and global footprint all position it well to generate strong organic revenue and gain market share. Coca-Cola expects to grow its organic revenues by 4-6% annually in the long term. Moreover, its currency-neutral EPS is projected to grow by 7-9%. This suggests the company will likely increase its dividend at a low to mid-single-digit rate. 

Currently, Coca-Cola stock offers a dividend yield of about 3%. 

On Wall Street, 12 out of 17 analysts have rated KO stock a “Strong Buy.” 

These analysts have a 12-month average target price of $65.57, which is about 6% higher than current levels.

3. Abbott Labs

Shares of the global healthcare company Abbott Laboratories (ABT) are another attractive stock for income investors. Thanks to its diversified business model and broad product portfolio, Abbott consistently generates solid earnings and cash flows that have enabled it to raise its dividends consistently for decades.

Management increased its quarterly dividend by 7.8% in December 2023. Including this hike, Abbott has now raised its dividend for 52 consecutive years.

The company’s accelerated investments in growth areas, solid research and development pipeline, and its agreement to commercialize several biosimilars in emerging markets all bode well for growth. Moreover, recent approvals for new products in Abbott’s Diagnostics division signal further growth opportunities.

Additionally, the company’s pediatric nutrition segment continues to strengthen, gaining market share in the U.S. infant formula market and exhibiting growth internationally across its portfolio of infant formula, toddler, and adult nutrition brands. 

Abbott stock offers a dividend yield of 1.97%. Moreover, 13 out of 19 analysts have rated ABT stock a “Strong Buy.” 

These analysts have a 12-month average target price of $127.12, which is about 18.7% higher than current levels.

On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.