4 Stocks With +3% Yields and 50+ Years of Dividend Increases

When it comes to dividend stocks, several important metrics must be considered in determining the best option. Often, the most talked-about is a company’s dividend yield, which shows how much the company pays out in dividends in relation to its market value. It not only provides a measure of dividend-based return but also allows investors to easily compare dividend payouts of different stocks.

Another important factor is a stock’s consistency in increasing its dividend. Long-term patterns of increasing dividends each year demonstrate a firm’s commitment to returning more capital to shareholders. It also signals that a company can remain resilient during different economic environments and doesn’t need to stop raising dividends in bad times.

Below are four stocks with strong dividend yields north of 3%, providing a substantial dividend return. They also have some of the longest track records when it comes to increasing dividends every year, having each done so for at least 50 years in a row.

Kimberly-Clark: Above Sector Dividend Yield With 53 Years of Increases

First up is Kimberly-Clark (NYSE: KMB). The company raised its quarterly dividend in late Jan. 2025 by 3.3%, marking the 53rd straight year that the company boosted its dividend.

Based on the stock’s Apr. 21 closing price, its indicated dividend yield is approximately 3.6%.

This is much higher than the 1.3% yield of the S&P 500 Index. Additionally, it also significantly exceeds the yield of an ETF commonly used as a barometer for its sector. 

The Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP), which tracks S&P 500 companies in the consumer staples sector, has a dividend yield of around 2.5%.

Kimberly-Clark’s ability to offer a higher yield than both the broader market and its sector benchmark underscores its appeal to income-focused investors.

Combined with its multi-decade track record of dividend growth, the stock continues to stand out as a reliable option in defensive portfolios.

Target: Hits the Mark With Large, Growing, & Sustainable Dividend

Next up is Target (NYSE: TGT). The company raised its dividend by 1.8% to $1.12 per share in Jun. 2024, putting it on track for 53 years of dividend increases. As of the Apr. 21 close, the stock has a very high indicated dividend yield of nearly 4.8%.

Not only has Target consistently increased its dividend, but it has also done so quickly and sustainably over the past decade. The company’s annual dividend per share (DPS) has increased by around 133% since its fiscal 2015 payout of $1.90.

The company has also kept its payout ratio below 50% in 10 out of those 11 years. The payout ratio measures the percentage of a company’s earnings that it pays out in dividends. Payout ratios lower than 50% are generally considered sustainable; however, this can vary significantly by industry.

The average last 12 months payout ratio of stocks in XLP is around 58%. Payout ratios below 50% often indicate that a company isn’t overextending itself financially to keep paying a dividend. It also means that the company has a strong ability to continue growing its dividend responsibly.

Hormel Foods: Bringing Home the Dividend Bacon

Hormel Foods (NYSE: HRL) boosted its annual dividend by 3% to $1.16 in Nov. 2024, the 59th consecutive year that the company has done so.

With this new annual dividend rate, the company will have nearly tripled its DPS since fiscal 2014, when the firm’s annual DPS was just $0.40. Using closing data on Apr. 21, Hormel stock has an indicated dividend yield of approximately 3.8%.

However, the company’s last 12-month payout ratio is a bit concerning, sitting at around 82%. This suggests that the company may not be able to increase its dividend at a brisk pace going forward. Investors would love to see a recovery in the firm’s margins to make this happen.

Hormel’s adjusted net income margin has fallen nearly 300 basis points since 2018 to just over 7%. The company reiterated its commitment to dividend growth at its latest earnings call.

If margin recovery materializes as management expects, it could re-energize Hormel’s capacity to continue rewarding shareholders.

Genuine Parts: Nearing 70 Years of Dividend Increases

Last up is Genuine Parts (NYSE: GPC), the only stock on this list that is not in the consumer staples sector.

The consumer discretionary stock announced a 3% increase to its dividend back in February. Its annual dividend rate for 2025 will be $4.12.

Incredibly, 2025 is set to be the 69th year in a row that Genuine Parts has increased its annual dividend.

Based on the Apr. 21 close, the stock has an indicated dividend yield of just under 3.7%.

That kind of consistency, especially outside the traditionally defensive sectors, highlights Genuine Parts as a rare breed in the dividend space. Its long-term performance and shareholder returns make it a compelling option for income-focused investors, even within the cyclical consumer discretionary sector.

Overall, these three stocks are among the most impressive in the market when it comes to having long-term track records of continual dividend increases.

Their over 3% yields provide a strong level of dividend income compared to their market values.

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