Dividend Growth Investor: Dividend Champions List for 2025
Of the thousands of companies trading today, just 145 companies in the United States have a history of being a dividend champion. Those are companies that have increased a dividend payout for 25 consecutive years.
While past performance is no indication of future performance, a 25-year streak is tough to ignore. That covers extreme events like the pandemic and housing market meltdown. They’re businesses that can likely be held indefinitely, deferring capital gains taxes along the way.
Overall, six companies that were dividend champions at the end of 2023 failed to make the cut in 2024. One company became acquired, one didn’t raise its payout, and four cut their dividends.
Fortunately, seven companies joined the list for 2024.
The list contains many well-known names like Caterpillar (CAT), the manufacturer of farm and construction equipment. Or a consumer goods giant like McDonald’s (MCD).
But many smaller names also make the list, including local power and water utilities or small banks. On that list investors may find Prosperity Bancshares (PB), and Middlesex Water Co. (MSEX).
Many dividend growth companies don’t have a high payout. But the dividend growth over time rewards long-term holders of shares. That makes dividend champions an ideal starting point for long-term investors who may eventually want income from their portfolios in the years ahead.