5 Dividend Stocks That Give You Consistent Raises

By Trey Thoelcke Published Jul 15, 6:55AM EDT

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According to Bankrate.com, savings accounts yields average roughly 0.47% and five-year certificates of deposit (CDs) average roughly 1.71%. All individuals need to assume a little more risk if they want a higher rate of income.

Looking for stocks that belong to the “dividend aristocrat” list represents a good place to start the search for higher yields. Dividend aristocrats include companies that have raised their dividends for at least 25 consecutive years, giving an indication of their financial prudence. Typically these are large, mature companies that grow revenue and earnings slowly.

Keep in mind that investing in conservatively managed companies such as these comes with a little more risk than investing in a savings account or CD, but it also provides the potential for a higher yield and small capital gains to boost your future income. Let’s take a look at five companies that consistently give their shareholders raises.

AT&T Inc. (NYSE: T) is a communications holding company that provides traditional landline voice and data service, in addition to cell phone communications. Last December, AT&T gave its shareholders a raise for the 31st straight year. AT&T currently pays its shareholders $1.88 per share per year and yields an amazing 5.5% annually.

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Coca-Cola Co. (NYSE: KO) makes, sells and distributes beverages. In February, Coca-Cola’s board of directors declared its 52nd annual dividend raise. The company pays its shareholders $1.32 per share per year and yields 3.3% annually.

PepsiCo Inc. (NYSE: PEP) makes, sells and distributes beverages, snacks and foods across the globe. The company declared its 43rd consecutive dividend increase in May. Currently, the company pays its shareholders $2.81 per share per year, yielding a respectable 3% annually.

Genuine Parts Co. (NYSE: GPC) sells mostly automotive parts under the Napa label. It also sells industrial products under the Motion Industry label, office products under the S.P. Richards label and electronic products under the EIS label. The company raised its dividend 59 consecutive years, as of 2015. The company now pays its shareholders $2.46 per share per year and yields 2.8% annually.

Wal-Mart Stores Inc. (NYSE: WMT) is the largest retailer in the world in terms of revenue, according to the National Retail Federation’s website. In February, Wal-Mart increased its dividend for the 42nd year in a row. Currently, the company pays its shareholders $1.96 per share per year, yielding 2.7% annually.

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These companies represent mature, conservatively managed companies. By no means are future dividend raises guaranteed. But in the business world, winners tend to keep winning, and the shareholders of these companies could potentially benefit in the form of higher dividend-based income and the potential for capital gains.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.