Dividend stocks have proved the best way to accumulate generational wealth. Better than gold, bonds, real estate, or oil, income-producing stocks have handily outperformed all of them over time.

The wealth management division of JPMorgan Chase (NYSE:JPM) compared the returns of stocks that paid dividends and increased them to those of companies that didn’t pay dividends. It found over the 40 years between 1972 and 2012, non-income stocks generated just 1.6% annually for investors while dividend stocks generated a whopping 9.5% annually.

With dividends contributing 41% to the total return of the S&P 500 index for the past 90 years, it is clear owning dividend stocks is one of the best ways to build a retirement portfolio.

Key Points About This Article:

• Dividend stocks are the best way to build a lucrative retirement portfolio as they easily outperform non-income-producing stocks and all other asset classes.
• Stocks that have paid dividends for over 100 years are an extremely rare breed and worthy of closer consideration.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks“ now.

Unbeatable Records of Rewarding Shareholders

Because consistency and reliability are the hallmarks of the best dividend stocks, the following three companies should be on your radar. They have some of the longest track records for paying dividends. For over 100 years, these three dividend stocks rewarded their investors through world wars, global pandemics, recessions and depressions.

An investment in these stocks is about as close as you can come to guaranteeing a steady reward for the rest of your investing career. 

York Water (YORW)

No discussion of dividend stocks is complete with mentioning York Water (NASDAQ:YORW). This small water utility provides clean water and wastewater services to 55 municipalities in south-central Pennsylvania. Yet despite its humble operations, it is the granddaddy of all dividend stocks.

Founded in 1816, it is the oldest investor-owned utility that has paid investors a dividend for 208 years. There is no stock on the market with a longer track record of producing income for shareholders than York Water. To put it in perspective, James Madison was president when York began paying dividends.

It is the epitome of why utility stocks were considered widows-and-orphans stocks. These vulnerable individuals relied upon the steady stream of revenue utilities produce. And though not immune from market forces, they often have a monopoly on the service provided. Utilities have been among the best-performing stocks this year.

Over the past 25 years, York Water has generated a total return of 1,200% or more than twice the 566% return of the S&P 500. The dividend yields 2.2% annually and is arguably the most rock-steady dividend payer out there.

Colgate-Palmolive (CL)

Even older than York Water is Colgate-Palmolive (NYSE:CL), which was founded in 1806 as a soap and candle company  but has grown into a multinational corporation owning some of the best-known consumer brands on the market. Among those are its Colgate toothpaste and Palmolive dish soap, of course, but also Speed Stik deodorant, Murphy’s oil, Irish Spring soap, and Ajax cleaner. Many occupy the top one or two spots in their respective markets around the globe.

Colgate began paying a dividend in 1895 and never stopped. In 1964, it began regularly raising its payout every year. That 60-year string of increases has earned the company a spot on the Dividend King list. Those are companies that have hiked their dividends for 50 years or more. The increases aren’t huge, but have averaged around 3.5% annually for the last 10 years.

3M (MMM)

Industrial conglomerate 3M (NYSE:MMM) was also a Dividend King until earlier this year when its slashed its dividend in half. The owner of Post-It Notes and Scotch brand tape ended a 64-year record of raising its dividend as mounting legal and regulatory woes took a toll on its ability to continue making the same payout.

 Moreover, it also spun off its consumer healthcare business Solventum (NYSE:SOLV). It was the one division that was seen as a strong growth driver for 3M. With fairly miserly increases over the past few years, the ravages of inflation meant investors were actually receiving less in income that they were previously.

While the conglomerate cut the dividend, 3M didn’t stop paying it. The company has paid a dividend for over 100 years and continues to do so, albeit at a lower rate. As it settles the lawsuits and puts a disruptive period behind it, there is a strong possibility 3M returns to a pattern of dividend increases.

 Its previous CEO Mike Roman said after spinning off Solventum, “Paying a competitive dividend has been a priority for 3M for more than 100 years. This will continue to be true.” As a much financially healthier stock, also expect to see 3M stock grow from here.

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