10 Finest Shares For Compounding Dividends – Certain Dividend

Article up to date on December nineteenth, 2025 by Nathan ParshSpreadsheet knowledge up to date each day

Revenue buyers in search of compounding dividends over time, ought to think about high-quality dividend progress shares. These shares have the power to boost their dividends over time, thereby unleashing the ability of compounding dividends.

That is why Certain Dividend typically recommends the Dividend Aristocrats, a choose group of 69 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of the perfect’ dividend progress shares. The Dividend Aristocrats have a protracted historical past of compounding dividends for shareholders.

There are presently 66 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics that matter resembling dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:

 

Disclaimer: Certain Dividend will not be affiliated with S&P International in any approach. S&P International owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.

Dividend Aristocrats will need to have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet sure minimal measurement and liquidity necessities.

Attributable to their robust dividend historical past and sturdy aggressive benefits, the Dividend Aristocrats are a terrific place to begin in search of compounding dividends.

This text will clarify the idea of compounding dividends in higher element, in addition to an inventory of the highest 10 shares for compounding dividends proper now.

Desk of Contents

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What Is Compounding Dividends?

Put merely, compounding is the act of incomes curiosity on previously-earned curiosity. On this approach, buyers might consider compounding just like the snowball impact.

If you push a small snowball down a hill, it repeatedly picks up snow. When it reaches the underside of the hill it’s a large snow boulder.

The snowball compounds throughout its journey down the hill. The larger it will get, the extra snow it packs on with every revolution.

The snowball impact explains how small actions carried out over time can result in huge outcomes.

In the identical approach, investing in high-quality dividend progress shares can generate massive quantities of dividend earnings over lengthy durations of time.

That’s as a result of dividend progress shares are inclined to pay rising dividends yearly. After which you’ll be able to reinvest these rising dividends to buy extra shares every year.

This leads to a rise within the complete variety of shares you personal, in addition to a rise within the dividend per share, for a robust compounding impact.

Right here’s the ability of compound curiosity:

Think about you invested $1 that compounded at 1% a day. In 5 years your $1 would develop to over $77 million. You’d be the richest particular person on this planet by 12 months 7.

Remember the fact that compounding will not be a get wealthy fast scheme. It takes time – and plenty of it. There aren’t any investments that compound at 1% a day in the actual world.

The inventory market has compounded wealth (adjusting for inflation) at ~7% a 12 months over the long term. At this fee an funding within the inventory market has traditionally doubled each 10.4 years.

The ten Finest Shares For Compounding Dividends

The next 10 shares are our top-ranked shares for compounding dividends, based mostly on a qualitative evaluation of dividend historical past, present yield, and payout ratios.

All of the shares within the listing beneath have present yields above 2%, at the very least 25 consecutive years of dividend will increase, and payout ratios beneath 70%.

As well as, the ten finest shares for compounding dividends beneath have Dividend Danger Scores of A or B.

This mix is more likely to end in sustained dividend will increase over time, thereby compounding dividends to create long-term wealth.

The shares are ranked so as of their 5-year dividend progress fee, from lowest to highest.

#10: T. Rowe Worth Group Inc. (TROW)

Payout Ratio: 52%
Years of Dividend Will increase: 39
5-12 months Dividend Development Price: 3.

T. Rowe Worth Group, based in 1937 and headquartered in Baltimore, MD, is likely one of the largest publicly traded asset managers. The corporate supplies a broad array of mutual funds, sub-advisory companies, and separate account administration for particular person and institutional buyers, retirement plans, and monetary intermediaries. T. Rowe Worth has a market capitalization of about $22 billion and had property beneath administration (AUM) of almost $1.8 trillion as of the tip of Q3 2025.

T. Rowe Worth introduced third-quarter outcomes on October thirty first, 2025.

Supply: Investor Sources

Income for the quarter grew 5.6% to $1.89 billion, although this was $10 million lower than anticipated. Adjusted earnings-per-share of $2.81 in contrast favorably to $2.57 within the prior 12 months and was $0.27 above estimates.

Through the quarter, AUMs totaled $1.77 trillion, which represented progress of 5.4 % year-over-year, however a decline of 1.1% sequentially. Market appreciation of $89.1 billion was offset by internet money outflows of $7.9 billion. Working bills of $1.25 billion elevated 6.7% year-over-year and 0.4% quarter-over-quarter.

Click on right here to obtain our most up-to-date Certain Evaluation report on TROW (preview of web page 1 of three proven beneath):

#9: AbbVie (ABBV)

Payout Ratio: 65%
Years of Dividend Will increase: 55
5-12 months Dividend Development Price: 5.0%

AbbVie is a biotechnology firm centered on creating and commercializing medication for immunology, oncology, and virology. AbbVie was spun off by Abbott Laboratories in 2013. The corporate has a somewhat brief stand-alone historical past. However, AbbVie has grow to be one of many largest gamers within the biotechnology business, particularly following the closing of its acquisition of previously unbiased pharma firm Allergan.

On October thirty first, 2025, AbbVie introduced that it was elevating its quarterly dividend 5.5% to $1.73 per share.

That very same day, the corporate reported third-quarter outcomes. Income grew 9% to $15.8 billion, which was $190 million greater than anticipated. Adjusted earnings-per-share of $1.86 in contrast unfavorably to $3.00 within the prior 12 months, however this was $0.8 above estimates.

AbbVie’s revenues had been positively impacted by compelling progress from a few of its main medication, together with Skyrizi and Rinvoq, whereas Humira gross sales declined by 55% attributable to competitors from biosimilars and market share losses. The revenue decline was largely attributable to milestone bills and acquisitions.

AbbVie’s steering for 2025’s adjusted earnings-per-share is $10.61 – $10.65 on a per-share foundation. Which means that earnings per share will probably be up in comparison with 2024, reversing the current down pattern.

Click on right here to obtain our most up-to-date Certain Evaluation report on ABBV (preview of web page 1 of three proven beneath):

#8: The Coca-Cola Firm (KO)

Payout Ratio:68%
Years of Dividend Will increase: 63
5-12 months Dividend Development Price: 5.0%

Coca-Cola is likely one of the largest beverage corporations on this planet, because it owns or licenses greater than 500 distinctive non-alcoholic manufacturers. The $300 billion firm has operations in additional than 200 international locations worldwide. The corporate’s merchandise are served about 2 billion occasions every day, producing annual income of near $48 billion. The corporate’s portfolio contains 30 manufacturers that generate at the very least $1 billion in annual income.

Supply: Investor Presentation

Coca-Cola launched third-quarter earnings outcomes on October twenty first, 2025, with outcomes that had been above estimates on each the highest and backside strains. Adjusted earnings-per-share of $0.82 was $0.04 higher than anticipated whereas income of $12.5 billion was $90 million greater than anticipated.

Income beneficial properties had been supported by a 6% enchancment in worth/combine whereas focus gross sales had been unchanged. Focus gross sales had been 1 level behind case quantity because of the timing of focus shipments. Natural income grew 6%, which was 1.2% higher than anticipated.

The working margin expanded 120 foundation factors to 31.9%, which was 40 foundation factors greater than projected. Positive aspects had been pushed by natural income progress and efficient price administration, partially offset by a rise in marking funding and forex headwinds.

Click on right here to obtain our most up-to-date Certain Evaluation report on KO (preview of web page 1 of three proven beneath):

#7: Sonoco Merchandise Firm (SON)

Payout Ratio: 37%
Years of Dividend Will increase: 49
5-12 months Dividend Development Price: 5.0%

Sonoco Merchandise Firm supplies packaging, industrial merchandise, and provide chains companies to its prospects. The markets that use the corporate’s merchandise embody these within the home equipment, electronics, beverage, building and meals industries. Sonoco Merchandise is now composed of two main segments, Shopper Packaging, and Industrial Packaging, with all different companies listed as “All Different”.

Sonoco Merchandise reported third-quarter outcomes on October twenty second, 2025.

Supply: Investor Presentation

Income for the quarter surged 58% to $2.13 billion, although this was $20 million lower than anticipated. Adjusted earnings-per-share of $1.92 in contrast favorably to $1.49 within the prior 12 months, however this was $0.01 beneath estimates.

As with prior quarters, income and earnings-per-share benefited from the corporate’s buy of Eviosys in December of 2024.

Income for Shopper Packing was up 117% to $1.44 billion, largely attributable to contributions from Eviosys. Outcomes had been additionally positively impacted by worth will increase that had been applied to offset tariffs.

Industrial Paper Packing gross sales had been unchanged at $585 million as worth will increase had been offset by weaker quantity ensuing from two plant divestitures in China final 12 months.

All Different grew 1% to $108 million attributable to quantity beneficial properties in temperature-assured packaging.

Click on right here to obtain our most up-to-date Certain Evaluation report on SON (preview of web page 1 of three proven beneath):

#6: H2O America (HTO)

Payout Ratio: 57%
Years of Dividend Will increase: 57
5-12 months Dividend Development Price: 6.0%

H2O America, previously generally known as SJW Group, is a water utility firm that produces, purchases, shops, purifies and distributes water to shoppers and companies in California, Texas, Connecticut, and Maine. H2O America has a small actual property division that owns and develops properties for residential and warehouse prospects in California and Tennessee.

Supply: Investor Relations

H2O America reported third-quarter outcomes on October twenty eighth, 2025. Income for the interval grew 6.9% to $240.6 million and topped expectations by $2.1 million. Earnings-per-share of $1.27 was up from $1.18 in the identical interval of the prior 12 months and was $0.09 forward of estimates.

Water charges added $21.2 million to outcomes whereas larger buyer utilization contributed $700K. Working bills elevated 6% to $175.9 million as pensions prices, salaries and wages, and inflationary will increase did affect the enterprise.

H2O America expects to take a position greater than $2 billion in capital over the following 5 years in its wastewater operations. The corporate invested almost $358 million by the tip of the third-quarter.

The corporate additionally famous it had obtained approval for a number of fee instances through the quarter in addition to just lately submitted fee instances to regulators.

Click on right here to obtain our most up-to-date Certain Evaluation report on HTO (preview of web page 1 of three proven beneath):

#5: Johnson & Johnson (JNJ)

Payout Ratio: 48%
Years of Dividend Will increase: 63
5-12 months Dividend Development Price: 6.0%

Johnson & Johnson is a diversified well being care firm and a pacesetter in revolutionary medicines and medical units Johnson & Johnson was based in 1886 and employs almost 138,000 individuals around the globe. The corporate is projected to generate greater than $93 billion in income this 12 months.

On October 14th, 2025, Johnson & Johnson reported third-quarter outcomes for interval ending September thirtieth, 2025.

Supply: Investor Presentation

For the quarter, income grew 6.7% to $24 billion, which beat estimates by $240 million. Adjusted earnings-per-share of $2.80 in comparison with $2.42 within the prior 12 months and was $0.04 higher than anticipated.

Income for Modern Medicines grew 6.8%. Infectious Illness decreased 0.9% on a reported foundation as progress in Edurant, which is used to deal with HIV, was greater than offset by weak spot in the remainder of the portfolio. Oncology grew 21.3% attributable to ongoing excessive demand for Darzalex, which treats a number of myeloma, and continued excessive demand in a number of different merchandise.

Immunology was down 9.8%. Weak spot for Stelara, which treats immune-mediated inflammatory ailments, was as soon as once more attributable to biosimilar competitors. Offsetting this was ongoing market share beneficial properties for Tremfya, which treats continual inflammatory situations resembling plaque psoriasis and arthritis. Remicade, which treats autoimmune ailments resembling Crohn’s illness, benefited from a one-time favorable affected person combine adjustment.

Income for MedTech grew 6.8%. Cardiovascular continues to provide wonderful outcomes, as gross sales had been larger by 12.6% attributable to new merchandise. Surgical procedure had gross sales progress of 4.4% as beneficial properties in biosurgery and endocutters was offset by more durable competitors in vitality.

Orthopaedics returned to progress, with income enhancing 3.8% attributable to new merchandise and a rise in demand for knees and hips merchandise. The corporate introduced that it plans to separate its orthopedics enterprise right into a standalone firm referred to as “DePuy Synthes” inside the subsequent 18 to 24 months.

Click on right here to obtain our most up-to-date Certain Evaluation report on JNJ (preview of web page 1 of three proven beneath):

#4: PepsiCo Inc. (PEP)

Payout Ratio: 70%
Years of Dividend Will increase: 53
5-12 months Dividend Development Price: 6.0%

PepsiCo is a worldwide meals and beverage firm that generates annual gross sales of almost $92 billion. The corporate has a powerful portfolio of manufacturers.

Supply: Investor Relations

This contains main manufacturers resembling Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana, and Quaker meals. The corporate has greater than 20 $1 billion manufacturers.

On October ninth, 2025, PepsiCo reported third-quarter outcomes, with income rising 2.7% to $23.9 billion, which was $90 million greater than anticipated. Adjusted earnings-per-share of $2.29 was down from $2.31 within the prior 12 months, however $0.03 forward of estimates. Foreign money alternate did decrease outcomes by 2% for adjusted earnings-per-share.

Natural gross sales had been up 1.3% for the interval. Meals and beverage volumes fell 1% year-over-year. PepsiCo Drinks North America had natural progress of two% regardless of a 3% decline in quantity.

PepsiCo Meals North America declined 3%, totally on account of divestitures. Meals quantity was decrease by 4%.

Worldwide Drinks fell 1%, largely attributable to decrease quantity. Revenues in Europe/Center East/Arica had been up 5.5% whereas Latin America improved 4%, and Asia Pacific elevated 1%.

Click on right here to obtain our most up-to-date Certain Evaluation report on PEP (preview of web page 1 of three proven beneath):

#3: McCormick & Firm (MKC)

Payout Ratio: 60%
Years of Dividend Will increase: 39
5-12 months Dividend Development Price: 7.0%

McCormick & Firm produces, markets, and distributes seasoning mixes, spices, condiments and different merchandise to prospects within the meals business. McCormick was based in 1889 by Willoughby M. McCormick and controls ~20% of the worldwide seasoning and spice market.

McCormick introduced third-quarter outcomes on October seventh, 2025.

Supply: Investor presentation

Income elevated 2.4% year-over-year to $1.72 billion, which beat estimates by $10 million. Adjusted earnings-per-share of $0.85 in comparison with $0.83 within the prior 12 months and was $0.03 higher than anticipated.

Quantity and blend improved 1.2% whereas pricing was up 0.6%. The Shopper section improved 2.6% for the interval as quantity and blend elevated 2.2% whereas larger costs added 0.4%. Natural progress for the Americas and EMEA areas improved 2.7% and 4.4%, respectively, whereas Asia/Pacific decreased 0.8%.

Taste Options grew 0.6% from the prior 12 months as a 0.9% contribution from pricing was partially offset by a 0.3% lower in quantity. Asia/Pacific was larger by 6.3% organically, the Americas improved 0.9%, and EMEA was decrease by 3.1%.

Click on right here to obtain our most up-to-date Certain Evaluation report on MKC (preview of web page 1 of three proven beneath):

#2: Automated Knowledge Processing (ADP)

Payout Ratio: 62%
Years of Dividend Will increase: 51
5-12 months Dividend Development Price: 9.0%

Automated Knowledge Processing is likely one of the largest enterprise companies outsourcing corporations on this planet, with greater than 700,000 company prospects. The corporate supplies payroll companies, human sources know-how, and different enterprise operations. The corporate generates almost $22 billion of annual revenues.

Automated Knowledge Processing launched Q1 earnings outcomes on October twenty ninth, 2025.

Supply: Investor Presentation

Adjusted earnings-per-share of $2.49 was $0.05 higher than anticipated whereas income grew 7.2% to $5.18 billion and beat estimates by $50 million.

Employer Providers income improved 7% to $3.49 billion whereas section earnings had been up 6% to $1.23 billion. PEO Service income additionally elevated 7% to $1.69 billion, although section earnings had been all the way down to $219 million.

Automated Knowledge Processing additionally has raised its dividend 10.4% to $1.70, extending the corporate’s dividend progress streak to 51 consecutive years.

Click on right here to obtain our most up-to-date Certain Evaluation report on ADP (preview of web page 1 of three proven beneath):

#1: Aflac Inc. (AFL)

Payout Ratio: 33%
Years of Dividend Will increase: 44
5-12 months Dividend Development Price: 10.0%

Aflac Inc, which was based in 1955, is the world’s largest underwriter of complement most cancers insurance coverage. The diversified insurance coverage company additionally supplies accident, short-term incapacity, crucial sickness, dental, imaginative and prescient, and life insurance coverage. Almost 70% of pretax earnings are from Japan, with the remaining coming from the U.S. The corporate generated $5.4 billion of revenue final 12 months.

Aflac reported third-quarter outcomes on November 4th, 2025.

Supply: Investor Presentation

Income was up almost 61% to $4.74 billion, which was $260 million greater than anticipated. Web earnings of $1.6 billion, or $3.08 per share, in comparison with a internet earnings lack of $93 million, or -$0.17 per share within the prior 12 months. Nonetheless, this contains funding beneficial properties of $275 million, that are excluded from adjusted earnings. On an adjusted foundation, earnings-per-share equaled $2.49 in comparison with $2.16 in Q3 2024 and was $0.71 above estimates.

The acquire in income was primarily attributable to funding beneficial properties in comparison with funding losses in the identical interval of the earlier 12 months. In U.S. {dollars}, Aflac Japan’s quarterly internet earned premiums decreased 2.7% to $1.7 billion whereas Aflac U.S. internet earned premiums improved 2.5% to $1.5 billion. The corporate’s adjusted guide worth of $53.33 in comparison with $51.21 within the prior 12 months.

Aflac repurchased greater than 9 million shares at a median worth of $108 through the quarter. The corporate’s remaining repurchase authorization is for 121.6 million shares, or a few quarter of its excellent share rely.

On November eleventh, 2025, Aflac introduced that it was elevating its quarterly dividend by 5.2%, rising the corporate’s dividend progress streak to 44 years.

Click on right here to obtain our most up-to-date Certain Evaluation report on AFL (preview of web page 1 of three proven beneath):

Closing Ideas

Excessive-quality dividend progress shares can construct long-term wealth for shareholders. A significant purpose for that is the mixture of dividend progress and dividend reinvestment.

The ten shares listed within the article characterize a few of the finest shares for dividend compounding.

Certain Dividend maintains related databases on the next helpful universes of shares: