Dividend Champions are long-term winners. These companies have grown their dividends for at least 25 straight years. They don't have to be members of the S&P 500 (^GSPC -0.64%), which broadens the universe of qualifying stocks.
Here are seven top Dividend Champions to buy now to steadily grow your dividend income.
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1. Chevron
Chevron (CVX 0.82%) is a leading integrated oil and gas producer. Its industry-leading upstream break-even level at around $30 a barrel means Chevron can remain profitable even if oil prices fall. It also boasts having a fortress-like balance sheet and one of the sector's lowest leverage ratios. These features put Chevron in a strong position to pay a sustainable and steadily growing dividend.
The oil giant has increased its dividend for 38 straight years, which includes multiple downturns in the oil market. It has delivered peer-leading dividend growth over the past decade, a period when several peers had to reduce their payments due to oil price volatility.
Chevron expects to add an incremental $12.5 billion to its annual free cash flow starting next year. Meanwhile, its recently closed merger with Hess enhanced and extended its production and free cash flow growth outlook into the 2030s. As a result, it should have plenty of fuel to continue increasing its more than 4%-yielding dividend in the future.
2. Consolidated Edison
Consolidated Edison (ED 0.06%) is an electric and gas utility focused on the New York City area. Because its utility operations generate steady cash flow from stable demand and government-regulated rates, the company can maintain and steadily grow its dividend. This reliability should appeal to investors aiming for consistent income.
The company delivered its 51st annual dividend increase earlier this year, the longest streak among utilities in the S&P 500. As a result, it's not just a Dividend Champion, but also a Dividend King, as a company with 50 or more years of dividend increases.
Consolidated Edison plans to invest $38 billion to maintain and grow its utility operations through the end of the decade. These investments should deliver reliable earnings growth, giving the utility plenty of power to continue increasing its nearly 3.5%-yielding dividend.
3. Enterprise Products Partners
Enterprise Products Partners (EPD 0.59%) is a master limited partnership (MLP) that owns energy midstream assets, including pipelines, processing plants, and export terminals. The long-term contracts and regulated rate structures provide the MLP with highly predictable cash flow, supporting its attractive nearly 7% yield. Enterprise offers income-focused investors a robust payout, backed by a strong financial profile.
The MLP has increased its distribution for 27 straight years. That growth should continue. Enterprise currently has $6 billion of organic capital projects on track to enter commercial service by the end of this year, which should provide a big boost to its cash flow in 2026. The MLP expects to invest between $2.2 billion and $2.5 billion in growth capital projects next year to further enhance its cash flow.
With one of the best balance sheets in the energy midstream sector, Enterprise Products Partners has ample fuel to continue growing its business and high-yielding distribution.
4. Enbridge
Enbridge (ENB 1.21%) is a leading North American energy infrastructure company. With 98% of earnings from predictable revenue frameworks, Enbridge has extreme visibility into its earnings. The Canadian pipeline and utility company has achieved its annual financial guidance for 19 straight years, making it a compelling option for investors who highly value predictability.
The energy company has increased its dividend (which yields nearly 6%) for 30 straight years. It should have plenty of fuel to continue increasing its payout in the future. Enbridge currently has around 32 billion Canadian dollars ($23 billion) of capital projects in its backlog that should enter commercial service through 2029. This backs the company's outlook that it can grow its cash flow per share at a 3% annual rate through 2026 and by around 5% annually thereafter, which should support dividend growth within the same annual range.
5. Genuine Parts
Genuine Parts (GPC 0.12%) is a leading provider of automotive and industrial replacement parts. The company has been incredibly resilient over the decades, growing its sales in 91 of its 97 years, while increasing its earnings in 79 of those years. That has enabled the company to pay one of the world's most consistent dividends. This year marks the 69th straight year it has raised its payment.
The company has benefited from durable and growing demand for replacement parts. It also has a very disciplined record of making acquisitions that drive profitable growth. Genuine Parts seeks deals that will accelerate its sales growth and margin rates, while also boosting its earnings per share within the first year. The company's strong cash flows and balance sheet should enable it to steadily grow its business and 3%-yielding dividend.
6. NNN REIT
NNN REIT (NNN 1.73%) is a real estate investment trust (REIT) focused on investing in single-tenant, net leased (NNN) retail properties. NNN leases generate very stable rental income because tenants cover all property operating costs such as routine maintenance, real estate taxes, and building insurance. The company invests in well-located properties in strong markets, making it easier to find a replacement tenant should the existing one run into financial difficulties.
The NNN REIT has increased its dividend for 36 straight years, the third-longest streak in the sector. Less than 80 publicly traded companies have reached this milestone.
The REIT remains in an excellent position to continue increasing its more than 5.5%-yielding dividend. It has a very conservative financial profile, giving it the flexibility to continue investing in new income-generating retail properties.
7. PepsiCo
PepsiCo (PEP 1.14%) is a global beverage and snacking giant. Its iconic brands generate steady and growing cash flow to support its nearly 4% dividend yield. The company has raised its dividend payment for 53 years in a row, joining Consolidated Edison as a Dividend King.
PepsiCo's reign among the dividend elite should continue. It invests heavily to grow its business through new product innovations, capacity expansions, and productivity enhancements. The company anticipates these investments will drive mid-single-digit annual revenue growth and high-single-digit earnings-per-share growth over the long term. PepsiCo also has a strong balance sheet, which it's currently using to make acquisitions that accelerate the transformation of its portfolio to healthier food and drink options.
Winning dividend stocks
These companies have all increased their dividends annually for at least a quarter-century. Their resilient business models and financial strength put them in excellent positions to continue growing their payouts. It makes them ideal choices for investors seeking durable and steadily rising passive dividend income.
