One of the smartest investments you can make is investing in companies that consistently increase their dividend payments. Dividend growers have historically delivered the highest average annualized total returns among companies based on their dividend policy, at 10.2% over the last 50 years, according to data from Ned Davis Research and Hartford Funds. They have significantly outperformed companies with no change in their dividend policies (an average annualized total return of 6.8%) and companies that don't pay dividends (4.3%).
ExxonMobil (XOM +1.38%), Agree Realty (ADC +0.40%), and Kimberly Clark (KMB +1.80%) have a long history of increasing their dividends, which is likely to continue. That makes them stand out as some of the smartest dividend stocks to buy right now. They could turn $1,000 into a lucrative and growing income stream.
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The fuel to grow through 2030 (and beyond)
ExxonMobil has increased its dividend for 43 straight years. Less than 5% of companies in the S&P 500 have reached that milestone. The oil giant's dividend currently yields 3.5%. At that rate, a $1,000 investment would generate about $35 (and growing) of dividend income each year. Exxon's growing dividend has helped fuel its strong performance over the past five years.
The oil giant is one of the most profitable companies in the industry. ExxonMobil expects to make even more money in the future. It recently raised its 2030 plan, which now has it on track to deliver $25 billion of additional earnings and $35 billion of incremental cash flow by 2030 at constant prices and margins compared to 2024. Fueling this growth is Exxon's cost-savings plan and its investments to grow its advantaged assets (the highest margin and lowest cost).
NYSE: XOM
Key Data Points
Exxon's plans have it on pace to produce $145 billion in cumulative surplus free cash flow by 2030 at an average oil price of around $65 per barrel (near the current level). That will provide Exxon with ample funds to continue growing its dividend and repurchasing a substantial amount of its shares each year (it's targeting to buy back $20 billion in 2026).
A high-quality, high-yielding monthly dividend stock
Agree Realty is a real estate investment trust (REIT) focused on investing in income-producing retail properties. The company currently owns over 2,600 freestanding properties, net leased or ground leased to financially strong retailers, including Walmart and Tractor Supply. Those lease structures provide it with very predictable rental income, especially considering that roughly two-thirds of its rent comes from tenants with investment-grade credit ratings. This stable cash flow supports the REIT's 4.3%-yielding monthly dividend.
NYSE: ADC
Key Data Points
The landlord has grown its dividend at a 5.3% annualized rate over the past decade. This steady growth has supported its robust 11.8% average annual total return since its IPO in 1994.
Agree Realty grows its dividend by acquiring additional income-producing retail properties. It has invested over $10 billion to buy properties since 2010. The REIT has a massive future investment opportunity, as its current retail partners own over 170,000 locations that the REIT could potentially acquire through sale-leaseback transactions in the future. With one of the strongest financial profiles in the industry, Agree Realty has plenty of financial flexibility to continue growing its portfolio and high-yielding monthly dividend payment.
Dividend royalty
Kimberly Clark has paid dividends to its shareholders for 91 straight years. It has increased its payment for 53 years in a row. That qualifies the consumer products company as a Dividend King, a company with 50 or more years of annual dividend increases. The company's payout currently yields 5%.
NASDAQ: KMB
Key Data Points
It owns a portfolio of trusted consumer brands, including Huggies, Kleenex, Scott, and Cottonelle. These brands hold the No. 1 or No. 2 market share positions in about 70 countries. They provide the company with resilient and steadily growing revenue to support its rising dividend payment.
Kimberly Clark routinely enhances its portfolio by acquiring other leading consumer brands. It agreed to buy Kenvue for $48.7 billion earlier this year in a deal it expects to close in 2026. Kenvue owns leading consumer healthcare brands like Band-Aid, Listerine, and Tylenol. The company expects the combination to create shareholder value through $2.5 billion in anticipated cost and revenue synergies within the first couple of years following the transaction's closing. The increased earnings from this deal will help support Kimberly Clark's growing dividend in the future.
Great dividend growth stocks
ExxonMobil, Agree Realty, and Kimberly Clark have excellent track records of growing their dividends. With more growth ahead, these companies should be able to produce attractive total returns for their investors over the long term. That makes them smart dividend stocks to buy right now.
