With thousands of publicly traded stocks and exchange-traded funds to choose from, there is no shortage of ways to build wealth on Wall Street. But among the countless stock market strategies to grow your wealth, few are as consistently profitable as buying and holding high-quality dividend stocks.
Companies that pay a regular dividend often check all the appropriate boxes. They're almost always profitable on a recurring basis, have demonstrated they can navigate their way through economic downturns, and are capable of providing investors with transparent long-term growth forecasts.
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What investors tend to appreciate most about income stocks is their long-term outperformance. In "The Power of Dividends: Past, Present, and Future," the analysts at Hartford Funds, in collaboration with Ned Davis Research, compared the performance and volatility of dividend stocks to non-payers spanning 51 years (1973-2024). On average, dividend payers more than doubled the annualized return of the non-payers (9.2% vs. 4.31) -- and they did so with far less volatility.
However, not all dividend stocks are created equally. While investors typically focus on the almighty yield, other variables come into play, including the sustainability of the payout and the outlook for the underlying company, among other factors.
But a small group of dividend stocks -- some of which are completely off investors' radar -- are a cut above the rest and can truly be classified (by me) as the "Three Greatest Dividend Stocks on Wall Street."
Realty Income: Has increased its monthly payout 133 times since its IPO in 1994
One of the easiest ways to spot greatness in the dividend arena is when a company has its own registered trademark. Premier retail real estate investment trust (REIT) Realty Income (O 0.56%) is known as "The Monthly Dividend Company®."
NYSE: O
Key Data Points
Since Realty Income's initial public offering (IPO) in 1994, it's declared 667 consecutive monthly stock dividends, has increased its payout for 113 consecutive quarters, and has boosted its payout a cumulative 133 times. There's not a public company (that I'm aware of) that's upped its payout more frequently than Realty Income.
One of the factors that allows this company to support robust dividend growth is its resilient commercial real estate (CRE) portfolio. It closed out the third quarter with more than 15,500 CRE properties, many of which are resilient to recessions and e-commerce pressures. Realty Income primarily leases to brand-name, stand-alone businesses in industries that can lure consumers in any economic climate, such as grocery stores, drug stores, convenience stores, dollar stores, and automotive services.
Management also deserves credit for a rich history of exceptional lease vetting. Only a tiny percentage of its renters have historically failed to pay their rent, with its weighted-average lease length sitting at almost nine years as of the end of September. Realty Income being able to generate highly predictable funds from operations is what fuels its unparalleled monthly dividend increases.
Furthermore, Realty Income has been expanding its horizons beyond retail. Over the last couple of years, it's entered the gaming industry and has forged a joint venture to lease build-to-suit data centers to take advantage of the artificial intelligence revolution.
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American States Water: Has increased its base annual dividend for 71 consecutive years
However, not all of the stock market's greatest dividend stocks are as well-known as Realty Income. Keeping in mind that yield isn't everything, relatively unknown water and electric utility American States Water (AWR +0.42%) holds a unique distinction among dividend payers.
Entering 2026, close to five dozen public companies qualified as Dividend Kings -- companies that have raised their base annual payout for at least 50 consecutive years. American States Water heads that list, with the company announcing its 71st straight year of increased payouts in October 2025. According to the company, it's targeting a "compound annual growth rate in the dividend of more than 7% over the long-term."
One of the beautiful aspects of utility stocks, from an investment standpoint, is that they operate as monopolies or duopolies in the areas they serve. Given the high cost of installing the necessary infrastructure, utilities like American States Water don't have to worry about their customers being siphoned away by a competitor. This leads to highly predictable demand for water and electricity year after year.
NYSE: AWR
Key Data Points
On a more company-specific basis, the company's contracted services segment sets it apart. Although its water and wastewater operations are its most profitable segment, its contracted services subsidiary, American States Utility Services, provides maintenance and construction management for water distribution, collection, and treatment facilities on military installations in 12 counties throughout California. The contracts associated with this government work are 50-year agreements.
Furthermore, its water utility subsidiary, Golden State Water Company, is regulated by the California Public Utilities Commission (CPUC). Although regulated utilities can't increase rates on their customers without approval from a state public utility commission (CPUC in this case), it also ensures that American States Water isn't exposed to unpredictable wholesale pricing.
York Water: Has been paying a dividend for 209 consecutive years
Whereas American States Water is a $2.8 billion company that sees an average of 282,000 shares trade hands on a daily basis, Pennsylvania-based York Water (YORW +0.27%) is a truly off-the-radar income stock. It's a $479 million water and wastewater company that has fewer than 83,000 shares trade daily and serves just 57 municipalities spanning four counties in South-Central Pennsylvania. I'd wager 99% of investors have never heard of York Water.
But when it comes to dividend consistency, no public company comes remotely close to matching this tiny water utility. Although it's not guaranteed to raise its dividend annually, York Water has been doling out a dividend to its shareholders for (drum roll)... 209 consecutive years! To put this into perspective, York has paid a dividend under every American president, save for the first three. The next-closest public company, Stanley Black & Decker, trails its consecutive dividend streak by a full six decades (149 years).
NASDAQ: YORW
Key Data Points
York and American States Water share the trait of being regulated utilities. Last year, York requested a sizable rate increase from the Pennsylvania Public Utility Commission (PPUC) to cover ongoing investments in new and existing infrastructure. If approved by the PPUC, it would increase the company's full-year revenue by 32% when compared to 2024.
York's management team has also incorporated bolt-on acquisitions as a source of steady growth. Since demand for water and wastewater services remains fairly consistent from one year to the next, the company's operating cash flow is typically transparent and predictable. This predictability comes in handy when adding to its existing services.
Yet it's York's historically cheap valuation that may be most attractive to investors. York Water stock is currently trading at a forward price-to-earnings (P/E) multiple of 19.4, which marks a 34% discount to its average forward P/E over the last half-decade.
