Dividend-paying stocks are one of the best ways to play the market in the long run. Most of the companies that focus on their dividend as a way of generating shareholder returns have either been around for a very long time, are operating in industries that are absolutely vital to the broader economy, or some combination of both.
It's an incredibly low-stress way to invest. You buy shares, you set up a dividend reinvestment plan (DRIP), and you're set to watch your wealth compound into a revenue stream for as long as you care to.
The three stocks highlighted here might not grab headlines like the latest and greatest tech stock, but the modern world is dependent upon the products and services they provide.
And that makes them great candidates to add to your dividend portfolio.
Image source: Getty Images.
Clean water, clean profits
Pentair (PNR +0.41%) is a Dividend King, one of a select few dividend stocks that have consistently raised their dividend each year for 50 years in a row. Many of the companies on that list are engaged in important, if not the most glamorous, industries and Pentair is no different.
The company is involved in the water industry, selling products for moving and cleaning water for human use, so it's most certainly important. It sells everything from a humble home filter for your tap water to industrial-size water purification equipment, and everything in between.
Like most long-term dividend payers, Pentair isn't lighting the world on fire in terms of growth, but it is growing steadily across the board.
Per its fourth-quarter and full-year 2025 results, Pentair's sales climbed 2% over 2024, its adjusted operating income grew 10%, and its adjusted earnings per share (EPS) were up 14% year over year. On top of that, it's profitable with a net margin of 15.55%.
Its yield is fairly small, 1% at current prices, but it has grown its dividend regularly for exactly 50 years and can add some stability to your portfolio in a volatile market. Finally, with a payout ratio of 25.45% it has plenty of room to continue growing its dividend for a long time to come.
NYSE: PNR
Key Data Points
Pour yourself a cup of Texas tea
Next is Enterprise Products Partners (EPD +1.12%), which isn't technically a stock that pays a dividend, it's a master limited partnership that pays a distribution. In practice it will function similarly to a dividend stock and there are some tax differences, but you can set it up with a DRIP.
Enterprise is a midstream company that operates a network of 50,000 miles of oil and natural gas pipelines and storage facilities across North America to transport the raw fossil fuels powering the globe to ports and refineries.
The company did see its revenue fall 6.4% in 2025, but it has still maintained an average return on invested capital of 12% over the last decade for its shareholders. And, 2025 saw Enterprise's distributable cash flow (DCF) and operational DCF grow 1.3% and 0.5% over 2024 resepectively.
Enterprise pays a distribution that yields 5.9% at current prices and it has raised that dividend every year for the past 27 years, which makes it over halfway to Dividend King status.
Its dividend coverage ratio sits at 1.7x which means the distribution is safe, incredibly so. At 1.7 it generates almost double the cash it needs to meet its distribution payments.
That means Enterprise is likely to keep paying its fantastic5.9% yield distribution and raising it for a long time to come.
NYSE: EPD
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Charm city classic
Let's round this out with a medium option between Pentair's low risk and low yield and Enterprise's relative higher risk and higher reward.
T. Rowe Price Group (TROW +1.46%) has been providing financial services to the Baltimore area and beyond since 1937. And it pays a dividend that it has consistently raised for 40 years in a row, which puts it just shy of Dividend King territory.
NASDAQ: TROW
Key Data Points
It's growing steadily as well, with its revenue for 2025 up 3% over 2024. Its EPS for 2025 grew 4.1% over 2024 to $9.72. And the company maintains strong profitability with a net margin of 30.19%. Finally, it has a solid balance sheet with cash reserves of $3.38 billion to total debt of about $450 million.
At current prices, its dividend yields 5.3% and its current payout ratio of 54.98% is perfectly healthy with plenty of room for T. Rowe Price to continue growing its dividend until it becomes a Dividend King and beyond. Which, if it keeps its streak alive, should happen close to the company's 100th birthday. Give it a look for a high-yielding dividend with less risk than many others.
