I have invested in dividends for 15 years—These dividend aristocrats built my passive income stream

The best way to navigate the current market uncertainty is to invest in stocks that have seen the ups and downs and thrived through it all. As a long-term investor, I think the best stocks are dividend stocks that have a stable balance sheet, a strong yield, and a history of rewarding shareholders. Markets have […] The post I have invested in dividends for 15 years—These dividend aristocrats built my passive income stream appeared first on 24/7 Wall St..

Jun 3, 2025 - 18:48
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I have invested in dividends for 15 years—These dividend aristocrats built my passive income stream

Key Points

  • These Dividend Aristocrats are rock-solid businesses with a steady cash flow.

  • They’ve never disappointed me and can generate a reliable paycheck each quarter.

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The best way to navigate the current market uncertainty is to invest in stocks that have seen the ups and downs and thrived through it all. As a long-term investor, I think the best stocks are dividend stocks that have a stable balance sheet, a strong yield, and a history of rewarding shareholders. Markets have remained largely flat this year and the only way to make money is to buy stocks that can generate passive income. 

While prior dividends offer no guarantee about future dividend increases, these companies have the funds to continue rewarding shareholders. I’ve built a portfolio of Dividend Aristocrats which haven’t disappointed me for 15 years. Dividend Aristocrats are the companies that have raised their dividends in each of the past 25 consecutive years. I’ve invested in these companies for 15 years and believe they offer the most reliable paychecks. 

Johnson & Johnson 

A dividend aristocrat, Johnson & Johnson (NYSE: JNJ) has raised dividends for 63 consecutive years. The healthcare giant has a global presence and is tariff-resistant. It has a dividend yield of 3.38% and I consider JNJ’s dividend to be safe despite the market volatility.

One of the biggest industry players, Johnson & Johnson generates the majority of its revenue from medical technology and innovative pharmaceuticals. It reported sales of $89 billion in 2024 and a profit of over $14 billion.

For the first quarter, it saw a 2.4% year-over-year jump in sales and it has an impressive portfolio of drugs that can continue generating revenue. Its drug pipeline includes 106 products out of which 40 are in late-stage trials. The company reported a free cash flow of $19.84 billion in 2024 and $3.38 billion in the first quarter of 2025. 

Exchanging hands for $154, JNJ stock is up 7.30% year-to-date and has a dividend payout ratio of 49.35%. The company has had to deal with the talc lawsuit but I think it will be able to handle the settlement. Johnson & Johnson has a massive market and a range of products that will always remain in demand. I believe this is one dividend stock that will not disappoint for another 15 years. 

Coca-Cola 

Coke (NYSE: KO) is one of the most recognized beverage brands in the world and it is a top Dividend Aristocrat. The company has a wide range of products and has entered into the healthy drinks market to meet the changing consumer demands. Exchanging hands for $71.12, the stock is up 15% year-to-date and 13% in 12 months. Warren Buffett’s favorite stock, Coca-Cola has a dividend yield of 2.87%. It has raised dividends for 63 consecutive years. 

Despite the tariff situation, the management is optimistic about the future and believes that they can handle the situation. Since the company has a concentrate facility in the U.S., it will be less impacted by tariffs, but it also has 950 production facilities globally which will allow it to change things for the benefit of the company. 

Coca-Cola also enjoys pricing power and has consumer loyalty. This makes it a resilient business. In the recent quarter, the company saw 6% organic sales growth and has reaffirmed the full-year guidance for organic growth in the range of 5% to 6%. 

The management has a strong future outlook, the stock is considerably up this year and the dividend is attractive. What’s not to like about Coca-Cola stock?

Exxon Mobil

Another reliable dividend stock is the energy giant Exxon Mobil Corp. (NYSE: XOM). The oil and gas company is a low-risk, steady-return investment. The company is a dividend aristocrat and has increased dividends for 43 consecutive years. It enjoys a dividend yield of 3.83%. XOM stock has a payout ratio of 51.80% which means there’s a possibility of a higher dividend payout in the coming years.

 

Trading for $103, the stock is down 3.76% year-to-date. It recently lost value due to the tariffs and the drop in crude oil prices. The largest oil company in the U.S., Exxon Mobil has a solid upstream business that is reliable on the volatility of asset prices. However, the company owns assets that continue to generate solid numbers. 

In the first quarter, it reported a 20% jump in upstream production and beat EPS estimates. ExxonMobil generated free cash flow of $8.8 billion in the quarter, up 10% year-over-year. While lower oil prices hurt the business, the company is resilient and has seen several market ups and downs. 

The management believes it can generate over $20 billion in earnings by 2030. XOM stock hasn’t disappointed me for 15 years and I am certain it will not disappoint me in the coming years too. 

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