10 Greatest Shares For Compounding Dividends – Positive Dividend

Article up to date on December nineteenth, 2025 by Nathan ParshSpreadsheet information up to date every day

Earnings traders on the lookout for compounding dividends over time, ought to take into account high-quality dividend development shares. These shares have the flexibility to lift their dividends over time, thereby unleashing the ability of compounding dividends.

That is why Positive Dividend typically recommends the Dividend Aristocrats, a choose group of 69 S&P 500 shares with 25+ years of consecutive dividend will increase.

They’re the ‘better of the most effective’ dividend development shares. The Dividend Aristocrats have a protracted historical past of compounding dividends for shareholders.

There are at the moment 66 Dividend Aristocrats. You’ll be able to obtain an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics that matter akin to dividend yields and price-to-earnings ratios) by clicking the hyperlink under:

 

Disclaimer: Positive Dividend shouldn’t be affiliated with S&P World in any manner. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Positive Dividend’s personal overview, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s primarily based. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.

Dividend Aristocrats should have 25+ years of rising dividends, be a member of the S&P 500 Index, and meet sure minimal measurement and liquidity necessities.

Because of their sturdy dividend historical past and sturdy aggressive benefits, the Dividend Aristocrats are an amazing place to begin on the lookout for compounding dividends.

This text will clarify the idea of compounding dividends in larger element, in addition to an inventory of the highest 10 shares for compounding dividends proper now.

Desk of Contents

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What Is Compounding Dividends?

Put merely, compounding is the act of incomes curiosity on previously-earned curiosity. On this manner, traders may consider compounding just like the snowball impact.

While you push a small snowball down a hill, it constantly picks up snow. When it reaches the underside of the hill it’s a large snow boulder.

The snowball compounds throughout its journey down the hill. The larger it will get, the extra snow it packs on with every revolution.

The snowball impact explains how small actions carried out over time can result in massive outcomes.

In the identical manner, investing in high-quality dividend development shares can generate giant quantities of dividend revenue over lengthy intervals of time.

That’s as a result of dividend development shares are likely to pay rising dividends yearly. After which you may reinvest these rising dividends to buy extra shares every year.

This ends in a rise within the whole variety of shares you personal, in addition to a rise within the dividend per share, for a strong compounding impact.

Right here’s the ability of compound curiosity:

Think about you invested $1 that compounded at 1% a day. In 5 years your $1 would develop to over $77 million. You’ll be the richest individual on the planet by yr 7.

Needless to say compounding shouldn’t be a get wealthy fast scheme. It takes time – and plenty of it. There aren’t any investments that compound at 1% a day in the true world.

The inventory market has compounded wealth (adjusting for inflation) at ~7% a yr over the long term. At this charge an funding within the inventory market has traditionally doubled each 10.4 years.

The ten Greatest Shares For Compounding Dividends

The next 10 shares are our top-ranked shares for compounding dividends, primarily based on a qualitative evaluation of dividend historical past, present yield, and payout ratios.

All of the shares within the listing under have present yields above 2%, not less than 25 consecutive years of dividend will increase, and payout ratios under 70%.

As well as, the ten greatest shares for compounding dividends under have Dividend Danger Scores of A or B.

This mix is prone to lead to sustained dividend will increase over time, thereby compounding dividends to create long-term wealth.

The shares are ranked so as of their 5-year dividend development charge, from lowest to highest.

#10: T. Rowe Value Group Inc. (TROW)

Payout Ratio: 52%
Years of Dividend Will increase: 39
5-Yr Dividend Development Price: 3.

T. Rowe Value Group, based in 1937 and headquartered in Baltimore, MD, is likely one of the largest publicly traded asset managers. The corporate offers a broad array of mutual funds, sub-advisory companies, and separate account administration for particular person and institutional traders, retirement plans, and monetary intermediaries. T. Rowe Value has a market capitalization of about $22 billion and had property beneath administration (AUM) of almost $1.8 trillion as of the tip of Q3 2025.

T. Rowe Value introduced third-quarter outcomes on October thirty first, 2025.

Supply: Investor Assets

Income for the quarter grew 5.6% to $1.89 billion, although this was $10 million lower than anticipated. Adjusted earnings-per-share of $2.81 in contrast favorably to $2.57 within the prior yr and was $0.27 above estimates.

Throughout the quarter, AUMs totaled $1.77 trillion, which represented development of 5.4 % year-over-year, however a decline of 1.1% sequentially. Market appreciation of $89.1 billion was offset by web money outflows of $7.9 billion. Working bills of $1.25 billion elevated 6.7% year-over-year and 0.4% quarter-over-quarter.

Click on right here to obtain our most up-to-date Positive Evaluation report on TROW (preview of web page 1 of three proven under):

#9: AbbVie (ABBV)

Payout Ratio: 65%
Years of Dividend Will increase: 55
5-Yr Dividend Development Price: 5.0%

AbbVie is a biotechnology firm targeted on growing and commercializing medication for immunology, oncology, and virology. AbbVie was spun off by Abbott Laboratories in 2013. The corporate has a relatively quick stand-alone historical past. However, AbbVie has develop into one of many largest gamers within the biotechnology trade, particularly following the closing of its acquisition of previously impartial pharma firm Allergan.

On October thirty first, 2025, AbbVie introduced that it was elevating its quarterly dividend 5.5% to $1.73 per share.

That very same day, the corporate reported third-quarter outcomes. Income grew 9% to $15.8 billion, which was $190 million greater than anticipated. Adjusted earnings-per-share of $1.86 in contrast unfavorably to $3.00 within the prior yr, however this was $0.8 above estimates.

AbbVie’s revenues have been positively impacted by compelling development from a few of its main medication, together with Skyrizi and Rinvoq, whereas Humira gross sales declined by 55% as a result of competitors from biosimilars and market share losses. The revenue decline was largely as a result of milestone bills and acquisitions.

AbbVie’s steering for 2025’s adjusted earnings-per-share is $10.61 – $10.65 on a per-share foundation. Because of this earnings per share will probably be up in comparison with 2024, reversing the latest down development.

Click on right here to obtain our most up-to-date Positive Evaluation report on ABBV (preview of web page 1 of three proven under):

#8: The Coca-Cola Firm (KO)

Payout Ratio:68%
Years of Dividend Will increase: 63
5-Yr Dividend Development Price: 5.0%

Coca-Cola is likely one of the largest beverage corporations on the planet, because it owns or licenses greater than 500 distinctive non-alcoholic manufacturers. The $300 billion firm has operations in additional than 200 international locations worldwide. The corporate’s merchandise are served about 2 billion instances every day, producing annual income of near $48 billion. The corporate’s portfolio contains 30 manufacturers that generate not less than $1 billion in annual income.

Supply: Investor Presentation

Coca-Cola launched third-quarter earnings outcomes on October twenty first, 2025, with outcomes that have been above estimates on each the highest and backside strains. Adjusted earnings-per-share of $0.82 was $0.04 higher than anticipated whereas income of $12.5 billion was $90 million greater than anticipated.

Income positive aspects have been supported by a 6% enchancment in worth/combine whereas focus gross sales have been unchanged. Focus gross sales have been 1 level behind case quantity as a result of timing of focus shipments. Natural income grew 6%, which was 1.2% higher than anticipated.

The working margin expanded 120 foundation factors to 31.9%, which was 40 foundation factors greater than projected. Positive factors have been pushed by natural income development and efficient price administration, partially offset by a rise in marking funding and foreign money headwinds.

Click on right here to obtain our most up-to-date Positive Evaluation report on KO (preview of web page 1 of three proven under):

#7: Sonoco Merchandise Firm (SON)

Payout Ratio: 37%
Years of Dividend Will increase: 49
5-Yr Dividend Development Price: 5.0%

Sonoco Merchandise Firm offers packaging, industrial merchandise, and provide chains companies to its prospects. The markets that use the corporate’s merchandise embrace these within the home equipment, electronics, beverage, building and meals industries. Sonoco Merchandise is now composed of two main segments, Client Packaging, and Industrial Packaging, with all different companies listed as “All Different”.

Sonoco Merchandise reported third-quarter outcomes on October twenty second, 2025.

Supply: Investor Presentation

Income for the quarter surged 58% to $2.13 billion, although this was $20 million lower than anticipated. Adjusted earnings-per-share of $1.92 in contrast favorably to $1.49 within the prior yr, however this was $0.01 under estimates.

As with prior quarters, income and earnings-per-share benefited from the corporate’s buy of Eviosys in December of 2024.

Income for Client Packing was up 117% to $1.44 billion, principally as a result of contributions from Eviosys. Outcomes have been additionally positively impacted by worth will increase that have been applied to offset tariffs.

Industrial Paper Packing gross sales have been unchanged at $585 million as worth will increase have been offset by weaker quantity ensuing from two plant divestitures in China final yr.

All Different grew 1% to $108 million as a result of quantity positive aspects in temperature-assured packaging.

Click on right here to obtain our most up-to-date Positive Evaluation report on SON (preview of web page 1 of three proven under):

#6: H2O America (HTO)

Payout Ratio: 57%
Years of Dividend Will increase: 57
5-Yr Dividend Development Price: 6.0%

H2O America, previously generally known as SJW Group, is a water utility firm that produces, purchases, shops, purifies and distributes water to customers and companies in California, Texas, Connecticut, and Maine. H2O America has a small actual property division that owns and develops properties for residential and warehouse prospects in California and Tennessee.

Supply: Investor Relations

H2O America reported third-quarter outcomes on October twenty eighth, 2025. Income for the interval grew 6.9% to $240.6 million and topped expectations by $2.1 million. Earnings-per-share of $1.27 was up from $1.18 in the identical interval of the prior yr and was $0.09 forward of estimates.

Water charges added $21.2 million to outcomes whereas increased buyer utilization contributed $700K. Working bills elevated 6% to $175.9 million as pensions prices, salaries and wages, and inflationary will increase did impression the enterprise.

H2O America expects to take a position greater than $2 billion in capital over the subsequent 5 years in its wastewater operations. The corporate invested almost $358 million via the tip of the third-quarter.

The corporate additionally famous it had acquired approval for a number of charge instances in the course of the quarter in addition to lately submitted charge instances to regulators.

Click on right here to obtain our most up-to-date Positive Evaluation report on HTO (preview of web page 1 of three proven under):

#5: Johnson & Johnson (JNJ)

Payout Ratio: 48%
Years of Dividend Will increase: 63
5-Yr Dividend Development Price: 6.0%

Johnson & Johnson is a diversified well being care firm and a frontrunner in modern medicines and medical gadgets Johnson & Johnson was based in 1886 and employs almost 138,000 folks all over the world. The corporate is projected to generate greater than $93 billion in income this yr.

On October 14th, 2025, Johnson & Johnson reported third-quarter outcomes for interval ending September thirtieth, 2025.

Supply: Investor Presentation

For the quarter, income grew 6.7% to $24 billion, which beat estimates by $240 million. Adjusted earnings-per-share of $2.80 in comparison with $2.42 within the prior yr and was $0.04 higher than anticipated.

Income for Progressive Medicines grew 6.8%. Infectious Illness decreased 0.9% on a reported foundation as development in Edurant, which is used to deal with HIV, was greater than offset by weak point in the remainder of the portfolio. Oncology grew 21.3% as a result of ongoing excessive demand for Darzalex, which treats a number of myeloma, and continued excessive demand in a number of different merchandise.

Immunology was down 9.8%. Weak point for Stelara, which treats immune-mediated inflammatory illnesses, was as soon as once more as a result of biosimilar competitors. Offsetting this was ongoing market share positive aspects for Tremfya, which treats power inflammatory situations akin to plaque psoriasis and arthritis. Remicade, which treats autoimmune illnesses akin to Crohn’s illness, benefited from a one-time favorable affected person combine adjustment.

Income for MedTech grew 6.8%. Cardiovascular continues to provide wonderful outcomes, as gross sales have been increased by 12.6% as a result of new merchandise. Surgical procedure had gross sales development of 4.4% as positive aspects in biosurgery and endocutters was offset by harder competitors in power.

Orthopaedics returned to development, with income enhancing 3.8% as a result of new merchandise and a rise in demand for knees and hips merchandise. The corporate introduced that it plans to separate its orthopedics enterprise right into a standalone firm known as “DePuy Synthes” throughout the subsequent 18 to 24 months.

Click on right here to obtain our most up-to-date Positive Evaluation report on JNJ (preview of web page 1 of three proven under):

#4: PepsiCo Inc. (PEP)

Payout Ratio: 70%
Years of Dividend Will increase: 53
5-Yr Dividend Development Price: 6.0%

PepsiCo is a world meals and beverage firm that generates annual gross sales of almost $92 billion. The corporate has a formidable portfolio of manufacturers.

Supply: Investor Relations

This contains main manufacturers akin to Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana, and Quaker meals. The corporate has greater than 20 $1 billion manufacturers.

On October ninth, 2025, PepsiCo reported third-quarter outcomes, with income rising 2.7% to $23.9 billion, which was $90 million greater than anticipated. Adjusted earnings-per-share of $2.29 was down from $2.31 within the prior yr, however $0.03 forward of estimates. Foreign money alternate did decrease outcomes by 2% for adjusted earnings-per-share.

Natural gross sales have been up 1.3% for the interval. Meals and beverage volumes fell 1% year-over-year. PepsiCo Drinks North America had natural development of two% regardless of a 3% decline in quantity.

PepsiCo Meals North America declined 3%, totally on account of divestitures. Meals quantity was decrease by 4%.

Worldwide Drinks fell 1%, principally as a result of decrease quantity. Revenues in Europe/Center East/Arica have been up 5.5% whereas Latin America improved 4%, and Asia Pacific elevated 1%.

Click on right here to obtain our most up-to-date Positive Evaluation report on PEP (preview of web page 1 of three proven under):

#3: McCormick & Firm (MKC)

Payout Ratio: 60%
Years of Dividend Will increase: 39
5-Yr Dividend Development Price: 7.0%

McCormick & Firm produces, markets, and distributes seasoning mixes, spices, condiments and different merchandise to prospects within the meals trade. McCormick was based in 1889 by Willoughby M. McCormick and controls ~20% of the worldwide seasoning and spice market.

McCormick introduced third-quarter outcomes on October seventh, 2025.

Supply: Investor presentation

Income elevated 2.4% year-over-year to $1.72 billion, which beat estimates by $10 million. Adjusted earnings-per-share of $0.85 in comparison with $0.83 within the prior yr and was $0.03 higher than anticipated.

Quantity and blend improved 1.2% whereas pricing was up 0.6%. The Client section improved 2.6% for the interval as quantity and blend elevated 2.2% whereas increased costs added 0.4%. Natural development for the Americas and EMEA areas improved 2.7% and 4.4%, respectively, whereas Asia/Pacific decreased 0.8%.

Taste Options grew 0.6% from the prior yr as a 0.9% contribution from pricing was partially offset by a 0.3% lower in quantity. Asia/Pacific was increased by 6.3% organically, the Americas improved 0.9%, and EMEA was decrease by 3.1%.

Click on right here to obtain our most up-to-date Positive Evaluation report on MKC (preview of web page 1 of three proven under):

#2: Automated Information Processing (ADP)

Payout Ratio: 62%
Years of Dividend Will increase: 51
5-Yr Dividend Development Price: 9.0%

Automated Information Processing is likely one of the largest enterprise companies outsourcing corporations on the planet, with greater than 700,000 company prospects. The corporate offers payroll companies, human assets expertise, and different enterprise operations. The corporate generates almost $22 billion of annual revenues.

Automated Information Processing launched Q1 earnings outcomes on October twenty ninth, 2025.

Supply: Investor Presentation

Adjusted earnings-per-share of $2.49 was $0.05 higher than anticipated whereas income grew 7.2% to $5.18 billion and beat estimates by $50 million.

Employer Companies income improved 7% to $3.49 billion whereas section earnings have been up 6% to $1.23 billion. PEO Service income additionally elevated 7% to $1.69 billion, although section earnings have been all the way down to $219 million.

Automated Information Processing additionally has raised its dividend 10.4% to $1.70, extending the corporate’s dividend development streak to 51 consecutive years.

Click on right here to obtain our most up-to-date Positive Evaluation report on ADP (preview of web page 1 of three proven under):

#1: Aflac Inc. (AFL)

Payout Ratio: 33%
Years of Dividend Will increase: 44
5-Yr Dividend Development Price: 10.0%

Aflac Inc, which was based in 1955, is the world’s largest underwriter of complement most cancers insurance coverage. The diversified insurance coverage company additionally offers accident, short-term incapacity, vital sickness, dental, imaginative and prescient, and life insurance coverage. Practically 70% of pretax earnings are from Japan, with the remaining coming from the U.S. The corporate generated $5.4 billion of revenue final yr.

Aflac reported third-quarter outcomes on November 4th, 2025.

Supply: Investor Presentation

Income was up almost 61% to $4.74 billion, which was $260 million greater than anticipated. Internet earnings of $1.6 billion, or $3.08 per share, in comparison with a web earnings lack of $93 million, or -$0.17 per share within the prior yr. Nonetheless, this contains funding positive aspects of $275 million, that are excluded from adjusted earnings. On an adjusted foundation, earnings-per-share equaled $2.49 in comparison with $2.16 in Q3 2024 and was $0.71 above estimates.

The achieve in income was primarily as a result of funding positive aspects in comparison with funding losses in the identical interval of the earlier yr. In U.S. {dollars}, Aflac Japan’s quarterly web earned premiums decreased 2.7% to $1.7 billion whereas Aflac U.S. web earned premiums improved 2.5% to $1.5 billion. The corporate’s adjusted e book worth of $53.33 in comparison with $51.21 within the prior yr.

Aflac repurchased greater than 9 million shares at a mean worth of $108 in the course of the quarter. The corporate’s remaining repurchase authorization is for 121.6 million shares, or a couple of quarter of its excellent share depend.

On November eleventh, 2025, Aflac introduced that it was elevating its quarterly dividend by 5.2%, growing the corporate’s dividend development streak to 44 years.

Click on right here to obtain our most up-to-date Positive Evaluation report on AFL (preview of web page 1 of three proven under):

Closing Ideas

Excessive-quality dividend development shares can construct long-term wealth for shareholders. A serious purpose for that is the mix of dividend development and dividend reinvestment.

The ten shares listed within the article signify among the greatest shares for dividend compounding.

Positive Dividend maintains related databases on the next helpful universes of shares: