I have invested in dividends for 20 years. These stocks are my top dividend compounders of all time

In the world of investing, dividends have long been a popular way to earn income alongside growth opportunities with stocks. More recently, the world of high-yield stocks has raised the profile of the extreme gains achievable through dividend income. 

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While getting into the world of high-yield stock investing likely isn’t for everyone, the good news is that there are still plenty of dividend investments worth considering. As someone who has invested in dividend earners for years, picking the right stocks isn’t easy, but once you do, you can sit back and watch money roll in. 

Why Divided Compounders Beat Almost Everything Else

There is no question that this market is obsessed with fast growth and flashy returns, something you can learn just by going online and looking at websites like Reddit and other trading forums. The thing is, dividend compounders win by doing the opposite of flashy, as it rewards patience. 

Instead of chasing the hype, the best dividend earners forget it and quietly reinvest profits through DRIP. The longer you hold these dividend earners, the more I have seen firsthand how powerful compounding can be, as each reinvested dividend buys more shares, which in turn pay even more dividends.

This is a snowball effect, and it’s one that I have taken years to truly understand and build, but once it starts rolling, you don’t want to stop anything. In my experience, these companies can be the backbone of any portfolio and have been among my favorite dividend payers. 

Johnson & Johnson

If I had to choose just one company that helps me sleep well at night, it would be Johnson and Johnson (NYSE:JNJ). I’ve had shares since my early investing days, and it’s been a steady performer through most market storms. 

While its current dividend yield is low at 2.6%, it’s hard to ignore a quarterly dividend of $1.3000 per share that was last paid out in September and is also planned again for December. It’s a nice little payday and something I like to consider as passive income at this point. 

Johnson & Johnson is never going to be a flashy stock, but it’s a global healthcare leader, and this is a sector that isn’t going away anytime soon. Over time, stable earnings have fueled an impressive streak of dividend growth, and it’s raised its payout just about every year since 1963. 

PepsiCo

In the world of soft drinks, PepsiCo (NASDAQ:PEP) needs no introduction as one of the two titans of its industry. This is one of my favorite compounders of all time, and while Pepsi isn’t seeking headlines, it’s also a business that has remained, and remains, what I like to consider a nice little cash machine. 

Between Pepsi itself and big-name brands like Mountain Dew, Frito-Lay, and Gatorade, Pepsi is the power behind a lineup of brands that are dominant on supermarket shelves all over the world. 

What’s most important is that Pepsi’s dividend streak has grown over 52 years, which is one of the most notable for any big-name stock. Even as consumer tastes have shifted toward more healthy options, the company has diversified itself to help stay at the top of consumer mindshare. Better yet, Pepsi has never stopped returning cash to shareholders. 

With a current dividend yield of 3.70%, Pepsi is a quarterly dividend payer, and its most recent September payout was $1.4225 per share. It’s hard to argue with that number, and while a major bump isn’t currently expected for 2026, I would be okay with that for right now. 

Texas Instruments

The manufacturer of my favorite calculator in school, Texas Instruments (NASDAQ: TXN), is a major semiconductor name in a currently volatile industry. Thankfully, the world still loves its calculators and semiconductors, so adding TXN to my portfolio a decade ago has paid off. 

The company’s current dividend yield is 3.34% and its most recent payout in September offered $1.3600 per share. However, I’m looking forward to November, where there is a nice little bump expected to $1.4200 a share. It’s not a ton of money, but it’s also money I can count on to help feed right back into buying more shares. 

My reasoning is pretty simple, and that’s discipline with Texas Instruments. I’m not someone who is chasing high-risk, and TXN isn’t chasing high-risk chip innovation either. This is a company focusing on durable chips that go into cars and factory automation, which is why it’s been able to keep profits strong and cash flowing. 

Best of all, Texas Instruments has increased its dividend by more than 600% over the past decade, and who can say no to that? After 20-plus years in the market, I’ve learned that you don’t chase wealth from trends, but from owning great companies that are great businesses, so you get paid to sit around and wait for them to report their successes. 

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