Companies that continually raise dividends can make you quite wealthy over the long haul.
Ironically, the most likely path to getting rich in the stock market is usually quite boring. It requires consistency, patience, and picking the right stocks that can deliver over the course of decades.
But what do the right stocks look like? It’s worth considering dividend stocks, or, more specifically, companies that consistently increase their dividends. Historical data show that dividend growers and initiators have outperformed other types of stocks over the long term.
Companies that raise their dividends tend to have:
- Durable profits due to competitive advantages.
- Prudent management that keeps the company in good financial standing.
- Growth opportunities for higher sales and earnings over time.
Here are five blue chip dividend stocks with long track records of consistent dividend growth. Owning them as part of a diverse portfolio and reinvesting the dividends could help anyone become a millionaire over time.
1. Microsoft
The technology sector isn’t generally known for dividends, but Microsoft (MSFT 1.51%) is a glaring exception. The company has raised its dividend for 23 consecutive years. That’s an impressive feat given its constant investments in innovation, including artificial intelligence (AI) and cloud computing. Microsoft has a diverse business, with a strong presence across consumer and enterprise software, infrastructure, gaming, and more.
Today’s Change
(-1.51%) $-7.95
Current Price
$517.81
Key Data Points
Market Cap
$3849B
Day’s Range
$515.10 – $529.32
52wk Range
$344.79 – $555.45
Volume
34M
Avg Vol
21M
Gross Margin
68.76%
Dividend Yield
0.01%
Having such a far-reaching range of products and services means that there is no shortage of growth opportunities. Technology has become increasingly important to society over the past few decades, and that trend will likely continue as AI hits its stride. The stock’s 0.6% dividend yield doesn’t stand out, but the company’s long-term growth prospects should translate into sizable dividend increases for the foreseeable future.
2. McDonald’s
Everyone eats, and McDonald’s Corporation (MCD 1.32%) has turned that basic need into a global empire with some innovation and Americana flair. The company revolutionized the restaurant industry decades ago with franchising, becoming a real estate juggernaut with a footprint spanning more than 44,000 locations across 100 countries today.
McDonald’s generates steady revenue from royalties and fees, making the stock a fantastic dividend grower. Management has raised the dividend for 49 consecutive years, putting it on the doorstep of a pretty exclusive club. McDonald’s should continue to deliver steady growth amid a rising global population, which could make investors quite wealthy over 20 to 30 years.
3. Automatic Data Processing
Managing human resources is a crucial task, but one that few companies can accomplish without some help. Automatic Data Processing (ADP 0.47%), or ADP for short, sells a range of cloud-based products and services that enable companies to manage their employees. Its offerings cover a range of complex services, such as payroll, training, tax, legal, and regulatory compliance. ADP is a trusted name in the enterprise world and has a global footprint.
Automatic Data Processing
Today’s Change
(-0.47%) $-1.23
Current Price
$260.30
Key Data Points
Market Cap
$105B
Day’s Range
$258.19 – $262.07
52wk Range
$258.19 – $329.93
Volume
2.6M
Avg Vol
1.8M
Gross Margin
50.41%
Dividend Yield
0.02%
The company’s sensitivity to the labor market can affect its business performance, but the stock’s 50-year dividend growth streak is ample evidence that ADP’s management team can navigate challenging times. People are crucial to almost every company, so ADP probably won’t go away, even if robots someday take over some tasks from human workers. Look for this proven compounder to continue doing its thing.
4. Sherwin-Williams
Paint and coatings are great products to sell, as people repaint their homes and other things either voluntarily or over time as the previous coat wears down. Sherwin-Williams (SHW 0.85%) is a renowned industry leader, with a strong store footprint serving do-it-yourself homeowners and a sterling brand reputation among professional contractors who depend on the company’s products as a reflection of their work.
Sherwin-Williams is also technology-proof. People will still be painting and coating things 100 years from now. Impressively, the company still has a modest dividend payout ratio — just 28% of 2025 earnings estimates — despite raising its dividend for 46 consecutive years. So, don’t dismiss the stock’s 0.9% dividend yield, because Sherwin-Williams will likely continue increasing the dividend year in and year out.
5. Walmart
Consumer spending is the most significant contributor to the U.S. economy. Walmart (WMT 1.03%) has firmly entrenched itself as the country’s largest retailer. Approximately 90% of Americans live within a short drive of a Walmart store. People go to Walmart for groceries, clothes, toys, and almost anything else they might want. The company has also embraced e-commerce, successfully leveraging its supply chain to become a leading online retailer.
Today’s Change
(-1.03%) $-1.05
Current Price
$101.18
Key Data Points
Market Cap
$807B
Day’s Range
$100.18 – $102.09
52wk Range
$79.81 – $109.58
Volume
20M
Avg Vol
17M
Gross Margin
24.39%
Dividend Yield
0.01%
While people tend to pull back on discretionary spending when the economy slows, Walmart’s reputation for low prices continues to attract shoppers during good and bad times. Walmart has amassed more than five decades of uninterrupted annual increases, and the dividend payout ratio is still below 40% of 2025 earnings estimates. That makes Walmart a legendary dividend stock worth buying and holding.