Johnson & Johnson shares surged 46.3% in 2025 to all-time highs above $212 after bottoming near $141 in April.
AbbVie yields 6.77% and has grown its dividend at a 10-12% annual rate over the past five years.
Verizon trades at an 8x forward P/E with $19.5B-$20.5B free cash flow guidance supporting a 6.77% yield.
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
Building wealth through dividends requires more than chasing high yields. The path to “getting rich” combines meaningful current income with consistent dividend growth, backed by sustainable business fundamentals. These five stocks deliver that combination, each offering distinct advantages for compounding wealth over time.
Procter & Gamble earns its place as a 68-year Dividend King, having increased its payout annually since 1957. The consumer staples giant recently raised its quarterly dividend to $1.06, maintaining a 2.93% yield while delivering consistent growth averaging 6% annually over the past five years.
Q1 fiscal 2026 results demonstrated why reliability matters: EPS of $1.95 beat estimates of $1.90, while revenue of $22.40 billion exceeded expectations. Organic sales growth of 2% may seem modest, but reflects steady demand for household essentials like Tide, Pampers, and Gillette—products consumers buy regardless of economic conditions.
With a profit margin of 19.7% and ROE of 31.9%, PG generates the cash flow needed to sustain its dividend while returning $3.8 billion to shareholders through dividends and buybacks in the latest quarter. The 21x P/E reflects the premium investors pay for predictability, but for dividend investors seeking stability, that premium is justified.
Coca-Cola’s 62-year dividend growth streak proves that owning the world’s most recognized beverage brand generates reliable income. The quarterly dividend of $0.50 provides a 2.92% yield, with recent increases averaging 5.2% year-over-year.
Q3 2025 results showed the power of KO’s global distribution network: EPS of $0.86 crushed estimates of $0.78, while revenue of $12.46 billion beat expectations. Organic revenue growth of 6% reflected strong international demand, and the company gained market share in nonalcoholic beverages despite intense competition.
Operating income surged 59%, demonstrating improved efficiency. With a 27.3% profit margin and 42.4% ROE—the highest among these five stocks—Coca-Cola converts brand loyalty into shareholder returns. The 23x P/E reflects confidence in the company’s pricing power and ability to navigate commodity cost pressures.
Johnson & Johnson combines dividend aristocracy with impressive capital appreciation. The healthcare giant’s quarterly dividend of $1.27 yields 2.42%, but the total return story is compelling: shares have surged 46.3% in 2025, reaching all-time highs above $212 after bottoming near $141 in April.
Q3 2025 results justified the rally: EPS of $2.80 beat estimates of $2.76, while revenue of $23.99 billion represented 6.8% growth. Management raised full-year sales guidance to $93.7 billion, reflecting confidence in pharmaceutical franchises like Stelara and Darzalex offsetting consumer health headwinds.
With a 27.3% profit margin, 33.6% ROE, and modest 20x P/E, JNJ offers the rare combination of growth and value. The 62-year dividend increase streak survived the 2008 financial crisis and COVID-19 pandemic, demonstrating the resilience healthcare investors prize. For investors who bought at the April lows, the total 2025 return approaches 49% when including dividends.
AbbVie delivers the highest current income on this list with a 6.77% yield, recently raising its quarterly dividend 5.5% to $1.73. This aggressive payout reflects management’s confidence despite navigating Humira’s patent cliff.
Q3 2025 results showed the transition is working: EPS of $1.86 beat estimates as immunology and neuroscience franchises gained traction. Management raised full-year guidance to $10.61-$10.65 EPS, signaling that newer drugs like Rinvoq and Skyrizi are offsetting biosimilar competition.
The forward P/E of 16x and PEG ratio of 0.401 suggest the market undervalues ABBV’s growth prospects. While the 4% profit margin reflects heavy R&D investment, the 138% ROE (distorted by negative book value from acquisitions) demonstrates capital efficiency. With a market cap of $394.69 billion, AbbVie has increased its dividend at a 10-12% annual rate over the past five years—double the growth of more conservative dividend payers.
Verizon claims the top spot by combining ABBV’s 6.77% yield with superior dividend sustainability and valuation. The telecom giant’s quarterly dividend of $0.69 marks the 19th consecutive year of increases, demonstrating commitment even through industry disruption.
Q3 2025 results proved the business model’s resilience: EPS of $1.21 met estimates, while revenue of $33.82 billion reflected 2.1% wireless service revenue growth. Free cash flow guidance of $19.5-20.5 billion provides ample coverage for the dividend, with a sustainable 58% payout ratio based on annual EPS of $4.69.
The valuation makes VZ irresistible: a forward P/E of 8x is the lowest among these five stocks, while the 14.4% profit margin and 19.9% ROE demonstrate operational efficiency. Analysts see 16.1% upside to a $47.48 target price, meaning investors collect nearly 7% annually while waiting for capital appreciation.
For investors seeking to get rich through dividends, Verizon offers the best combination of immediate income, dividend safety, and upside potential—making it the clear winner in this elite group.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. Even great investments can be a liability in retirement. It’s a simple difference between accumulating vs distributing, and it makes all the difference.
The good news? After answering three quick questions many Americans are reworking their portfolios and finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.