3 Stocks That Have Paid Dividends for Over 100 Years (2024)

Consistency and reliability are the hallmarks of dividend stocks. They tend to be profitable companies that have survived the stock market’s gyrations over the years. And they choose to share their success with investors.

Investors who buy dividend stocks tend to do better, too. Research confirms dividend stocks have outperformed all other stocks over time.

JPMorgan Chase’s (NYSE:JPM) wealth management division compared the 40-year returns of stocks that initiated a dividend and then increased the payouts versus those that didn’t pay dividends. It found that income-generating stocks returned 9.5% annually versus a 1.6% return for non-payers.

Dividend stocks give veteran investors a secure revenue stream and allow younger investors to reinvest the payouts, juicing their portfolio’s returns to build their retirement nest egg.

These three stocks are the pillars of dividend payers. They have rewarded shareholders with dividends for over 100 years. Investing in them is an ironclad way to earn solid returns and a reliable payout for many more years to come.

York Water (YORW)

The granddaddy of all dividend payers is York Water (NASDAQ:YORW), a small Pennsylvania utility that began making payouts to investors 208 years ago. To put into perspective how long ago that was: James Madison was president of the U.S., the first savings bank in the U.S. opened, and the classic opera “The Barber of Seville” made its debut.

York Water, though, has maintained its roots of providing clean water and wastewater services to 55 municipalities in south-central Pennsylvania. It is the oldest investor-owned utility.

Yet YORW stock’s performance has been disappointing. Shares are down 7% year-to-date (YTD) and are off 20% over the last 12 months. In comparison, the S&P 500 is up 8% and 31%, respectively. The primary reason is that York is weighed down by inflation and high interest rates. Because utilities are capital-intensive businesses, they are impacted more by these factors than other businesses.

York Water’s interest on debt jumped over 37% last year while the weighted average interest rates on its lines of credit more than doubled. Rates went from 2.11% in 2022 to 5.36% last year. If the Federal Reserve cuts interest rates this year as expected, YORW stock should rebound.

Its dividend of 84 cents per share yields 2.4% annually and has increased at a compound annual growth rate (CAGR) of 3.8% for the past decade.

Stanley Black & Decker (SWK)

Hand and power tool maker Stanley Black & Decker (NYSE:SWK) has the second-longest streak of paying dividends. The company was founded in 1843 and began making payouts to investors in 1877, a 147-year continuous record.

Although best known for its namesakes Stanley and Black & Decker line of tools, the world’s biggest tool company also owns many of the best-known brands on the market including Craftsman, DeWalt and Porter-Cable.

SWK stock is under pressure from the challenging U.S. housing market. Like York, it is subject to significant interest rate risk because of the impact on mortgages. Since inflation came in much hotter than expected for February, the Fed may be in no mood to cut rates anytime soon.

Despite the weakness in the stock (down 9% YTD), Stanley’s dividend of $3.24 per share is secure. On an earnings basis it might not seem so, as it reported a GAAP loss of $310 million in 2023 compared to its $1 billion profit in 2022. But on a free cash flow (FCF) basis, there are no worries.

Because companies pay dividends from the money they have left over after paying their bills, Stanley Black & Decker’s FCF payout ratio of 56% shows the dividend is fine. The tool maker generated $853 million in FCF last year and has grown it at a 5.4% CAGR for the past 10 years.

ExxonMobil (XOM)

Integrated oil and gas giant ExxonMobil (NYSE:XOM) has the third-longest record of consecutive years paying a dividend. The company’s bloodline extends directly back to the Standard Oil Trust, founded by John D. Rockefeller in 1870, which began paying dividends in 1882.

The U.S. Supreme Court ordered Standard Oil to be broken up into 34 separate companies in 1911 under the Sherman Antitrust Act. Among the key oil companies that emerged over the years from the breakup were Exxon, Chevron (NYSE:CVX), Amoco (which was acquired by BP (NYSE:BP) in 1998) and Marathon Petroleum (NYSE:MPC).

Exxon is the largest publicly traded oil stock, and both it and Chevron were among the very few industry players that did not cut their dividend during the pandemic. That’s despite the price of oil actually falling below $0 per barrel in the spring of 2020. Today, oil prices are north of $80 a barrel again, and the demand for fossil fuels remains robust.

Exxon’s dividend of $3.80 per share, which yields 3.42%, has grown 3.5% annually for the last decade. XOM stock’s FCF production has been even better, rising 11.5% a year for the past 10 years. The oil company’s FCF payout ratio of 44% shows why the dividend is not at risk and has plenty of room for future increases. Exxon Mobil has raised the payout for 41 consecutive years, making it a Dividend Aristocrat.

On the date of publication, Rich Duprey held a long position in XOM and CVX stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.