Among investment strategies prioritizing income and growth, targeting companies that reliably increase their dividends remains a compelling approach. Historical data indicates that firms consistently raising dividends have generated superior average annualized total returns compared to those with stagnant dividends or no dividend payments. Specifically, research spanning five decades shows that dividend growers delivered an average annualized total return of approximately 10.2%, outperforming companies with unchanged dividend levels (6.8%) and those that do not pay dividends at all (4.3%).
Within this context, ExxonMobil (ticker: XOM), Agree Realty (ticker: ADC), and Kimberly Clark (ticker: KMB) stand out for their long-standing track records of dividend growth. Their consistent increases, supported by strong operational earnings and strategic growth plans, position them as noteworthy candidates for investors aiming to convert an initial sum of $1,000 into a steadily increasing income stream.
ExxonMobil's Sustained Dividend Expansion Supports Robust Returns
ExxonMobil has demonstrated exceptional commitment to dividend growth, having raised its dividend every year for 43 consecutive years—a feat accomplished by fewer than 5% of S&P 500 constituents. Currently offering a yield near 3.5%, a $1,000 investment in ExxonMobil could yield roughly $35 annually in dividend income, with the outlook for growth supported by the company’s financial and operational strategies.
The oil industry's profitability is illustrated by ExxonMobil’s strong margins and financial projections. The company has recently updated its plan to aim for $25 billion in additional earnings and $35 billion in incremental cash flow by 2030, based on stable prices and margins compared to 2024 levels. Critical to this growth trajectory are the company’s initiatives to reduce costs and invest in its advantageously positioned, high-margin assets, which contribute to enhanced profitability and cash flow generation.
Furthermore, ExxonMobil anticipates producing cumulative surplus free cash flow of $145 billion by 2030, assuming an average oil price close to $65 per barrel. This free cash flow provides the financial capacity both to maintain dividend growth and to undertake sizeable share repurchases, with a target buyback amount of $20 billion set for 2026. Together, these factors illustrate ExxonMobil's disciplined financial management and reinforce its capacity to provide increasing shareholder returns over the long term.
Agree Realty Presents a High-Yield, Monthly Dividend with Solid Growth
Agree Realty, a specialized real estate investment trust (REIT), focuses exclusively on income-producing retail properties leased to financially strong retailers. Its portfolio includes more than 2,600 freestanding retail assets leased on a net or ground lease basis, with prominent tenants such as Walmart and Tractor Supply. This leasing structure offers highly predictable rental revenue, further supported by the fact that approximately two-thirds of rental income originates from tenants with investment-grade credit ratings, securing cash flow stability.
The REIT currently offers a monthly dividend yield of about 4.3%, backed by a decade of dividend growth averaging 5.3% annually. This combination of yield and growth has propelled Agree Realty to an average annual total return of 11.8% since its initial public offering in 1994.
Agree Realty’s dividend growth is largely driven by continuous acquisition of additional retail properties, with investments exceeding $10 billion since 2010. Significantly, the REIT’s existing retail partners manage over 170,000 locations, presenting a substantial pipeline of potential sale-leaseback transactions to expand its portfolio further. The company benefits from one of the strongest financial profiles among peers, providing flexibility to sustain both portfolio growth and its attractive, high-yielding monthly distributions.
Kimberly Clark: A Dividend King with a Diverse Consumer Brand Portfolio
Kimberly Clark boasts an unparalleled dividend history, having paid dividends for 91 consecutive years and increased them for 53 straight years, qualifying as a Dividend King—a title reserved for companies with at least half a century of annual dividend raises. Its current dividend yield stands at roughly 5%, reflecting the strength and reliability of its income stream.
The company's portfolio comprises well-recognized consumer brands including Huggies, Kleenex, Scott, and Cottonelle, which collectively hold either first or second market share positions in approximately 70 countries worldwide. Such market dominance supports steady, resilient revenue that underpins Kimberly Clark's capacity to sustain its dividend growth trajectory.
Extending its portfolio's strength, Kimberly Clark has pursued strategic acquisitions, as exemplified by its agreement to acquire Kenvue in a transaction valued at $48.7 billion, expected to close in 2026. Kenvue contributes leading consumer healthcare brands such as Band-Aid, Listerine, and Tylenol. The company anticipates this acquisition will deliver $2.5 billion in combined cost and revenue synergies within two years post-transaction, enhancing earnings power and reinforcing the foundation for ongoing dividend increases.
Summary of Dividend Growth Opportunities
Investors seeking reliable and growing dividend income might consider ExxonMobil, Agree Realty, and Kimberly Clark, each of which has established a robust track record of increasing dividends. Supported by solid business models, strategic growth initiatives, and financial discipline, these firms are well-positioned to deliver attractive total returns over the long term. An investment of $1,000 in these stocks could translate into a progressively increasing payout, reflecting both yield and growth potential.
Key Points
- Dividend-growing companies outperform others over long periods, with an average annualized return of 10.2% compared to lower returns from firms with stagnant or no dividends.
- ExxonMobil’s 43-year streak of dividend growth, combined with a strategic plan targeting $25 billion in additional earnings by 2030, supports a strong dividend yield near 3.5%.
- Agree Realty’s focus on retail properties leased to creditworthy tenants underpins a 4.3% monthly dividend yield and continued growth opportunities through acquisitions.
- Kimberly Clark’s status as a Dividend King with more than five decades of dividend increases is supported by its leading consumer brands and complementary acquisition strategy with Kenvue.
Risks and Uncertainties
- Commodity price fluctuations can affect ExxonMobil's earnings and free cash flow projections, impacting its ability to sustain dividend growth.
- Agree Realty’s income depends significantly on retail tenant stability and lease renewals, which could be affected by economic shifts or changes in the retail landscape.
- Kimberly Clark’s acquisition of Kenvue involves integration risks and realization of anticipated synergies, which could influence future earnings and dividend capacity.