Executive Summary
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Companies that consistently increase their dividends over time are often considered strong long-term investments, according to an analysis by Justin Pope for The Motley Fool, published on November 2, 2025. These companies typically exhibit robust business models, effective management, healthy financial standings, and sustained growth opportunities. The analysis highlights five specific firms—Microsoft, McDonald’s, Automatic Data Processing, Sherwin-Williams, and Walmart—as prime examples of companies with decades-long track records of dividend growth that could continue to reward shareholders.
Characteristics of Dividend Growth Stocks
Dividend growth stocks are characterized by their ability to generate durable profits, often due to competitive advantages. They are typically managed prudently, ensuring the company maintains a strong financial position. Furthermore, these companies usually possess ample growth opportunities that translate into higher sales and earnings over time.
Historical data suggests that stocks with consistently growing dividends tend to outperform other types of equities over the long term. Investing in such companies as part of a diversified portfolio, especially when reinvesting dividends, is presented as a path to significant wealth accumulation.
Featured Dividend Growers
The analysis identifies five prominent companies known for their consistent dividend increases:
Microsoft
Microsoft has demonstrated 23 consecutive years of dividend increases, a notable achievement for a technology company heavily invested in innovation like artificial intelligence (AI) and cloud computing. The company’s diverse business spans consumer and enterprise software, infrastructure, and gaming, providing numerous growth avenues. While its dividend yield may appear modest, Microsoft’s long-term growth potential is expected to drive substantial future dividend increases.
McDonald’s
McDonald’s, with its global empire of over 44,000 locations across 100 countries, has raised its dividend for 49 consecutive years. The company’s franchise model generates steady revenue from royalties and fees. Its continued growth is supported by a rising global population, positioning it as a reliable long-term investment.
Automatic Data Processing (ADP)
ADP, a global provider of cloud-based human resources products and services, including payroll, training, and tax compliance, boasts a 50-year dividend growth streak. Despite its sensitivity to the labor market, ADP’s management has a proven ability to navigate challenging economic conditions. The essential nature of its services suggests continued relevance and growth.
Sherwin-Williams
Sherwin-Williams, a leader in the paint and coatings industry, has increased its dividend for 46 consecutive years. The company benefits from a strong store footprint and a reputable brand among both do-it-yourself homeowners and professional contractors. With a modest dividend payout ratio, Sherwin-Williams is anticipated to continue its dividend growth trend.
Walmart
As the largest retailer in the U.S., Walmart has cemented its position with approximately 90% of Americans living near one of its stores. The company has successfully integrated e-commerce with its extensive supply chain. Walmart has amassed over five decades of uninterrupted annual dividend increases, maintaining a dividend payout ratio below 40% of its 2025 earnings estimates, making it a notable dividend stock for long-term holding.
Key Takeaways
The analysis suggests that companies with a history of increasing dividends often represent stable, well-managed businesses with strong growth prospects. Investing in such firms, particularly when dividends are reinvested, can be a strategy for long-term wealth accumulation, offering a potentially less volatile path to financial growth.
