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Retirees who purchase stocks for investment income often have to settle for low yielding stocks. The S&P 500 Index yields just 1.3% right now, on average. However, there are plenty of high dividend stocks that have strong current yields above 3%, and also have secure dividend payouts that can grow over time.

And, investors can find many quality dividend payers with market-beating yields. This is very important, as income investors should avoid dividend cuts whenever possible.

The following 3 dividend stocks have increased their dividends over 25 years in a row, yield over 3% right now, and have safe payouts that can be increased each year going forward.

Hormel Foods (HRL)

Hormel Foods was founded in 1891 in Minnesota. Since that time, the company has grown into a $17 billion market capitalization juggernaut in the food products industry with about $12 billion in annual revenue. Hormel has kept its core competency as a processor of meat products for well over a hundred years but has also grown into other business lines through acquisitions.

The company sells its products in 80 countries worldwide, and its brands include Skippy, SPAM, Applegate, Justin’s, and more than 30 others. In addition, Hormel is a member of the Dividend Kings, having increased its dividend for 59 consecutive years.

Hormel posted fourth quarter and full-year earnings on December 4th, 2024, and results were in line with expectations. The company posted adjusted earnings-per-share of 42 cents, which met estimates. Revenue was off 2% year-on-year to $3.14 billion, also hitting estimates. Operating income was $308 million for the quarter on an adjusted basis, or 9.8% of revenue. Operating cash flow was $409 million for Q4.

For the year, sales were $11.9 billion, and adjusted operating income was $1.1 billion, or 9.6% of revenue. Adjusted earnings-per-share was $1.58. Operating cash flow hit a record of $1.3 billion.

Guidance for 2025 was initiated at $11.9 billion to $12.2 billion in sales, with organic net sales growth of 1% to 3%. Adjusted operating income is expected to be $1.18 billion to $1.28 billion, and earnings guidance was set at $1.58 to $1.72 per share on an adjusted basis. With continued top-line growth and strong profitability, Hormel should have little trouble continuing its dividend-increase streak.

HRL has increased its dividend payout for 59 consecutive years and shares currently yield 4%.

New Jersey Resources (NJR)

New Jersey Resources provides natural gas and clean energy services, transportation, distribution, asset management and home services through its five main subsidiaries. The company owns both regulated and nonregulated operations.

NJR’s principal subsidiary, New Jersey Natural Gas (NJNG), owns and operates natural gas transportation and distribution infrastructure serving over half a million customers. NJR Clean Energy Ventures (CEV) invests in and operates solar projects, to provide customers with low-carbon solutions.

NRJ Energy Services manages a portfolio of natural gas transportation and storage assets, as well as provides physical natural gas services to customers in North America. The midstream subsidiary owns and invests in several large midstream gas projects. Finally, the home services business provides heating, central air conditioning, water heaters, standby generators, and solar products to residential homes.

New Jersey Resources was founded in 1952 and has paid a quarterly dividend since. The company has increased its annual dividend for 28 consecutive years and has more than 1,300 employees.

New Jersey Resources reported fourth quarter 2024 results on November 25th, 2024, for the period ending September 30th, 2024. Fourth quarter net income of $91.1 million compared favorably to the prior year quarter’s $37.0 million. Consolidated net financial earnings (NFE) amounted to $88.7 million, compared to net financial earnings (NFE) of $29.6 million in Q4 2023 and NFE per share of $0.89 compared to $0.30 per share one year ago.

NFE for FY 2024 rose 10% compared to 2023 to $2.95 per share. NJNG added 8,079 new customers in FY 2024. Management initiated its guidance for fiscal 2025, seeing NFEPS in the range of $3.05 to $3.20.

The dividend payout ratio for the company on a net financial earnings basis appears to be very safe historically, especially for a utility company which can often safely pay out a large portion of earnings. We expect the company will continue to increase the dividend each year. NJR stock currently yields 3.9%.

Kimberly-Clark Corp. (KMB)

The Kimberly-Clark Corporation is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues. It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generating about $20 billion in annual revenue.

Kimberly-Clark posted fourth quarter and full-year earnings on January 28th, 2025, and results were somewhat mixed again. Adjusted earnings-per-share came to $1.50, missing estimates by a penny. Revenue was off 0.8% year-on-year to $4.93 billion, but still beating estimates by $70 million.

Organic sales growth was 2.3% for the quarter with the balance of the move in revenue from forex translation and divestitures. Organic sales were driven by volume growth of 1.5%, which was the best performance of the year. Pricing increased 0.6%, and product mix added 0.1%.

The company noted all segments grew volume during the quarter. Adjusted gross margin was up 50 basis point year-on-year to 35.4% of sales, as productivity gains were partially offset by investments and manufacturing cost headwinds. Adjusted operating profit was up 2.1%.

Kimberly-Clark’s competitive advantage is in its longstanding dominance with a variety of its brands, which are well known in the marketplace. It should also perform well during recessions as most of its products are consumable staples.

Kimberly-Clark has increased its dividend for 53 consecutive years, making it a member of the Dividend Kings. KMB shares currently yield 3.6%.

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