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Investors looking for high-quality dividend growth stocks should consider the Dividend Aristocrats that have increased their dividends for at least 25 years. Companies with long histories of dividend increases are great long-term dividend growth stocks.

In order to raise dividends for 25 years, a company must have leadership positions in their industries, and durable competitive advantages that provide for long-term growth.

The following 3 Dividend Aristocrats have high yields well above the S&P 500 average, and are great candidates for income investors seeking passive income.

J.M. Smucker (SJM)

J.M. Smucker is an international powerhouse of packaged food and beverage products including iconic names like Smucker’s, Jif and Folgers, along with various pet food brands. The company generated $8 billion in sales in each of the last two fiscal years.

In early June, Smucker’s reported (6/6/24) results for the fourth quarter of fiscal 2024, which ended on April 30th, 2024. Currency-neutral organic sales grew 3% over the prior year’s quarter, mostly thanks to material price hikes. The strong volumes amid price hikes are testaments to the strength of the brands of the company.

Adjusted earnings-per-share grew 1%, from $2.64 to $2.66, and exceeded the analysts’ estimates by $0.33. Smucker’s provided decent guidance for fiscal 2025. It expects comparable sales growth of 9.5%-10.5% and adjusted earnings-per-share of $9.80-$10.20.

Going forward, the company will grow organically, as well as through major acquisitions. For example, in 2023, Smucker’s completed the acquisition of Hostess Brands (TWNK) in a cash-and-stock deal with a value of $5.6 billion, which includes debt. Hostess Brands has many sweet baked goods brands, which will expand the product portfolio of Smucker’s and create synergies.

Smucker’s iconic brands continue to enjoy recognition, which gives the company pricing power. During the last recession, Smucker’s held up exceptionally well, growing both earnings and dividends during this time.

SJM has increased its dividend for 27 years and yields 3.7%.

Stanley Black & Decker (SWK)

Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.

In the 2024 first quarter, revenue declined 1.5% to $3.87 billion, but this topped estimates by $40 million. Adjusted earnings-per-share of $0.56 compared favorably to -$0.10 in the prior year and was $0.01 better than expected.

The company’s cost reduction program remains on track to deliver $2 billion in pre-tax savings by 2025. Stanley Black & Decker has achieved $1.1 billion of cost savings since starting the program.

Management reaffirmed its prior guidance for 2024 as well. The company continues to expect adjusted earnings-per-share in a range of $3.50 to $4.50 for the year.

Stanley Black & Decker’s key competitive advantage is that its products are well-known and respected by customers. This was why the company has been able to increase prices in certain product categories over the years and not see a decline in sales. Stanley Black & Decker has also been very active in making strategic acquisitions to help grow the company.

SWK stock currently yields 4.1%.

Genuine Parts Company (GPC)

Genuine Parts Company was founded in 1928 and since that time, it has grown into a conglomerate that sells automotive and industrial parts, electrical materials, and general business products.

Its global span reaches throughout North America, Australia, New Zealand, and Europe and is comprised of more than 3,000 locations. It has about 60,000 employees and generates about $24 billion in annual revenue.

Genuine Parts posted first quarter earnings on April 18th, 2024, and results were mixed. Adjusted earnings-per-share came to $2.22, which was six cents better than expected. Net income was off from $304 million to $249 million year over-year. Revenue, however, was flat year-over-year at $5.8 billion, and missed estimates by $40 million.

 The sales result was attributable to a 1.9% benefit from acquisitions, offset by a 0.9% decline in comparable sales, as well as a 0.7% headwind from the impact of forex. The company expects just under $10 in earnings-per-share for this year, up slightly from prior guidance. Revenue is still expected to be ~4% higher from last year.

Genuine Parts’ pipeline of new acquisitions should keep the trend of higher revenue in place for the foreseeable future, with sales growth being the primary driver of earnings-per-share growth moving forward, in concert with a small amount of share repurchases.

Genuine Parts is famous for its dividend, as its 68 consecutive years of increases makes it a Dividend Aristocrat and a Dividend King. The current yield is 2.8%.

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