For many investors, dividend stocks are the foundation of a reliable income strategy — but not all dividend payers are created equal.
In his latest video, Rick Orford breaks down the major types of dividend stocks and how each plays a different role in your portfolio. From the long-term consistency of Dividend Kings to the high-yield potential of Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs), understanding these distinctions can help you balance income and growth.
#1. Dividend Aristocrats (25+ Years of Growth)
Dividend Aristocrats are companies in the S&P 500 Index ($SPX) that have increased their dividend payouts for at least 25 consecutive years.
Income credentials:
- They demonstrate strong financial discipline and resilience.
- They raise dividends even during recessions or inflationary cycles.
- They often attract long-term investors focused on consistency.
Examples include:
- Abbott Laboratories (ABT)
- Archer Daniels Midland (ADM)
- McDonald’s (MCD)
- PepsiCo (PEP)
- Caterpillar (CAT)
Explore the full Dividend Aristocrats Watchlist →
#2. Dividend Kings (50+ Years of Increases)
Dividend Kings take reliability to another level. While not necessarily S&P members, these companies have increased their dividends for 50 or more straight years.
Income credentials:
- They’ve survived multiple market crashes and inflation cycles.
- They represent the gold standard of dividend consistency.
- Their steady payouts appeal to conservative, income-focused investors.
Examples include:
See the full Dividend Kings Watchlist →
#3. Dividend “Zombies” (100+ Years of Payments)
Dividend “zombies” have paid dividends for over a century without interruption. They haven’t necessarily raised their payouts each year, but they’ve consistently delivered income for generations.
Income credentials:
- They include companies with unmatched longevity.
- They provide steady, predictable cash flow.
- They’re often household names that have stood the test of time.
Examples include:
- General Mills (GIS)
#4. REITs and BDCs (High Yield, Slower Growth)
If you’re after higher income, Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs) offer above-average yields — often 5–10% or more.
Income credentials:
- By law, they must pay out at least 90% of their profits to shareholders.
- They can provide strong cash flow during low-rate or volatile markets.
- However, they have limited reinvestment ability, which can slow long-term price growth.
Find top-paying REIT stocks for investors seeking passive income →
Which Type Fits Your Strategy?
- Long-term investors: Focus on Dividend Aristocrats or Kings for reliability and compounding income.
- Income seekers: Look at REITs and BDCs for higher immediate yield.
- Balanced investors: Blend a few Aristocrats with select high-yield plays for growth and income.
Find and Track Dividend Leaders on Barchart
Use these resources to research dividend opportunities:
The Takeaway
“If you’re after long-term reliability, look to Dividend Aristocrats and Kings,” Rick says. “If you’re chasing yield, REITs and BDCs can give you more income — but they often trade growth for payouts.”
No matter your approach, dividend investing rewards patience — and Barchart’s tools can help you find the right balance for your portfolio.
Watch Rick’s Clip on Dividend Stocks →
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