The stock market is a great way to create long-term wealth. Navigating the world of investing, where there are countless approaches available, can be overwhelming.

However, one of the prominent methods is to buy shares. dividend paying companiesIt is a company that has consistently outperformed its non-dividend-paying peers over long periods of time.

A study by Hartford Funds showed that dividend-paying stocks returned 9.17% annually over a 50-year period ending in 2023 (a period that covers the last four recessions); In comparison, stocks that did not distribute dividends provided a return of 4.27%. Additionally, dividend payers exhibit less volatility than their counterparts, making them an attractive choice for those looking for stability as well as growth.

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A more in-depth look at the report titled The Power of Dividends: Past, Present and FutureIt shows that companies that increase or initiate dividends perform even better, generating profits of 10.2% annually, with even less profit volatility.

If you’re looking for income and solid long-term returns, here are five excellent dividend stocks that have increased their dividends during the last four recessions or longer.

S&P Global

S&P Global (SPGI 1.15%) It plays an important role in assessing the creditworthiness of companies, governments or other organizations in credit markets.

It has a great competitive advantage because credit rating agencies have a well-established reputation. And stringent regulatory hurdles make it difficult for new entrants to enter the space. Therefore, S&P Global dominates the credit score market with a 50% share.

Besides the rating business, it is also a data and analytics business that generates stable cash flow. A diverse income base and long history of cash management have made S&P Global a reliable dividend payer that has increased its annual payout in each of the last 52 years.

Cincinnati Finance

Cincinnati Finance (CINF 1.07%) It has managed to grow along with the growing economy by benefiting from the stable demand for insurance products. Thanks to the insurer’s pricing power, it can also adapt to inflationary pressures, as in recent years.

The company benefits from higher interest rates as insurers put their cash in safer places fixed income Higher-yielding investments (compared to the 2010s decade), which helps generate higher income. Last year’s investment income of $894 million increased by 21% compared to 2021.

Its pricing power and growth across different market environments are why the company has managed to increase its dividend annually for the last 64 years (through nine recessions), making it another excellent dividend stock you can trust.

Automatic Data Processing

Many companies prefer Automatic Data Processing (ADP -0.04%)better known as ADP, to manage human resources, payroll, talent management, time tracking, tax payments and benefits administration.

The company has a broad global presence, providing payroll services to 42 million employees for more than 1.1 million customers in 140 countries, and its reputation for service gives it a deep economic moat as a result.

ADP enjoys a steady revenue stream thanks to its strong customer retention, allowing it to grow its payout for 50 consecutive years. This latest dividend increase makes it the newest member of the coveted group Dividend Kings club.

Chevron and ExxonMobil

Strip (CVX 0.10%) And ExxonMobil (XOM -0.03%) They are key players in the oil and gas industry, making them vulnerable to fluctuations in crude oil and natural gas prices.

To help stabilize their earnings, Chevron and Exxon operate across the value chain, from oil and gas exploration and production (upstream), to transporting products through pipelines (midstream), to converting crude oil into fuels and petrochemicals (downstream).

The demand for oil and natural gas does not seem to decrease anytime soon. The International Energy Agency predicts that oil demand will continue to rise, reaching more than 2.6 million barrels per day by 2030.

For investors looking energy Risk-averse and with a reliable payout, Chevron has 37 consecutive years of dividend increases and ExxonMobil has 42, making both solid picks.