Income investors can explore the lucrative US market for stocks with long dividend-paying histories.
Some of these companies are called “dividend aristocrats”, a term that refers to a stock that has raised its dividends without fail for 25 years or more.
Companies with such a solid track record are well-run with a strong business model that generates consistent free cash flow.
We highlight four US dividend aristocrats that you can consider adding to your buy watchlist.
AbbVie (NYSE: ABBV)
AbbVie is a pharmaceutical company that manufactures medications for therapeutic areas such as immunology, oncology, neuroscience, and eye care.
The company reported a mixed set of earnings for 2024.
Revenue inched up 3.7% year on year to US$56.3 billion.
Operating profit, however, fell by 28.4% year on year to US$9.1 billion because of higher research and development expenses.
Net profit tumbled 12% year on year to US$4.3 billion.
Despite the drop in profit, AbbVie generated a healthy positive free cash flow of US$17.8 billion for 2024.
AbbVie recently upped its quarterly dividend from US$1.55 to US$1.64.
Since 2013, the company has increased its dividend by 310% and is a member of the S&P Dividend Aristocrats Index.
Management has reaffirmed its expectation for a high single-digit compound annual revenue growth rate through 2029.
Becton Dickinson & Co (NYSE: BDX)
Becton Dickinson, or BD, is one of the largest medical technology companies in the world.
The company employs more than 70,000 employees and helps to enhance the safety and efficiency of clinicians’ care delivery and advance researchers’ capabilities to develop diagnostic and therapeutic solutions.
For the first quarter of fiscal 2025 (1Q FY2025) ending 31 December 2024, BD saw revenue increase 9.8% year on year to US$5.2 billion.
Operating profit inched up 3.2% year on year to US$453 million while net profit improved by 7.8% year on year to US$303 million.
The medical technology company generated a positive free cash flow of US$588 million for 1Q FY2025.
The board increased BD’s quarterly dividend to US$1.04, which represents a 9.5% year-on-year rise.
This increase is the 53rd consecutive fiscal year where BD has raised its dividend.
The company has announced its intention to separate its Biosciences and Diagnostics Solutions business to strengthen its strategic focus and drive growth through the unlocking of value.
BD also has a strong, innovative pipeline of products that can continue to drive both revenue and profit growth.
For fiscal 2025, BD expects adjusted revenue growth of between 8.8% to 9.3% year on year with an improvement of around one percentage point to operating margin (FY2024: 24.2%).
Brown-Forman (NYSE: BF.B)
Brown-Forman, or BF, manufactures and sells a variety of alcohol brands such as Jack Daniel’s Tennessee Whisky, Korbel, and Herradura.
Its brands are sold in more than 170 countries worldwide and the company employs around 5,700 staff.
The company announced a downbeat set of earnings for the first nine months of fiscal 2025 (9M FY2025) ending 31 January 2025.
Net sales fell 4% year on year to US$3.1 billion while operating profit declined by 13% year on year to US$902 million.
Net profit dipped 5% year on year to US$723 million for 9M FY2025.
However, free cash flow surged 53.7% year on year to US$329 million for the period.
BF increased the quarterly cash dividend by 4% year on year to US$0.2265, marking the 41st consecutive year that the liquor company has increased its dividend.
Management has maintained the growth outlook for FY2025 and forecasts organic net sales growth of around 2% to 4%.
Operating profit is projected to rise by 2% to 4% year on year.
Just last month, BF and Reyes Beverage Group announced a new distribution partnership in California effective 1 May 2025.
This partnership will help to expand BF’s distribution channels and advance BF’s objective of growing in its key markets.
Archer Daniels Midland (NYSE: ADM)
Archer Daniels Midland, or ADM, is a human and animal nutrition company that is pioneering a range of plant-based consumer and industrial solutions to replace petroleum-based products.
For 2024, the company reported a weak set of earnings with revenue dipping almost 9% year on year to US$85.5 billion.
Net profit plunged 48.3% year on year to US$1.8 billion.
ADM’s free cash flow generation also weakened, tumbling 59% year on year to US$1.2 billion.
Despite this, the business upped its quarterly cash dividend to US$0.51 from US$0.50, marking the 51st consecutive year of dividend increase.
The company expects to log high single-digit year-on-year earnings growth for 2025 with earnings per share coming in between US$4 to US$4.75 (2024: US$3.65).
It sees the enduring global trends of food security and sustainability as catalysts that should continue to drive business growth.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
