I Have Invested in Dividends For 15 Years—These Dividend Aristocrats Built My Passive Income Stream

I am a passive income investor. I make my money work for me and get more money to invest. This way, I can supplement my income and cover my bills. Several investors prefer to park their money in assets that can generate passive income. It requires identifying dividend-paying companies and holding them for the long term.

There are hundreds of stocks to choose from but you must cherry-pick those that are strong, stable companies and haven’t discontinued dividends in adverse times. I like to focus on companies that have an attractive yield and a healthy balance sheet which cushions them against market downturns. These dividend stocks haven’t disappointed me in 15 years and I plan to continue holding on to them.

Exxon Mobil

Several geopolitical issues have impacted Exxon Mobil (NYSE: XOM) lately. The U.S. oil and gas giant has seen significant volatility since April. Overall, the stock is up 4.56% year-to-date and has remained flat over the past 12 months. Exchanging hands for $112, XOM stock has soared over 150% in five years. The company is impacted by fluctuations in oil prices and a drop in crude oil prices will impact the business.

However, Exxon Mobil has an impressive dividend yield of 3.53% and it has raised dividends for 42 consecutive years. The dividend aristocrat has become a part of several investors’ portfolios as a hedge against geopolitical scenarios.

In the recent quarter, the company announced earnings of $7.7 billion and generated a free cash flow of $8.8 billion. It generated $240 billion in revenue in the past 12 months, allowing it to spend $20 billion on the annual share buyback program.

Exxon Mobil has a dividend payout ratio of 61% and a dividend growth rate of 4.3%. Its 5-year dividend growth rate is 2.41% while the 10-year dividend growth rate is 3.42%. It is one of the most profitable oil companies and its payout is more than double the S&P 500. 

Its annual dividend has gone from $1.74 in 2010 to $3.84 in 2024. I expect the company to keep increasing dividends every year, irrespective of crude oil prices. 

One of the largest energy companies, Exxon Mobil has a global presence with operations spread across several countries. Besides the obvious geographical diversification, the company has a diversified revenue stream with its upstream and downstream operations.

Despite the volatility in commodity prices, Exxon Mobil has never disappointed investors. Its highly diversified business makes it one of the best dividend stocks to own this month. If you’re an income investor looking for steady, predictable returns, Exxon Mobil is worth your money.

Johnson & Johnson

Pharmaceutical giant Johnson & Johnson (NYSE: JNJ) has had a tough time dealing with lawsuits but it has the ability to bounce back. With over a century of experience, Johnson & Johnson is one of the most reliable companies in the U.S. Its highly diversified business allows it to survive business downturns and market volatility. Exchanging hands for $156, JNJ stock is up 8.33% year-to-date and has a dividend yield of 3.33%.

Johnson & Johnson has a cash dividend payout ratio of 58.63%, higher than the sector median of 33%. The company has seen steady dividend growth from 2010 when it paid $2.16 annually to 2024 where it paid $4.91. Its 4-year average dividend yield is 2.83% and the annual dividend growth rate is 4.20%. Not many dividend stocks can boost such numbers. 

Whether you are a beginner or an expert investor, JNJ is worth an addition to your portfolio. The company has increased dividends annually for over six decades and has the liquidity to sustain them. JNJ has a diversified portfolio of drugs out of which over 10 drugs generate about $1 billion in annual sales. Besides that, it also has a strong pipeline of drugs out of which 40 are in phase 3.

JNJ has recently completed the acquisition of CAPLYTA to expand its reach in the neuroscience industry. Besides holding an impressive portfolio of drugs, JNJ consistently makes acquisitions that boost its revenue and help the business grow. Investors need to look beyond the short-term litigation concerns and hold the stock for its strength and resilience.

Coca-Cola

The world’s largest beverage company, Coca-Cola (NYSE:KO) is a dividend aristocrat and a dividend king. It has a 63-year streak of dividend increases and has a yield of 2.9%. The company announced a dividend of $0.51 per share in June.

For the first quarter, the company reported a 5% jump in EPS and 6% rise in organic revenue. Its revenue dropped 2% to $11.1 billion and the EPS came in at $0.77. The unit case volume was down in North America while it increased in Asia, Europe, the Middle East, and Africa, thus, offsetting the decline.

Despite a drop in global soda consumption, Coca-Cola continues to remain a strong industry player with its diversified portfolio. It has built a portfolio of fruit juices, water, tea, energy drinks, sports drinks, coffee, and alcoholic beverages.

Coca-Cola has announced a 5.2% year-over-year increase in the quarterly share payout which brought the dividend to $0.51 in 2025. When I bought the stock in 2010, the annual dividend stood at $0.88 and in 2024, it was $1.94. Coca-Cola has a 4-year average dividend yield of 2.92% and its 1-year dividend growth rate is 5.36%. The company paid $8.4 billion in dividends in 2024. 

The company has a successful business model where it only sells its syrups and concentrates for drinks while the rest is handled by bottling partners, thus, keeping costs low. The management is also ramping up its investments in emerging markets where there’s a chance of generating higher revenue.

Trading at $71 per share, it looks reasonably valued and is a safe stock to own amidst market uncertainty. I believe Coca-Cola is a reliable stock for passive income investors. It generates steady profits, has a global presence, and is a highly diversified business.

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