The stock market is a great way to build long-term wealth. With the countless approaches available, navigating the world of investing can seem daunting.

But one method that stands out is to buy shares of dividend paying companieswhich – over long periods of time – have consistently outperformed their non-dividend-paying peers.

A study by Hartford Funds showed that, over a 50-year period ending in 2023 – a period spanning the last four recessions – dividend-paying stocks generated an annual return of 9.17%; stocks without dividends delivered 4.27% in comparison. Additionally, dividend payers exhibit less volatility than their counterparts, making them an attractive choice for those seeking stability alongside growth.

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A more in-depth analysis of the report, titled The Power of Dividends: Past, Present and Futureshows that companies that increase or initiate dividends perform even better, producing 10.2% annually with even fewer dividends. volatility.

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

Global S&P

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

It enjoys a huge competitive advantage because the rating agencies have a long-established reputation. And strict regulatory barriers make it difficult for new entrants to enter this sector. For this reason, S&P Global dominates the credit rating market with a 50% share.

In addition to its rating activity, it also has a data service and an analytics company that provides stable cash flow. Its diversified revenue 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 past 52 years.

Cincinnati Financial

Cincinnati Financial (CINF 1.07%) benefits from constant demand for its insurance products and has been able to expand alongside the growth of the economy. Thanks to its pricing power, the insurer can also adapt to inflationary pressures like those of recent years.

The company benefits from higher interest rates because insurers invest their cash in safer investments. fixed income securities investments with higher returns (compared to the 2010 decade), which helps it produce higher income. Last year’s investment income of $894 million, up 21% from 2021.

Its pricing power and growth in different market environments are why the company has managed to raise its dividend every year for the past 64 years (across nine recessions), making it another great dividend stock to you can count.

Automatic data processing

Many companies choose Automatic data processing (ADP -0.04%)better known as ADP, to manage their human resources, payroll, talent management, time tracking, tax payment and benefits administration.

The company has an extensive global presence, providing payroll services to 42 million employees for more than 1.1 million clients in 140 countries, and its reputation for service gives it a profound economic advantage as a result.

Thanks to its strong customer loyalty, ADP enjoys a constant income stream, which has allowed it to increase its payouts for 50 consecutive years. This recent increase in dividends makes it the newest member of the coveted Dividend Kings club.

Chevron and ExxonMobil

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

To help smooth their profits, Chevron and Exxon operate across the value chain, from the exploration and production of oil and natural gas (upstream), to the transportation of products through pipelines (middle sector), through to the refining of crude oil into fuel and petrochemical products (downstream).

Demand for oil and gas will not decrease anytime soon. The International Energy Agency predicts that oil demand will continue to increase until 2030 to reach more than 2.6 million barrels per day.

For investors looking energy exposure and a reliable payout, Chevron has 37 consecutive years of dividend increases and ExxonMobil has 42, making solid choices.