The Best DRIP Stocks Now | 15 No-Fee Dividend Champions

Up to date on January sixteenth, 2025 by Bob Ciura

DRIP stands for Dividend Reinvestment Plan. When an investor is enrolled in DRIP shares, it signifies that incoming dividend funds are used to buy extra shares of the issuing firm – mechanically.

Many companies provide DRIPs that require the buyers to pay charges. Clearly, paying charges is a detrimental for buyers. As a basic rule, buyers are higher off avoiding DRIP shares that cost charges.

Thankfully, many firms provide no-fee DRIP shares. These enable buyers to make use of their hard-earned dividends to construct even bigger positions of their favourite high-quality, dividend-paying firms – without spending a dime.

The Dividend Champions are a gaggle of high quality dividend shares which have raised their dividends for not less than 25 consecutive years.

You’ll be able to obtain your free copy of the Dividend Champions checklist, together with related monetary metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the hyperlink beneath:

 

Take into consideration the highly effective mixture of DRIPs and Dividend Champions…

You’re reinvesting dividends into an organization that pays increased dividends yearly. Which means yearly you get extra shares – and every share is paying you extra dividend earnings than the earlier 12 months.

This makes a strong (and cost-effective) compounding machine.

This text takes a take a look at the highest 15 Dividend Champions which are no-fee DRIP shares, ranked so as of anticipated whole returns from lowest to highest.

The up to date checklist for 2025 consists of our high 15 Dividend Champions, ranked by anticipated returns in accordance with the Certain Evaluation Analysis Database, that provide no-fee DRIPs to shareholders.

You’ll be able to skip to evaluation of any particular person Dividend Champion beneath:

Moreover, please see the video beneath for extra protection.

#15: Northrop Grumman (NOC)

• 5-year anticipated annual returns: 6.1%

Northrop Grumman Company is likely one of the main protection shares.

It experiences 4 enterprise segments: Aeronautics Techniques (plane and UAVs), Mission Techniques (radars, sensors and techniques for surveillance and concentrating on), Protection Techniques (sustainment and modernization, directed power, tactical weapons), and House Techniques (missile protection, house techniques, hypersonics and house launchers).

Northrop Grumman makes the B-2 Spirit, E-2D, E-8C, RQ-4 International Hawk, MQ-4C Triton, and MQ-8B/C Fireplace Scout. The corporate additionally offers content material on the F-35 and F/A-18.

It gained the contract for the B-21 Raider. The corporate had income of over $39.3B in 2023.

Northrop Grumman reported glorious outcomes for Q2 FY 2024 on July twenty fifth, 2024. Firm-wide income elevated 7% and diluted earnings per share rose 19% to $6.36 from $5.34 on a year-over-year foundation.

Income for Aeronautics Techniques rose 14% year-over-year resulting from increased volumes in restricted, Triton, and F-35 applications.

Click on right here to obtain our most up-to-date Certain Evaluation report on NOC (preview of web page 1 of three proven beneath):

#14: Tompkins Monetary (TMP)

• 5-year anticipated annual returns: 6.6%

Tompkins Monetary is a regional monetary companies holding firm headquartered in Ithaca, NY that may hint its roots again greater than 180 years. It has whole property of about $8 billion, which produce about $300 million in annual income.

The corporate provides a variety of companies, together with checking and deposit accounts, time deposits, loans, bank cards, insurance coverage companies, and wealth administration to its prospects in New York and Pennsylvania.

Tompkins additionally sports activities a 38-year dividend enhance streak after boosting its payout for November 2024.

Tompkins posted third quarter earnings on October twenty fifth, 2024, and outcomes had been higher than anticipated on each the highest and backside strains, and by some margin for each.

Earnings-per-share got here to $1.30, which was 9 cents forward of estimates. Income was $76.6 million, which was about $1 million forward of expectations.

Web curiosity margin was 2.79%, which was up six foundation factors from the second quarter, and up 4 foundation factors from the year-ago interval. Whole common price of funds was up 5 foundation factors from Q2, and down 10 foundation factors from the year-ago interval.

Whole fee-based companies revenues had been up about 3.2% from the year-ago interval, however solely by about $648,000 given its small dimension by way of whole income. Non-interest bills had been flat to the year-ago interval, in addition to to the second quarter of this 12 months.

Click on right here to obtain our most up-to-date Certain Evaluation report on TMP (preview of web page 1 of three proven beneath):

#13: Illinois Device Works (ITW)

• 5-year anticipated annual returns: 6.7%

Illinois Device Works is a diversified multi-industrial producer with seven distinctive working segments: Automotive, Meals Gear, Take a look at & Measurement, Welding, Polymers & Fluids, Building Merchandise and Specialty Merchandise.

Final 12 months the corporate generated $16.1 billion in income.

On October thirtieth, 2024, Illinois Device Works reported third quarter 2024 outcomes for the interval ending September thirtieth, 2024. For the quarter, income got here in at $4.0 billion, shrinking 1.6% year-over-year. Gross sales declined 3.3% within the Automotive OEM section, the biggest out of the corporate’s seven segments.

The Specialty Merchandise section grew revenues by 5.7%. In the meantime, Meals Gear, Take a look at & Measurement and Electronics, Welding, Polymers & Fluids and
Building Merchandise noticed income decline -0.2%, -0.2%, -1.3%, -1.9%, and -8.1%, respectively.

Web earnings equaled $1,160 million or $3.91 per share in comparison with $772 million or $2.55 per share in Q3 2023. Within the third quarter, ITW repurchased $375 million of its shares. It additionally raised its dividend by 7% to $6.00 yearly, marking its 61st consecutive annual dividend enhance.

Click on right here to obtain our most up-to-date Certain Evaluation report on ITW (preview of web page 1 of three proven beneath):

#12: A.O. Smith (AOS)

• 5-year anticipated annual returns: 8.2%

A.O. Smith is a number one producer of residential and business water heaters, boilers and water therapy
merchandise. It generates two-thirds of its gross sales in North America, and many of the relaxation in China.

A.O. Smith has raised its dividend for 30 years in a row, making the corporate a Dividend Aristocrat. The corporate was based in 1874 and is headquartered in Milwaukee, WI.

A.O. Smith reported its third quarter earnings outcomes on October 22. The corporate generated revenues of $903 million throughout the quarter, which represents a decline of 4% in comparison with the prior 12 months’s quarter.

Income declined by 1% in North America, however the worldwide enterprise noticed a wider decline, primarily resulting from decrease gross sales in China, which has a troubled actual property market.

A.O. Smith generated earnings-per-share of $0.82 throughout the third quarter, which was down 9% on a 12 months over 12 months foundation.

Click on right here to obtain our most up-to-date Certain Evaluation report on AOS (preview of web page 1 of three proven beneath):

#11: UGI Corp. (UGI)

• 5-year anticipated annual returns: 8.2%

UGI Company is a fuel and electrical utility that operates in Pennsylvania, along with a big power distribution enterprise that serves all the US and different components of the world.

It was based in 1882 and has paid consecutive dividends since 1885. Its market capitalization is $6.2 billion. The corporate operates in 4 reporting segments: AmeriGas, UGI Worldwide, Midstream & Advertising, and UGI Utilities.

On November 22, 2024, UGI Company reported report outcomes for fiscal 2024, attaining an all-time excessive adjusted diluted EPS of $3.06, pushed by robust execution of strategic priorities and effectivity enhancements.

The corporate realized a $75 million discount in working bills forward of schedule, attaining everlasting price financial savings focused for fiscal 2025.

UGI additionally returned $320 million to shareholders by way of dividends, persevering with a 140-year streak of consecutive dividend funds and demonstrating a five-year EPS CAGR of 6%.

Key accomplishments included vital investments in infrastructure, with $500 million allotted to utility enhancements and the completion of the Moody RNG mission, anticipated to supply 300 MMCF yearly.

Click on right here to obtain our most up-to-date Certain Evaluation report on UGI (preview of web page 1 of three proven beneath):

#10: Realty Revenue (O)

• 5-year anticipated annual returns: 9.2%

Realty Revenue is a retail actual property centered REIT that has develop into well-known for its profitable dividend development historical past and month-to-month dividend funds.

Realty Revenue owns retail properties that aren’t a part of a wider retail growth (comparable to a mall), however as an alternative are standalone properties. Which means the properties are viable for a lot of completely different tenants, together with authorities companies, healthcare companies, and leisure.

Realty Revenue reported third-quarter 2024 earnings, with EPS at $0.30, lacking estimates by $0.06, however income of $1.27 billion, a 26% year-over-year enhance, beat expectations by $10.01 million. Web earnings for frequent shareholders was $261.8 million.

The corporate generated $915.6 million in Adjusted Funds from Operations (AFFO), or $1.05 per share. Realty Revenue invested $740.1 million in new properties, attaining an preliminary common money yield of seven.4%, whereas sustaining a portfolio occupancy of 98.7%.

Click on right here to obtain our most up-to-date Certain Evaluation report on Realty Revenue (preview of web page 1 of three proven beneath):

#9: Common Company (UVV)

• 5-year anticipated annual returns: 9.7%

Common Company is a market chief in supplying leaf tobacco and different plant-based inputs to client product producers.

The Tobacco Operations section buys and sells tobacco used to make cigarettes, cigars, pipe tobacco, and smokeless merchandise.

Common buys tobacco from its suppliers, processes it, and sells it to massive tobacco firms within the US and internationally.

Supply: Investor Presentation

The Ingredient Operations deal primarily with greens and fruits however is considerably smaller than the tobacco operations. Common has been rising this enterprise by way of acquisitions beginning in 2020.

Common Company reported its second quarter earnings outcomes on November 7. The corporate generated revenues of $710 million throughout the quarter.

Moreover, Common Company offered carryover crops throughout the interval, which added to the corporate’s income efficiency.

Click on right here to obtain our most up-to-date Certain Evaluation report on Common (preview of web page 1 of three proven beneath):

#8: S&P International (SPGI)

• 5-year anticipated annual returns: 10.1%

S&P International is a worldwide supplier of monetary companies and enterprise data and income of over $13 billion.

By way of its varied segments, it offers credit score rankings, benchmarks and indices, analytics, and different knowledge to commodity market members, capital markets, and automotive markets.

S&P International has paid dividends repeatedly since 1937 and has elevated its payout for 51 consecutive years.

S&P International posted third quarter earnings on October twenty fourth, 2024, and outcomes had been fairly robust as soon as once more. Adjusted earnings-per-share got here to $3.89, which was 25 cents forward of estimates. Earnings had been down from $4.04 in Q2, however a lot increased than $3.21 within the year-ago interval.

Income soared 16% increased year-on-year to $3.58 billion, which additionally beat estimates by $150 million. Progress within the Rankings and Indices section led the highest line increased in Q3, though energy was broad.

Click on right here to obtain our most up-to-date Certain Evaluation report on SPGI (preview of web page 1 of three proven beneath):

#7: Emerson Electrical (EMR)

• 5-year anticipated annual returns: 10.2%

Emerson Electrical is a diversified world chief in expertise and engineering. Its world buyer base and numerous product and repair choices afford it greater than $17 billion in annual income.

Emerson posted fourth quarter and full-year earnings on November fifth, 2024, and outcomes had been higher than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to $1.48 for the quarter, which was a penny forward of estimates.

Income was up 13% year-over-year to $4.62 billion, which was $60 million forward of expectations. Natural  gross sales had been up 4%, with the steadiness accruing from web acquisitions and divestitures.

Adjusted revenue margin was up 70 foundation factors year-over-year within the fourth quarter, rising to 26.2% of income. Working money stream was up 8% year-over-year to $1.073 billion, whereas free money stream was up 10% to $905 million.

Emerson additionally boosted its dividend for the 68th consecutive 12 months.

Click on right here to obtain our most up-to-date Certain Evaluation report on EMR (preview of web page 1 of three proven beneath):

#6: Johnson & Johnson (JNJ)

• 5-year anticipated annual returns: 12.0%

Johnson & Johnson was based in 1886 and has remodeled into one of many largest firms on this planet. Johnson & Johnson is a mega-cap inventory. The corporate generates annual gross sales above $99 billion.

The corporate operates a diversified enterprise mannequin, permitting it to enchantment to all kinds of consumers inside the healthcare sector.

J&J now operates two segments, prescription drugs and medical gadgets, after spinning off its client well being franchises.

Johnson & Johnson reported third-quarter 2024 gross sales development of 5.2%, reaching $22.5 billion, with operational development of 6.3%.

Supply: Investor Presentation

Nevertheless, earnings per share (EPS) decreased by 34.3%, largely resulting from a one-time particular cost and bought in-process analysis and growth (IPR&D).

Adjusted EPS fell 9.0% to $2.42, pushed by the identical IPR&D influence. The corporate made vital developments, together with approvals for therapies like TREMFYA and RYBREVANT, and the submission of a brand new basic surgical procedure robotic system, OTTAVA.

Click on right here to obtain our most up-to-date Certain Evaluation report on JNJ (preview of web page 1 of three proven beneath):

#5: Northwest Pure Gasoline (NWN)

• 5-year anticipated annual returns: 12.5%

NW Pure was based in 1859 and has grown from only a handful of consumers to serving greater than 760,000 right this moment. The utility’s mission is to ship pure fuel to its prospects within the Pacific Northwest.

The corporate’s places served are proven within the picture beneath.

Supply: Investor Presentation

Northwest Pure Holding reported a third-quarter 2024 web lack of $27.2 million, or $0.71 per share, in comparison with a web lack of $23.7 million, or $0.65 per share, in the identical interval in 2023. Income was $136.93 million, a 3.21% year-over-year lower, however exceeded expectations by $4.47 million.

For the primary 9 months of 2024, web earnings was $33.9 million, or $0.88 per share, down from $49.2 million, or $1.37 per share, for a similar interval in 2023.

The corporate added practically 17,000 fuel and water utility connections over the previous 12 months, attaining a development price of 1.9%, largely pushed by water acquisitions.

Investments of $294 million in fuel and water techniques supported reliability and development. Just lately applied new charges in Oregon embody a 4.7% common enhance for residential prospects.

Click on right here to obtain our most up-to-date Certain Evaluation report on NWN (preview of web page 1 of three proven beneath):

#4: Nordson Company (NDSN)

• 5-year anticipated annual returns: 14.0%

Nordson was based in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, however the firm can hint its roots again to 1909 with the U.S. Computerized Firm.

Right this moment the corporate has operations in over 35 international locations and engineers, manufactures, and markets merchandise used for dishing out adhesives, coatings, sealants, biomaterials, plastics, and different supplies, with purposes starting from diapers and straws to cell telephones and aerospace.

Supply: Investor Presentation

On August 14th, 2024, Nordson elevated its dividend by 15% to $0.78 per share quarterly, marking 61 years of will increase.

On December eleventh, 2024, Nordson reported fourth quarter outcomes for the interval ending October thirty first, 2024. For the quarter, the corporate reported gross sales of $744 million, 4% increased in comparison with $719 million in This autumn 2023, which was pushed by a constructive acquisition influence, and offset by natural lower of three%.

Industrial Precision noticed gross sales lower by 3%, whereas the Medical and Fluid Options and Superior Know-how Options segments had gross sales will increase of 19% and 5%, respectively. The corporate generated adjusted earnings per share of $2.78, a 3% enhance in comparison with the identical prior-year quarter.

Click on right here to obtain our most up-to-date Certain Evaluation report on NDSN (preview of web page 1 of three proven beneath):

#3: Polaris Inc. (PII)

• 5-year anticipated annual returns: 14.3%

Polaris designs, engineers, and manufactures snowmobiles, all-terrain autos (ATVs) and bikes. As well as, associated equipment and alternative components are offered with these autos by way of sellers positioned all through the U.S.

The corporate operates below 30+ manufacturers together with Polaris, Ranger, RZR, Sportsman, Indian Motorbike, Slingshot and Transamerican Auto Components. The worldwide powersports maker, serving over 100 international locations, generated $8.9 billion in gross sales in 2023.

On February 1st, 2024, Polaris raised its quarterly dividend 1.5% to $0.66.

On October twenty second, 2024, Polaris reported third quarter outcomes for the interval ending September thirtieth, 2024. For the quarter, income decreased 23.6% to $1.72 billion, which missed estimates by $50 million.

Supply: Investor Presentation

Adjusted earnings-per-share of $0.73 in contrast very unfavorably to $2.72 within the prior 12 months and was $0.18 lower than anticipated.

For the quarter, Marine gross sales had been down 36%, On-Street fell 13%, and Off-Street, the biggest part of the corporate, declined 24%. Decreases in all three companies had been largely resulting from decrease volumes.

Off-Street was negatively impacted by increased promotional spend and product combine. On-Street and Marine each suffered from weaker product combine. Gross margin contracted 204 foundation factors to twenty.6%.

Click on right here to obtain our most up-to-date Certain Evaluation report on PII (preview of web page 1 of three proven beneath):

#2: Hormel Meals (HRL)

• 5-year anticipated annual returns: 14.6%

Hormel Meals is a juggernaut within the meals merchandise trade with practically $10 billion in annual income. It has a big portfolio of category-leading manufacturers. Just some of its high manufacturers embody embody Skippy, SPAM, Applegate, Justin’s, and greater than 30 others.

It has additionally pursued acquisitions to drive development. For instance, in 2021, Hormel acquired the Planters snack nuts enterprise from Kraft-Heinz (KHC) for $3.35 billion, which has boosted Hormel’s development.

Supply: Investor Presentation

Hormel posted fourth quarter and full-year earnings on December 4th, 2024, and outcomes had been in keeping with expectations. The corporate posted adjusted earnings-per-share of 42 cents, which met estimates. Income was off 2% year-on-year to $3.14 billion, additionally hitting estimates.

Working earnings was $308 million for the quarter on an adjusted foundation, or 9.8% of income. Working money stream was $409 million for This autumn. For the 12 months, gross sales had been $11.9 billion, and adjusted working earnings was $1.1 billion, or 9.6% of income. Adjusted earnings-per-share was $1.58. Working money stream hit a report of $1.3 billion.

Steering for 2025 was initiated at $11.9 billion to $12.2 billion in gross sales, with natural web gross sales development of 1% to three%.

Click on right here to obtain our most up-to-date Certain Evaluation report on HRL (preview of web page 1 of three proven beneath):

#1: California Water Service Group (CWT)

• 5-year anticipated annual returns: 12.5%

California Water Service is a water inventory and is the third-largest publicly-owned water utility in the US.

It was based in 1926 and has six subsidiaries that present water to roughly 2 million individuals in 100 communities, primarily in California but additionally in Washington, New Mexico and Hawaii.

Supply: Investor Presentation

California Water Service reported its third quarter earnings outcomes on October thirty first. Working revenues totaled $300 million throughout the quarter, which was 18% increased than the identical quarter final 12 months.

This represents a stronger efficiency in comparison with what the analyst neighborhood had forecasted.

The working income enhance was pushed by price will increase during the last 12 months in addition to by increased accrued unbilled income in comparison with the earlier 12 months’s quarter.

Click on right here to obtain our most up-to-date Certain Evaluation report on CWT (preview of web page 1 of three proven beneath):

Closing Ideas and Extra Assets

Enrolling in DRIP shares could be a good way to compound your portfolio earnings over time. Extra assets are listed beneath for buyers considering additional analysis for DRIP shares.

For dividend development buyers considering DRIP shares, the 15 firms talked about on this article are an ideal place to start out. Every enterprise may be very shareholder pleasant, as evidenced by their lengthy dividend histories and their willingness to supply buyers no-fee DRIP shares.

At Certain Dividend, we regularly advocate for investing in firms with a excessive likelihood of accelerating their dividends every 12 months.

If that technique appeals to you, it might be helpful to flick through the next databases of dividend development shares:

• The Dividend Kings Listing is much more unique than the Dividend Aristocrats. It’s comprised of 54 shares with 50+ years of consecutive dividend will increase.
• The Excessive Dividend Shares Listing: shares that enchantment to buyers within the highest yields of 5% or extra.
• The Month-to-month Dividend Shares Listing: shares that pay dividends each month, for 12 dividend funds per 12 months.