Updated on March 13th, 2025 by Bob Ciura
DRIP stands for Dividend Reinvestment Plan. When an investor is enrolled in DRIP stocks, it means that incoming dividend payments are used to purchase more shares of the issuing company – automatically.
Many businesses offer DRIPs that require the investors to pay fees. Obviously, paying fees is a negative for investors. As a general rule, investors are better off avoiding DRIP stocks that charge fees.
Fortunately, many companies offer no-fee DRIP stocks. These allow investors to use their hard-earned dividends to build even larger positions in their favorite high-quality, dividend-paying companies – for free.
The Dividend Champions are a group of quality dividend stocks that have raised their dividends for at least 25 consecutive years.
You can download your free copy of the Dividend Champions list, along with relevant financial metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the link below:
Think about the powerful combination of DRIPs and Dividend Champions…
You are reinvesting dividends into a company that pays higher dividends every year. This means that every year you get more shares – and each share is paying you more dividend income than the previous year.
This makes a powerful (and cost-effective) compounding machine.
This article takes a look at the top 15 Dividend Champions that are no-fee DRIP stocks, ranked in order of expected total returns from lowest to highest.
The updated list for 2025 includes our top 15 Dividend Champions, ranked by expected returns according to the Sure Analysis Research Database, that offer no-fee DRIPs to shareholders.
You can skip to analysis of any individual Dividend Champion below:
Additionally, please see the video below for more coverage.
#15: Realty Income (O)
- 5-year expected annual returns: 9.0%
Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.
Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties.
This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.
Source: Investor Presentation
On February 25, 2025, Realty Income Corporation reported its financial results for the fourth quarter of 2024.
The company achieved a 1.8% increase in core funds from operations (FFO) for the year, alongside over $550 million in acquisition volume. The year concluded with a strong 98.5% occupancy rate.
These achievements reflect the dedication and expertise of Realty Income’s best-in-class team, positioning the company well for the near term.
Click here to download our most recent Sure Analysis report on Realty Income (preview of page 1 of 3 shown below):
#14: Illinois Tool Works (ITW)
- 5-year expected annual returns: 9.3%
Illinois Tool Works is a diversified multi-industrial manufacturer with seven unique operating segments: Automotive, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products and Specialty Products.
Last year the company generated $15.9 billion in revenue.
On February 5th, 2025, Illinois Tool Works reported fourth quarter 2024 results for the period ending December 31st, 2024. For the quarter, revenue came in at $3.9 billion, shrinking 1.3% year-over-year.
Sales declined 3.7% in the Automotive OEM segment, the largest out of the company’s seven segments. The Food Equipment and Test & Measurement and Electronics segments grew revenues by 2.7% and 2.2%, respectively.
Click here to download our most recent Sure Analysis report on ITW (preview of page 1 of 3 shown below):
#13: A.O. Smith (AOS)
- 5-year expected annual returns: 10.0%
A.O. Smith is a leading manufacturer of residential and commercial water heaters, boilers and water treatment
products. It generates two-thirds of its sales in North America, and most of the rest in China.
A.O. Smith has raised its dividend for 30 years in a row, making the company a Dividend Aristocrat. The company was founded in 1874 and is headquartered in Milwaukee, WI.
A.O. Smith reported its fourth quarter earnings results on January 30. The company generated revenues of $912 million during the quarter, which represents a decline of 8% compared to the prior year’s quarter.
A.O. Smith’s revenues were down by 7% in North America, but the international business saw a wider decline, primarily due to lower sales in China, which has ongoing troubles in its real estate market.
A.O. Smith generated earnings-per-share of $0.85 during the fourth quarter, which was down 12% on a year over year basis. This was caused by lower revenues and lower margins, with buybacks not being able to fully offset these headwinds.
Click here to download our most recent Sure Analysis report on AOS (preview of page 1 of 3 shown below):
#12: Universal Health Realty Trust (UHT)
- 5-year expected annual returns: 9.6%
Universal Health Realty Income Trust operates as a real estate investment trust (REIT), specializing in the healthcare sector. The trust owns healthcare and human service-related facilities.
Its property portfolio includes acute care hospitals, medical office buildings, rehabilitation hospitals, behavioral healthcare facilities, sub-acute care facilities and childcare centers. Universal Health’s portfolio consists of 69 properties in 20 states.
On October 24, 2024, UHT reported its third quarter results. Funds from Operations (FFO) saw a slight improvement, rising to $11.3 million, or $0.82 per diluted share, from $11.2 million, or $0.81 per diluted share, in the third quarter of 2023. This increase in FFO was mainly due to the rise in net income during the period.
The company maintained a strong liquidity position with significant cash reserves and continued strategic investments to enhance its property portfolio.
Click here to download our most recent Sure Analysis report on UHT (preview of page 1 of 3 shown below):
#11: Tompkins Financial (TMP)
- 5-year expected annual returns: 9.7%
Tompkins Financial is a regional financial services holding company headquartered in Ithaca, NY that can trace its roots back more than 180 years. It has total assets of about $8 billion, which produce about $300 million in annual revenue.
The company offers a wide range of services, including checking and deposit accounts, time deposits, loans, credit cards, insurance services, and wealth management to its customers in New York and Pennsylvania.
Tompkins also sports a 38-year dividend increase streak after boosting its payout for November 2024.
Tompkins posted fourth quarter and full-year earnings on January 31st, 2025, and results were somewhat mixed.
Earnings-per-share came in 15 cents ahead of estimates at $1.37. Revenue was up more than 8% year-over-year to $77.1 million, but missed estimates by about 1%.
Net interest margin for the fourth quarter was 2.93%, up from 2.79% in the third quarter, and up from 2.82% a year ago.
Total average cost of funds was 1.88% for Q4, down 13 basis points from Q3 as funding mix and lower interest rates both contributed.
Click here to download our most recent Sure Analysis report on TMP (preview of page 1 of 3 shown below):
#10: Northwest Natural Holding (NWN)
- 5-year expected annual returns: 10.4%
NW Natural was founded in 1859 and has grown from just a handful of customers to serving more than 760,000 today. The utility’s mission is to deliver natural gas to its customers in the Pacific Northwest.
The company’s locations served are shown in the image below.
Source: Investor Presentation
On February 28, 2025, Northwest Natural Holding Company (NWN) reported its financial results for the fourth quarter of 2024.
The company achieved an adjusted net income of $90.6 million for the full year, or $2.33 per share, slightly down from $93.9 million, or $2.59 per share, in 2023.
This decrease was primarily due to regulatory lag affecting the first ten months of 2024 until new Oregon gas utility rates became effective on November 1.
Click here to download our most recent Sure Analysis report on NWN (preview of page 1 of 3 shown below):
#9: Nucor Corp. (NUE)
- 5-year expected annual returns: 10.8%
Nucor is the largest publicly traded US-based steel corporation based on its market capitalization. The steel industry is notoriously cyclical, which makes Nucor’s streak of 52 consecutive years of dividend increases even more remarkable.
Nucor Corporation reported its fourth-quarter 2024 earnings on January 28, 2025, highlighting strong operational performance despite ongoing challenges in the steel industry.
The company posted net earnings of $287 million, or $1.22 per share, and $8.46 per share for the full year. EBITDA reached $751 million for the quarter and nearly $4.4 billion for the year.
Source: Investor Presentation
Nucor ended 2024 with $4.1 billion in cash, reflecting its robust financial position.
As a commodity producer, Nucor is vulnerable to fluctuations in the price of steel. Steel demand is tied to construction and the overall economy.
Investors should be aware of the significant downside risk of Nucor as it is likely to perform poorly in a protracted recession.
That said, Nucor has raised its base dividend for 52 straight years. This indicates the strength of its business model and management team.
Click here to download our most recent Sure Analysis report on NUE (preview of page 1 of 3 shown below):
#8: Johnson & Johnson (JNJ)
- 5-year expected annual returns: 11.1%
Johnson & Johnson is a diversified health care company and a leader in the area of innovative medicines and medical devices Johnson & Johnson was founded in 1886 and employs nearly 132,000 people around the world.
On January 22nd, 2025, Johnson & Johnson announced fourth quarter and full year results for the period ending December 31st, 2024.
Source: Investor Presentation
For the quarter, revenue grew 5.1% to $22.5 billion, which beat estimates by $50 million. Adjusted earnings-per-share of $2.04 compared to $2.29 in the prior year, but this was $0.02 above expectations.
For the year, revenue grew 4.3% to $88.8 billion while adjusted earnings-per-share of $9.98 was up slightly from the prior year. Results included adjustments related to the costs of acquisitions.
Click here to download our most recent Sure Analysis report on JNJ (preview of page 1 of 3 shown below):
#7: Polaris Inc. (PII)
- 5-year expected annual returns: 11.3%
Polaris designs, engineers, and manufactures snowmobiles, all-terrain vehicles (ATVs) and motorcycles. In addition, related accessories and replacement parts are sold with these vehicles through dealers located throughout the U.S.
The company operates under 30+ brands including Polaris, Ranger, RZR, Sportsman, Indian Motorcycle, Slingshot and Transamerican Auto Parts. The global powersports maker, serving over 100 countries, generated $7.2 billion in sales in 2024.
Source: Investor Presentation
On January 28th, 2025, Polaris announced fourth quarter and full year results. For the quarter, revenue declined 23.6% to $1.75 billion, but this was $70 million higher than excepted. Adjusted earnings-per-share of $0.92 compared very unfavorably to $1.98 in the prior year, but topped estimates by $0.02.
For the year, revenue fell 19.7% to $7.12 billion while adjusted earnings-per-share of $3.25 was down from $9.16 in 2023.
For the quarter, Marine sales declined 4%, On-Road was lower by 21%, and Off-Road, the largest component of the company, decreased 25%.
As with previous quarters, decreases in all three businesses were mostly due to lower volumes. Off-Road was also negatively impacted planned reductions in shipments. Parts, Garments, and Accessories were weaker in the Off-Road and On-Road segments.
Click here to download our most recent Sure Analysis report on PII (preview of page 1 of 3 shown below):
#6: New Jersey Resources (NJR)
- 5-year expected annual returns: 11.9%
New Jersey Resources provides natural gas and clean energy services, transportation, distribution, asset management and home services through its five main subsidiaries. The company owns both regulated and non-regulated operations.
NJR’s principal subsidiary, New Jersey Natural Gas (NJNG), owns and operates natural gas transportation and distribution infrastructure serving over half a million customers.
NJR Clean Energy Ventures (CEV) invests in and operates solar projects, to provide customers with low-carbon solutions.
NRJ Energy Services manages a portfolio of natural gas transportation and storage assets, as well as provides physical natural gas services to customers in North America.
The midstream subsidiary owns and invests in several large midstream gas projects.
Finally, the home services business provides heating, central air conditioning, water heaters, standby generators, and solar products to residential homes.
Source: Investor Presentation
New Jersey Resources was founded in 1952 and has paid a quarterly dividend since. The company has increased its annual dividend for 28 consecutive years.
On November 25th, 2024, NJR sold its 91MW residential solar portfolio to Spruce Power Holdings Corporation (SPRU) for $132.5 million, which it will use to pay down debt and for working capital.
New Jersey Resources reported first quarter 2025 results on February 3rd, 2025, for the period ending December 31st, 2024. First quarter net income of $131.3 million compared favorably to the prior year quarter’s $89.4 million.
Consolidated net financial earnings (NFE) amounted to $128.9 million, compared to net financial earnings (NFE) of $72.4 million in Q1 2024 and NFE per share of $1.29 compared to $0.74 per share one year ago.
Click here to download our most recent Sure Analysis report on NJR (preview of page 1 of 3 shown below):
#5: Emerson Electric (EMR)
- 5-year expected annual returns: 11.9%
Emerson Electric is a diversified global leader in technology and engineering. Its global customer base and diverse product and service offerings afford it more than $17 billion in annual revenue.
Emerson posted first quarter earnings on February 5th, 2025, and results were mixed. Adjusted earnings-per-share came to $1.38, which was a dime ahead of estimates. Revenue was up 1.5% year-over-year to $4.18 billion, but missed estimates by $40 million.
Underlying sales rose 2%, and adjusted segment EBITDA margin was 28% of revenue, a 340-basis point improvement from the year-ago period. Gross profit reached a record level of 53.5% of revenue, supported by operational efficiencies, cost controls, and acquisition synergies.
Free cash flow was $694 million, up 89% year-over-year, with working capital improvements being the primary driver. Emerson’s backlog rose to $7.3 billion, excluding forex translation impacts.
Click here to download our most recent Sure Analysis report on EMR (preview of page 1 of 3 shown below):
#4: Arrow Financial Corporation (AROW)
- 5-year expected annual returns: 12.7%
Arrow Financial Corporation is a multi-bank holding company based in Glen Falls, New York. The company operates through two main subsidiary banks, the Glens Falls National Bank and Trust Company, and the Saratoga National Bank and Trust Company.
Arrow Financial Corporation is also the parent company of North Country Investment Advisers and Update Agency, an insurance agency. The company is a small cap, and it produces about $163 million in annual revenue. Arrow Financial has increased its dividend for 28 consecutive years.
Arrow posted fourth quarter and full-year earnings on January 30th, 2025, with earnings-per-share coming to 27 cents, and revenue at just over $31 million.
The company’s adjusted net income was $7.8 million, or 47 cents per share after removing non-recurring items. These were related to charges and expenses related to the repositioning of the securities portfolio, primarily.
Net interest margin came to 2.83%, which was up from 2.78% in the prior quarter. That’s still quite low based upon our universe of banks. Loan growth was 7% on an annualized basis, or $59 million, from Q3. Loan balances ended the year at $3.4 billion, which is a record for Arrow.
Click here to download our most recent Sure Analysis report on AROW (preview of page 1 of 3 shown below):
#3: S&P Global (SPGI)
- 5-year expected annual returns: 13.6%
S&P Global is a worldwide provider of financial services and business information and revenue of over $13 billion.
Through its various segments, it provides credit ratings, benchmarks and indices, analytics, and other data to commodity market participants, capital markets, and automotive markets.
S&P Global has paid dividends continuously since 1937 and has increased its payout for 51 consecutive years.
S&P posted fourth quarter and full-year earnings on February 11th, 2025, and results were much better than expected on both the top and bottom lines.
Adjusted earnings-per-share came to $3.77, which was a staggering 30 cents ahead of estimates. Earnings rose from $3.13 a year ago.
Revenue was up 14% year-over-year to $3.59 billion, beating estimates by $90 million. The company posted revenue growth in all of its operating segments, in addition to strong operating margin expansion.
Operating expenses rose slightly from $2.26 billion to $2.33 billion year-over-year. That led to operating profit of $1.68 billion, sharply higher from $1.39 billion a year ago.
With dividend growth above 10%, SPGI is one of the rock solid dividend stocks.
Click here to download our most recent Sure Analysis report on SPGI (preview of page 1 of 3 shown below):
#2: Nordson Corporation (NDSN)
- 5-year expected annual returns: 14.6%
Nordson was founded in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, but the company can trace its roots back to 1909 with the U.S. Automatic Company.
Today the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials, with applications ranging from diapers and straws to cell phones and aerospace.
Source: Investor Presentation
On December 11th, 2024, Nordson reported fourth quarter results for the period ending October 31st, 2024. For the quarter, the company reported sales of $744 million, 4% higher compared to $719 million in Q4 2023, which was driven by a positive acquisition impact, and offset by organic decrease of 3%.
Industrial Precision saw sales decrease by 3%, while the Medical and Fluid Solutions and Advanced Technology Solutions segments had sales increases of 19% and 5%, respectively.
The company generated adjusted earnings per share of $2.78, a 3% increase compared to the same prior year period.
Click here to download our most recent Sure Analysis report on NDSN (preview of page 1 of 3 shown below):
#1: Hormel Foods (HRL)
- 5-year expected annual returns: 14.9%
Hormel Foods is a juggernaut in the food products industry with nearly $10 billion in annual revenue. It has a large portfolio of category-leading brands. Just a few of its top brands include include Skippy, SPAM, Applegate, Justin’s, and more than 30 others.
It has also pursued acquisitions to drive growth. For example, in 2021, Hormel acquired the Planters snack nuts business from Kraft-Heinz (KHC) for $3.35 billion, which has boosted Hormel’s growth.
Source: Investor Presentation
Hormel posted fourth quarter and full-year earnings on December 4th, 2024, and results were in line with expectations. The company posted adjusted earnings-per-share of 42 cents, which met estimates. Revenue was off 2% year-on-year to $3.14 billion, also hitting estimates.
Operating income was $308 million for the quarter on an adjusted basis, or 9.8% of revenue. Operating cash flow was $409 million for Q4. For the year, sales were $11.9 billion, and adjusted operating income was $1.1 billion, or 9.6% of revenue. Adjusted earnings-per-share was $1.58. Operating cash flow hit a record of $1.3 billion.
Guidance for 2025 was initiated at $11.9 billion to $12.2 billion in sales, with organic net sales growth of 1% to 3%.
Click here to download our most recent Sure Analysis report on HRL (preview of page 1 of 3 shown below):
Final Thoughts and Additional Resources
Enrolling in DRIP stocks can be a great way to compound your portfolio income over time. Additional resources are listed below for investors interested in further research for DRIP stocks.
For dividend growth investors interested in DRIP stocks, the 15 companies mentioned in this article are a great place to start. Each business is very shareholder friendly, as evidenced by their long dividend histories and their willingness to offer investors no-fee DRIP stocks.
At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year.
If that strategy appeals to you, it may be useful to browse through the following databases of dividend growth stocks:
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 54 stocks with 50+ years of consecutive dividend increases.
- The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
- The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
Thanks for reading this article. Please send any feedback, corrections, or questions to [email protected].