5 Stocks to Buy That Have Raised Their Dividends Every Year Since 2000

The article favors dividend growth over yield alone and highlights five companies with consecutive annual dividend increases: IBM (31 years; 3% yield), Caterpillar (32; 0.8%), ExxonMobil (45; 2.5%), AbbVie (54; 2.6%) and Coca-Cola (64; 2.5%). Caterpillar reported Q2 revenue above $20 billion, up 24% year over year, while ExxonMobil, AbbVie and Coca-Cola also reported higher Q2 revenue or earnings. IBM is the main counterpoint: its stock is down 25% this year after a Q2 earnings miss, though the author expects a rebound.

Analysis

Dividend streaks are weak proxies for forward returns: the investable question is whether earnings and cash generation can fund payout growth after reinvestment. The article’s bullish framing risks conflating durability of the dividend with durability of the current share price.

CAT has the clearest near-term operating leverage to data-center power demand, but that exposure is also a cycle: orders can be pulled forward, project timing is lumpy, and gas generators compete with grid upgrades and other backup-power solutions. After a sharp rerating, the downside is expectation compression even if demand remains healthy. Treat CAT as a momentum/earnings-quality position, not a dividend-income buy; validate order intake, backlog conversion, and segment margins before adding.

IBM’s weakness may reflect spending mix and deal timing rather than a durable loss of demand, but the article offers no evidence that delayed deals convert or that storage/memory substitution reverses. The October report is a binary near-term catalyst; revenue quality, signings, and margin trajectory matter more than the dividend streak. Avoid assuming a rebound ahead of confirmation.

ABBV’s key second-order risk is concentration: replacement growth must persist as Humira erosion continues, while pipeline outcomes determine the next leg beyond Skyrizi and Rinvoq. XOM’s payout resilience remains exposed to commodity prices and capital allocation through the cycle. KO’s steadier profile is not immune to valuation compression if rates rise or consumer demand weakens. No valuation, payout coverage, or consensus data are supplied, so relative mispricing cannot be established. The broader contrarian point: a long dividend-growth record is backward-looking and may mask a deteriorating earnings base.

Key Decisions for Investors

• Do not buy CAT solely for AI or dividend exposure after its strong run. Hold or add only on evidence that data-center-related orders are converting into backlog and margins; falsify the thesis on weakening order trends or margin guidance. Use XLI as a benchmark/hedge rather than assume the whole industrial sector shares CAT’s exposure.
• Keep IBM on an event watchlist, not a pre-earnings rebound trade. Reassess after the October report: delayed-deal conversion, signings, and earnings quality should improve before taking a long position; further deterioration in those metrics invalidates the recovery case.
• For income sleeves, compare payout growth with free-cash-flow coverage and reinvestment needs before favoring ABBV, KO, or XOM. Verify current coverage and forward guidance; do not treat consecutive annual increases as a guarantee of future increases.
• At the portfolio level, avoid a blanket ‘dividend growers’ allocation. If rates rise materially, monitor yield-sensitive valuation pressure across KO and other defensives; if energy prices weaken, reassess XOM separately rather than extrapolating its recent earnings.