Wall Street’s Best-Kept Secret? These 3 Dividend Stocks Are Outperforming Big Tech

Bull market by Phive2015 via iStock

Investors often seek reliable dividend stocks for long-term income in retirement. Although investments in tech and other high-growth sectors may offer more exciting growth, dividend stocks can provide unmatched stability, especially in uncertain times. Dividend Kings are some of the most reliable companies for such investment choices. 

Dividend Kings are stocks that have consistently increased their dividends for at least 50 consecutive years. These companies have demonstrated the ability to consistently overcome market threats - including the most recent trade wars. 

Case in point: since the beginning of the year, the Nasdaq 100 is down over 8% and the S&P 500 is down 4.6%. However, the companies on this list are doing just fine, quietly proving their ability to conquer market volatility.

So, today, I’ll look at three Dividend Kings outperforming the market and show you how I got the list. 

How I Came Up With The Following Dividend Kings

Using Barchart’s Stock Screener, I selected the following filters to get my list: 

  • YTD Performance Difference From Market: 1 and above. This filter limits the results to stocks that have outperformed the S&P 500 by at least one percentage point in YTD.
  • YTD Percent Change: 1 and above. Of course, outperforming the market isn’t all that’s needed. The stock needs to be higher year-to-date.
  • Current Analyst Rating: 4 (Moderate Buy) to 5 (Strong Buy). This filter shortlists the stock according to analysts' confidence. It is an effective aid for gauging the market pulse. A moderate or strong buy reflects a recommendation for buying based on analysis.
  • Watchlists: Dividend Kings: Limited to companies that have increased dividend payouts to at least 50 years. 

With these filters set, I ran the screen and got eight results:

Then, I arranged the results based on their highest to lowest YTD change and took the top three. So, let’s kick off this list with number one: 

Abbott Laboratories (ABT)

Abbott Laboratories is among the world’s biggest healthcare companies. It caters to over 160 countries, producing medical devices, diagnostics, medicines, and nutritional supplies. The company is so pervasive in the healthcare sector that there’s a good chance you or anyone you know uses Abbott products regularly. 

Abbott Laboratories reported $10.3 billion in sales for Q1’25, a 4.0% increase YOY. This translated into $1.3 billion in net income - up 8% YOY. The improvements are reflected in Abbot’s stock price, which grew almost 18% YTD and has outperformed the S&P 500 by 22%. 

Abbott has also increased its dividends for 53 consecutive years. The company pays $2.36 per share annually, reflecting a 1.7%% yield. Finally, analysts consistently rate ABT stock as a strong buy—and this shouldn’t be surprising since it’s consistently named one of the top stocks in the healthcare sector. 

Coca-Cola Company (KO)

Coca-Cola Company is one of the largest beverage companies, delivering smiles in more than 200 countries through 2.2 billion daily drink sales. The company has over 200 bottling partners across 950 production facilities spread all over the world. Not only that, but Coca-Cola is also famous for its unrelenting commitment to shareholder value. The company has increased its dividends for 63 consecutive years and paid out dividends for over 100 years. 

YTD, KO stock has outperformed the S&P 500 by nearly 20% and is up 15%. Today, the company’s dividend is $2.04 annually, translating to an approximate 2.8% yield. The stock also maintains a consensus strong buy rating with an impressive score of 4.87 out of 5. 

H20 America (HTO)

The last Dividend King on the list is a company you may have never heard of. Previously operating as SJW Corp, as of May 6, 2025, it rebranded as H2O America under the ticker (NASDAQ: HTO). 

H2O America is a water utility company that operates through its subsidiaries, including San Jose Water, which serves over 1 million people through approximately 232,000 connections and many more opportunities to thrive.

The company pays a 42-cent quarterly dividend, translating into an approximate 3% yield. The stock has also recovered nicely from its lows at the end of last year, growing by more than 11% YTD while outperforming the S&P by 15.39%. Analysts are also optimistic about the stock, rating HTO stock a moderate buy

Final Thoughts

Despite volatile market conditions, these three Dividend Kings have a history of delivering both capital growth and income to investors. But as they say, past performance shouldn’t be seen as an indication of the future, so it’s always best to keep an eye on the market, especially during economic uncertainties, trade wars, and other market headwinds. That way, you’ll have the information you need to make the investment decisions best for you. 


On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.