Printed on September twenty second, 2025 by Bob Ciura
Compounding is what makes the inventory market such a strong automobile for wealth creation.
The distinction over time between easy curiosity and compound curiosity is staggering:
- $100 at 9% easy curiosity is $190 after 20 years
- $100 at 9% compound curiosity is $560 after 20 years
That’s almost a 3x distinction between easy and compound curiosity – and that distinction could be much more pronounced over longer time durations or the next rate of interest.
There are 3 elements of compounding:
- The expansion charge (or rate of interest, charge of return, and so forth.)
- The size of every interval
- The variety of durations
Investing returns are measured over time. You possibly can’t velocity up time; the size of every interval is fastened.
This implies compounding within the inventory market comes all the way down to the speed of return you obtain on an funding and the variety of durations over which the funding compounds.
Clearly (and sadly), we don’t get to choose the speed of return we obtain from an funding. All we will do is tilt the chances in our favor by investing in high quality shares more likely to develop earnings and dividends at a good charge.
Fortuitously, eye-popping return numbers aren’t wanted for long-term wealth creation. Persistently strong returns over longer durations of time can create very passable outcomes.
And that leads us to the third element of compounding – the variety of durations over which your funding compounds.
Lengthy-term traders ought to look to high quality dividend shares such because the Dividend Kings, which have elevated their dividends for over 50 consecutive years.
You possibly can see the total downloadable spreadsheet of all 56 Dividend Kings (together with vital monetary metrics similar to dividend yields, payout ratios, and price-to-earnings ratios) by clicking on the hyperlink beneath:
That is why investing in companies which have endurance is so vital. It results in longer-holding durations, and larger compounding.
This text will rank 10 Dividend Kings with 50+ years of dividend development, with sturdy anticipated development for the long run.
Desk of Contents
The ten shares are ranked by annual anticipated development of earnings-per-share. You possibly can immediately bounce to any particular part of the article by clicking on the hyperlinks beneath:
Lengthy-Time period Dividend Compounder #10: Parker-Hannifin Corp. (PH)
- Anticipated Development Price: 9.0%
Parker-Hannifin is a diversified industrial producer specializing in movement and management applied sciences. The corporate generates annual revenues of $20 billion. Parker-Hannifin has elevated the dividend for 69 consecutive years.
In early August, Parker-Hannifin reported (8/7/25) outcomes for the fourth quarter of 2025. Natural gross sales grew 2% over final yr’s quarter, as 9% development in aerospace greater than offset a decline in North American Enterprise. Adjusted earningsper-share grew 14%, from $6.75 to $7.69, due to sturdy gross sales and a wider revenue margin in all segments.
Parker-Hannifin exceeded the analysts’ consensus by $0.61. Notably, Parker-Hannifin has exceeded the analysts’ EPS estimates for 40 consecutive quarters, an eye-opening streak.
The corporate supplied optimistic steering for fiscal 2026. It expects 3% natural gross sales development and adjusted earnings-per-share of $28.40-$29.40. We word that administration tends to be conservative in its steering.
Click on right here to obtain our most up-to-date Certain Evaluation report on Parker-Hannifin (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #9: Illinois Software Works (ITW)
- Anticipated Development Price: 9.0%
Illinois Software 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 yr the corporate generated $15.9 billion in income. The corporate is geographically diversified, with greater than half of its income generated outdoors of the USA.
On August 1st, 2025, Illinois Software Works reported second quarter 2025 outcomes. For the quarter, income got here in at $4.1 billion, rising 1% year-over-year. Gross sales elevated 3.8% within the Automotive OEM section, the most important out of the corporate’s seven segments.
Moreover, its Polymers & Fluids, and Building Merchandise segments noticed income decline 3.4% and 6.1%, respectively.
In the meantime, Specialty Merchandise, Take a look at & Measurement and Electronics, Meals Gear, and Welding had income development of 1.1%, 1.2%, 2.1%, and a couple of.9%, respectively. Web revenue equaled $755 million or $2.58 per share in comparison with $759 million or $2.54 per share in Q2 2024.
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):
Lengthy-Time period Dividend Compounder #8: Lowe’s Cos., Inc. (LOW)
- Anticipated Development Price: 9.0%
Lowe’s Firms is the second-largest dwelling enchancment retailer within the US (after House Depot). The corporate was based in 1946 and is headquartered in Mooresville, NC. Lowe’s operates or providers greater than 1,700 dwelling enchancment and {hardware} shops within the U.S.
On August 20, 2025, Lowe’s introduced it would purchase Basis Constructing Supplies (FBM), for $8.8 billion. FBM is a distributor of inside constructing merchandise for big residential and industrial professionals in new development and restore and rework. It generated $6.5 billion in income in 2024. The deal is anticipated to shut within the fourth quarter.
Lowe’s reported second quarter 2025 outcomes on August twentieth, 2025. Complete gross sales got here in at $24.0 billion in comparison with $23.6 billion in the identical quarter a yr in the past. Comparable gross sales elevated by 1.1%. Web earnings-per-share of $4.27 in comparison with $4.17 in second quarter 2024, and have been pushed by sturdy efficiency in Professional and DIY, partly offset by
unfavorable climate.
The corporate didn’t repurchase any of its frequent inventory within the quarter, but it surely paid out $673 million in dividends. Lowe’s up to date its fiscal 2025 outlook and now expects to earn adjusted EPS of $12.20 to $12.45 on whole gross sales of $84.5 to $85.5 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on LOW (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #7: Automated Knowledge Processing (ADP)
- Anticipated Development Price: 9.0%
Automated Knowledge Processing is without doubt one of the largest enterprise providers outsourcing firms on this planet. The corporate supplies payroll providers, human sources know-how, and different enterprise operations to greater than 700,000 company clients. Automated Knowledge Processing produces annual income of about $20 billion.
ADP posted fourth quarter earnings on July thirtieth, 2025, and outcomes have been higher than anticipated as soon as once more. For the quarter, adjusted earnings-per-share got here to $2.26, which was three cents forward of estimates. Earnings rose from $2.09 a yr in the past. Income was up greater than 7% year-over-year to $5.1 billion, beating estimates by $50 million.
Employer Providers income was $3.47 billion, up 8% year-over-year. Phase earnings have been $1.16 billion, rising 9% as pretax margin was up 50 foundation factors to 33.5% of income. PEO Providers income was up 7% to $1.66 billion. Phase earnings have been up 6% to $220 million on pretax margin that declined 20 foundation factors to 13.2%.
Bills rose from $3.77 billion a yr in the past to $4.03 billion in This fall. Adjusted EBIT margin was 23.7% of income, up from 23.3% a yr earlier. Steering was initiated at $10.81 to $11.01 in adjusted earnings-per-share.
Click on right here to obtain our most up-to-date Certain Evaluation report on ADP (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #6: W.W. Grainger Inc. (GWW)
- Anticipated Development Price: 10.0%
W.W. Grainger, headquartered in Lake Forest, IL, is without doubt one of the largest business-to-business distributors of upkeep, restore, and operations (“MRO”) provides on this planet. The corporate was based in 1927 and generated gross sales of $17.2 billion in 2024.
On August 1st, 2025, W.W. Grainger posted its Q2 outcomes for the interval ending June thirtieth, 2025. For the quarter, revenues have been $4.55 billion, up 5.6% on a reported foundation and up 5.1% on a each day, fixed foreign money foundation in comparison with final yr.
The Excessive-Contact Options section noticed gross sales develop by 2.5% on a reported foundation, and a couple of.8% on a each day, fixed foreign money foundation resulting from broad-based development throughout all geographies.
Within the Infinite Assortment section, gross sales have been up 19.7%. Income development for the section was pushed by sturdy efficiency at each MonotaRO and Zoro.
Web revenue equaled $482 million, up 2.6% in comparison with Q2-2024. Web revenue was supported by sturdy expense leverage in Infinite Assortment, whilst gross margin declined 80 foundation factors to 38.5%, and working margin fell 20 foundation factors to 14.9%.
Margin strain in Excessive-Contact from tariff-related inflation was partially offset by enhancements at Zoro. Earnings-per-share got here in at $9.97, 4.8% greater year-over-year, and have been aided by a decrease share rely.
Click on right here to obtain our most up-to-date Certain Evaluation report on GWW (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #5: Nordson Corp. (NDSN)
- Anticipated Development Price: 10.0%
Nordson has operations in over 35 nations and engineers, manufactures, and markets merchandise used for allotting adhesives, coatings, sealants, biomaterials, plastics, and different supplies, with purposes starting from diapers and straws to cell telephones and aerospace. The corporate generated $2.7 billion in gross sales final fiscal yr.
On August twentieth, 2025, Nordson reported third quarter outcomes for the interval ending July 31, 2025. For the quarter, the corporate reported gross sales of $742 million, 12% greater in comparison with $662 million in Q3 2024, pushed by an 8% optimistic acquisition affect, 2% natural gross sales enhance, and a couple of% favorable foreign exchange translation.
The Industrial Precision, Superior Expertise, and Medical and Fluid Options segments noticed gross sales enhance by 1% 17%, and 32%, respectively.
The corporate generated adjusted earnings per share of $2.73, a 13% enhance in comparison with the identical prior yr interval. The backlog declined 5% sequentially resulting from sturdy shipments.
On August twenty eighth, 2025, Nordson elevated its dividend by 5% to $0.82 per share quarterly, marking 62 years of will increase.
Nordson’s outcomes up to now are nonetheless consistent with its preliminary FY 2025 outlook, which anticipated gross sales of $2.75 billion to $2.87 billion and adjusted EPS of $9.70 to $10.50.
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):
Lengthy-Time period Dividend Compounder #4: Walmart Inc. (WMT)
- Anticipated Development Price: 11.0%
Walmart traces its roots again to 1945 when Sam Walton opened his first low cost retailer. The corporate has since grown into the most important retailer on this planet, serving greater than 230 million clients every week. Income ought to be round $700 billion this yr.
Walmart posted second quarter earnings on August twenty first, 2025, and outcomes have been higher than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to 68 cents, which was six cents forward of estimates. Income was up nearly 5% year-on-year to $177.4 billion, beating estimates by $3 billion.
Comparable gross sales within the US have been up 4.6%, 50 foundation factors forward of consensus. Transactions have been 1.5% greater, whereas the common ticket was up 3.1%. E-commerce gross sales have been up 26% and contributed 350 foundation factors to comparable gross sales, implying the bodily shops contributed 110 foundation factors.
Sam’s Membership comparable gross sales have been up 5.9%, on power in grocery and well being & wellness. Worldwide gross sales have been up 5.5% to $31.2 billion. The promoting enterprise was up 46% through the quarter.
Adjusted working revenue was up simply 0.4% through the quarter on gross sales leverage, offset by margin losses from tariffs. The corporate ended Q2 with money of $9.4 billion and whole debt of $0.3 billion. Free money move was $6.9 billion, and inventories have been up 3.8% year-over-year to $57.7 billion.
Steering is for 3.75% to 4.75% gross sales development for the yr, up barely from prior steering.
Click on right here to obtain our most up-to-date Certain Evaluation report on WMT (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #3: S&P International Inc. (SPGI)
- Anticipated Development Price: 11.0%
S&P International is a worldwide supplier of economic providers and enterprise data and income of over $13 billion.
By means of its numerous segments, it supplies credit score scores, benchmarks and indices, analytics, and different information to commodity market individuals, capital markets, and automotive markets.
S&P International has paid dividends constantly since 1937 and has elevated its payout for 51 consecutive years.
S&P posted second quarter earnings on July thirty first, 2025, and outcomes have been higher than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to $4.43, which beat expectations by 21 cents. Income was up 6% year-over-year to $3.76 billion, beating estimates by $80 million.
Steering was boosted to $17.00 to $17.25 in adjusted earnings-per-share, up barely from prior. Income can be anticipated to rise about 6% this yr, up from 5% prior.
Money from working actions much less capex ought to be about $5.5 billion this yr, which is unchanged. Bills have been $2.22 billion, up fractionally from Q1 and up from $2.11 billion a yr in the past.
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):
Lengthy-Time period Dividend Compounder #2: Stepan Co. (SCL)
- Anticipated Development Price: 15.0%
Stepan manufactures fundamental and intermediate chemical compounds, together with surfactants, specialty merchandise, germicidal and material softening quaternaries, phthalic anhydride, polyurethane polyols and particular substances for the meals, complement, and pharmaceutical markets.
It’s organized into three distinct enterprise strains: surfactants, polymers, and specialty merchandise. These companies serve all kinds of finish markets.
The surfactants enterprise is Stepan’s largest by income. A surfactant is an natural compound that comprises each water-soluble and water-insoluble elements.
Stepan posted second quarter earnings on July thirtieth, 2025, and outcomes have been a lot worse than anticipated on each the highest and backside strains. Adjusted earnings-per-share got here to 52 cents, which was nowhere near estimates for 90 cents. Income was up 7% year-over-year to $595 million, lacking estimates by $3.6 million.
Surfactant gross sales have been $412 million, with promoting costs hovering 11% on pass-through of uncooked materials prices, primarily. Gross sales volumes have been down 1%. Polymers web gross sales have been up 2% to $163 million. Volumes have been up 7% however promoting costs declined 7%. Specialty Product gross sales have been $20.5 million, up 22%, however margins worsened.
Adjusted EBITDA was $51.4 million, up 8% year-over-year. Adjusted web revenue was $12 million. Money from operations got here to $11.2 million, and free money move was detrimental $14.4 million on greater working capital necessities, in addition to uncooked materials builds.
Click on right here to obtain our most up-to-date Certain Evaluation report on SCL (preview of web page 1 of three proven beneath):
Lengthy-Time period Dividend Compounder #1: Nucor Corp. (NUE)
- Anticipated Development Price: 15.7%
Nucor is the most important publicly traded US-based metal company primarily based on its market capitalization. The metal trade is notoriously cyclical, which makes Nucor’s streak of 52 consecutive years of dividend will increase much more exceptional.
On July 28, 2025, Nucor Company reported its monetary outcomes for the second quarter of 2025. The corporate achieved web earnings attributable to Nucor stockholders of $2.60 per diluted share, with web gross sales reaching $8.46 billion, up 8% from the second quarter of 2024. EBITDA was $1.30 billion, reflecting operational power.
All three reporting segments—metal mills, metal merchandise, and uncooked supplies—confirmed sequential earnings development, pushed by greater common promoting costs in sheet and plate mills, steady pricing with elevated volumes, and improved scrap processing operations, respectively.
Complete tons shipped to outdoors clients elevated 8% year-over-year to roughly 6,820,000, with metal mill shipments up 10%. Working charges at metal mills rose to 85%, in comparison with 80% within the prior quarter and 75% in the identical quarter final yr.
Click on right here to obtain our most up-to-date Certain Evaluation report on NUE (preview of web page 1 of three proven beneath):
Extra Studying
The Dividend Kings record shouldn’t be the one solution to shortly display screen for shares that commonly pay rising dividends.
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