Core Insights - The article discusses the importance of investing in dividend stocks, particularly those with a history of consistent dividend growth, which can provide stability during economic downturns [2][3] Dividend Stocks Overview - Companies that consistently raise dividends are often strong, profitable, and financially stable, making them valuable during economic slowdowns [2] - Dividend-growth stocks tend to have durable competitive advantages, allowing them to maintain profit margins even during high inflation [2] - Historically, dividends have grown at an average annual rate of 5.7% since 1957, outpacing the average inflation rate by over 2% [3] - Stock prices are noted to be more than twice as volatile as their dividend cash flows, indicating that dividend stocks may offer a more stable investment [4] Methodology for Stock Selection - The article outlines a methodology for selecting dividend stocks based on year-to-date highest-returning stocks as of October 9, 2025 [6] Featured Dividend Stocks - Fastenal Company (NASDAQ:FAST) - YTD Return as of October 9: 31.55% - Fastenal is linked to the health of the US and global economies and has a strong dividend history with 26 consecutive years of increases [8][10] - Current quarterly dividend: $0.22 per share, with a dividend yield of 1.88% [10] - General Dynamics Corporation (NYSE:GD) - YTD Return as of October 9: 31.7% - The company is a major player in military shipbuilding and has raised its dividend for 28 consecutive years [11][12] - Current quarterly dividend: $1.50 per share, with a dividend yield of 1.75% [12] - Cardinal Health, Inc. (NYSE:CAH) - YTD Return as of October 9: 33.7% - Cardinal Health is a major distributor of healthcare products and has increased its dividends for 39 consecutive years [13][15] - Current quarterly dividend: $0.5107 per share, with a dividend yield of 1.30% [15]
12 Must-Buy Dividend Stocks to Invest in