5 Dividends That Beat Social Security’s Unpredictable COLA Adjustments
Yahoo Finance·2025-12-18 13:19

Core Insights - The volatility of Social Security's cost-of-living adjustments (COLA) poses challenges for retirees, with the 2025 COLA at 2.5%, down from 3.2% in 2024 and 8.7% in 2023 [2][9] - Dividend stocks are highlighted as a solution for consistent income growth, providing a self-adjusting income stream that often outpaces official COLA adjustments [2][3] Company Summaries - Johnson & Johnson (NYSE: JNJ): - Reports Q3 2025 revenue of $24.0 billion, a 6.8% year-over-year increase, with EPS of $2.80 exceeding estimates [4] - Maintains a 60-year track record of consecutive dividend increases, with a recent quarterly dividend growth of 4.8%, raising payments from $1.24 to $1.30 [5] - Net income surged 91% year-over-year to $5.15 billion in Q3, with fiscal 2026 sales guidance raised to $93.7 billion [5][6] - Procter & Gamble (NYSE: PG): - Holds the longest dividend growth streak at 68 consecutive years, reporting Q1 fiscal 2026 revenue of $22.40 billion, up 3.1% year-over-year [7] - EPS of $1.95 topped estimates, with net income climbing 21% to $4.78 billion [7] - The company increased its quarterly dividend from $1.0065 to $1.0568 in 2025, reflecting a 5% raise [8] - Realty Income: - Offers monthly dividends with a yield of 5.58%, having paid consistently since 1994 [9] - PepsiCo: - Provides the highest yield among consumer stocks at 3.69%, with an average annual dividend growth of 6.8% [9]