Investors looking for reliable dividend growth stocks for 2027 should consider companies with a proven track record of increasing payouts. Data from Hartford Funds and Ned Davis Research shows that S&P 500 companies that grew or started paying dividends delivered total returns of about 10.2% a year from 1973 through 2025, compared to 4.2% for non-payers. Five standout stocks, Coca-Cola (NYSE: KO), Colgate-Palmolive (NYSE: CL), Procter & Gamble (NYSE: PG), PepsiCo (NASDAQ: PEP), and Target (NYSE: TGT), have each raised their dividends for over 50 straight years, making them strong candidates for long-term investment.
Coca-Cola, with a 2.2% yield based on its quarterly payment of $0.53 per share, has increased its dividend annually for 64 years. Management has raised the dividend by an average of 4.5% per year over the past five years, and the company distributed roughly 78% of free cash flow last year. Analysts expect earnings to grow by about 7% annually over the next five years, supporting further dividend increases.
Colgate-Palmolive offers a 2.2% yield with a quarterly payment of $0.53 per share and has raised its dividend for over 60 years. The company currently pays out just 44% of trailing-12-month free cash flow, leaving room for larger raises. Analysts forecast about 5% annual earnings growth over the next five years. Procter & Gamble, with a 2.7% yield based on a quarterly payment of $1.0885 per share, has raised its dividend for 70 straight years and expects about 5% annual earnings growth.
PepsiCo stands out with the highest yield among the five stocks at about 4.3%, based on a quarterly payment of $1.48 per share. The company has increased its payout by an average of nearly 7% per year over the past five years and paid out about 75% of trailing free cash flow. Analysts expect about 5% annual earnings growth. Target, yielding nearly 3% with a quarterly payment of $1.16 per share, has increased its payout by about 11% per year over the past five years and expects about 6% annual earnings growth.