in our free newsletter.

Thousands benefit from our email every week.

Costco (COST)

In an era where physical stores are under serious threat from online merchants, Costco remains a brick-and-mortar beast.

Over the past five years, Costco shares have surged more than 230%. And while many growth stocks are experiencing sharp declines in 2022, Costco is basically flat year to date.

The membership-only big-box store operator is known for selling numerous consumer staples products at low prices. When people become more budget-conscious as a result of inflation, the warehouse retailer’s value proposition is tough to ignore.

With a dividend yield of just 0.6%, Costco may not get the attention of most income investors. But its payout has been consistently on the rise. Since the company started paying quarterly dividends in 2004, management has raised the payout every single year.

Costco’s last dividend hike was announced in April 2021. Given how well the company’s business has been doing, another payout increase should be right around the corner.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Johnson & Johnson (JNJ)

With deeply entrenched positions in consumer health, pharmaceuticals and medical devices markets, healthcare giant Johnson & Johnson has delivered consistent returns to investors through thick and thin.

Not only does Johnson & Johnson post recurring annual profits, but it also grows them consistently: Over the past 20 years, Johnson & Johnson’s adjusted earnings have increased at an average annual rate of 8%.

The stock has been trending up for decades. And it is demonstrating its resilience again in 2022: While the broad market has declined, JNJ is up 2% year to date.

The best part: Shareholders can look forward to higher dividends every year.

Johnson & Johnson announced its 59th consecutive annual dividend increase last April. It should have no problem continuing that track record — meaning another hike should be made official next month. JNJ currently yields 2.4%.

Hess Midstream (HESM)

Investors looking to earn oversized dividends in today’s market should take a look at midstream energy companies. (Businesses that process, store and transport oil and natural gas.)

Hess Midstream, for instance, currently pays a quarterly distribution of 51.67 cents per share, giving the stock a generous annual yield of 6.6%.

But here’s the most impressive part: While most companies would be proud to offer annual dividend increases, Hess Midstream has been raising its cash payout on a quarterly basis since its IPO in 2017.

In the latest earnings conference call, CFO Jonathan Stein said that the company is targeting 5% annual distribution per share growth through at least 2024.

Management is confident about those distributions, too.

“Highlighting our financial strength, we expect distribution coverage greater than 1.5x and excess adjusted free cash flow of approximately $90 million after fully funding our targeted growing distribution [in 2022],” Stein said.

All things considered, Hess Midstream’s next distribution announcement — which should come in late April — will likely be an increase.

Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

More from Moneywise

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.