The Best DRIP Stocks Now

Updated on July 11th, 2025 by Bob Ciura

DRIP stands for Dividend Reinvestment Plan. When an investor is enrolled in DRIP stocks, it means that incoming dividend payments are used to purchase more shares of the issuing company – automatically.

Many businesses offer DRIPs that require the investors to pay fees. Obviously, paying fees is a negative for investors. As a general rule, investors are better off avoiding DRIP stocks that charge fees.

Fortunately, many companies offer no-fee DRIP stocks. These allow investors to use their hard-earned dividends to build even larger positions in their favorite high-quality, dividend-paying companies – for free.

The Dividend Champions are a group of quality dividend stocks that have raised their dividends for at least 25 consecutive years.

You can download your free copy of the Dividend Champions list, along with relevant financial metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the link below:

 

Think about the powerful combination of DRIPs and Dividend Champions…

You are reinvesting dividends into a company that pays higher dividends every year. This means that every year you get more shares – and each share is paying you more dividend income than the previous year.

This makes a powerful (and cost-effective) compounding machine.

This article takes a look at the top 15 Dividend Champions that are no-fee DRIP stocks, ranked in order of expected total returns from lowest to highest.

The updated list for 2025 includes our top 15 Dividend Champions, ranked by expected returns according to the Sure Analysis Research Database, that offer no-fee DRIPs to shareholders.

You can skip to analysis of any individual Dividend Champion below:

Additionally, please see the video below for more coverage.

#15: California Water Service (CWT)

• 5-year expected annual returns: 7.7%

California Water Service is the 3rd largest publicly-owned water utility in the United States. The company has six subsidiaries that provide water to about two million people, mainly in California, with some additional operations in Washington, New Mexico, and Hawaii.

California Water Service was founded in 1926 and has increased its dividend for more than 50 consecutive years, which makes the company a Dividend King.

California Water Service reported its first quarter earnings results in early May. The company reported that its operating revenues totaled $204 million during the quarter, which was 25% less than the revenues that California Water Service generated during the previous year’s quarter.

This represents a weaker performance compared to what the analyst community had forecasted. The operating revenue decline was caused by one-time revenue effects in the previous year’s quarter due to the adoption of the California GRC decision that made Q1 2024’s revenue artificially large.

California Water Service generated earnings-per-share of $0.22 during the first quarter, which was better than what was expected by the analyst community.

Click here to download our most recent Sure Analysis report on CWT (preview of page 1 of 3 shown below):

#14: A.O. Smith (AOS)

• 5-year expected annual returns: 8.1%

A.O. Smith is a leading manufacturer of residential and commercial water heaters, boilers and water treatment
products. It generates two-thirds of its sales in North America, and most of the rest in China.

A.O. Smith has raised its dividend for 30 years in a row, making the company a Dividend Aristocrat. The company was founded in 1874 and is headquartered in Milwaukee, WI.

A.O. Smith reported its first quarter earnings results on April 29. The company generated revenues of $964 million during the quarter, which represents a decline of 2% compared to the prior year’s quarter.

Revenues were down by 2% in North America, while the international business was stable compared to the previous year’s quarter, despite China sales being down, as growth in other countries offset this.

A.O. Smith generated earnings-per-share of $0.95 during the first quarter, which was down 5% on a year over year basis. This was caused by lower revenues and lower margins, with buybacks not being able to fully offset these headwinds.

Click here to download our most recent Sure Analysis report on AOS (preview of page 1 of 3 shown below):

#13: S&P Global (SPGI)

• 5-year expected annual returns: 8.2%

S&P Global is a worldwide provider of financial services and business information and revenue of over $13 billion.

Through its various segments, it provides credit ratings, benchmarks and indices, analytics, and other data to commodity market participants, capital markets, and automotive markets.

S&P Global has paid dividends continuously since 1937 and has increased its payout for 51 consecutive years.

S&P posted first quarter earnings on April 29th, 2025, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share came to $4.37, which was 16 cents ahead of estimates. Revenue was up 8.3% year-over-year to $3.78 billion, beating estimates by $70 million.

Ratings revenue was up 8% year-over-year, as transactions revenue rose 7% and non-transactions revenue rose 10%. Structured finance and bank loans were key contributors to growth.

Market Intelligence was up 5% year-on-year as data analytics and insights products were up 7%. Commodity Insights revenue was up 9%, supported by strong demand for energy transition and sustainability products. Indices revenue was up 15%, as asset-linked fees rose 18%.

Mobility revenue was up 9%, supported by CARFAX and Automotive Mastermind offerings, partially offset by currency-related headwinds.

Click here to download our most recent Sure Analysis report on SPGI (preview of page 1 of 3 shown below):

#12: Illinois Tool Works (ITW)

• 5-year expected annual returns: 8.5%

Illinois Tool Works is a diversified multi-industrial manufacturer with seven unique operating segments: Automotive, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products and Specialty Products.

Last year the company generated $15.9 billion in revenue.

On April 30th, 2025, Illinois Tool Works reported first quarter 2025 results for the period ending March 31st, 2025. For the quarter, revenue came in at $3.8 billion, shrinking 3.4% year-over-year. Sales declined 3.7% in the Automotive OEM segment, the largest out of the company’s seven segments.

In fact, every single one of ITW’s segments experienced revenue declines year-over-year. Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products and Specialty Products all saw revenue decline -0.7%, -6.3%, -0.9%, -0.8%, -9.2%, and -1.0% respectively.

Net income equaled $700 million or $2.38 per share compared to $819 million or $2.73 per share in Q1 2024. In the first quarter, ITW repurchased $375 million of its shares. Illinois Tool Works reaffirmed its 2025 guidance, still expecting full-year GAAP EPS to be $10.15 to $10.55.

Click here to download our most recent Sure Analysis report on ITW (preview of page 1 of 3 shown below):

#11: Polaris Inc. (PII)

• 5-year expected annual returns: 8.7%

Polaris designs, engineers, and manufactures snowmobiles, all-terrain vehicles (ATVs) and motorcycles. In addition, related accessories and replacement parts are sold with these vehicles through dealers located throughout the U.S.

The company operates under 30+ brands including Polaris, Ranger, RZR, Sportsman, Indian Motorcycle, Slingshot and Transamerican Auto Parts.

The global powersports maker, serving over 100 countries, generated $7.2 billion in sales in 2024.

On April 29th, 2025, Polaris reported first quarter results for the period ending March 31st, 2025.

Source: Investor Presentation

For the quarter, revenue fell 11.5% to $1.54 billion, but this was $10 million above estimates.

Adjusted earnings-per-share of -$0.90 compared unfavorably to $0.23 in the prior year, but this was $0.01 better than expected.

For the quarter, Marine sales decreased 7%, On-Road was lower by 20%, and Off-Road, the largest component of the company, declined 10%. As with previous quarters, decreases in all three businesses were mostly due to lower volumes.

Click here to download our most recent Sure Analysis report on PII (preview of page 1 of 3 shown below):

#10: Nucor Corp. (NUE)

• 5-year expected annual returns: 9.4%

Nucor is the largest publicly traded US-based steel corporation based on its market capitalization. The steel industry is notoriously cyclical, which makes Nucor’s streak of 52 consecutive years of dividend increases even more remarkable.

On April 28, 2025, Nucor Corporation reported its financial results for the first quarter of 2025. The company posted net earnings attributable to stockholders of $156 million, or $0.67 per diluted share, a significant decrease from $845 million, or $3.46 per share, in the same quarter of the previous year.

Adjusted net earnings, excluding one-time charges related to facility closures and repurposing, were $179 million, or $0.77 per share, surpassing analyst expectations of $0.64 per share.

Net sales for the quarter were $7.83 billion, down 4% year-over-year but up 11% sequentially, driven by a 10% increase in total shipments to 6.83 million tons, despite a 12% decline in average sales price per ton compared to the first quarter of 2024.

Click here to download our most recent Sure Analysis report on NUE (preview of page 1 of 3 shown below):

#9: Universal Health Realty Trust (UHT)

• 5-year expected annual returns: 9.5%

Universal Health Realty Income Trust operates as a real estate investment trust (REIT), specializing in the healthcare sector. The trust owns healthcare and human service-related facilities.

Its property portfolio includes acute care hospitals, medical office buildings, rehabilitation hospitals, behavioral healthcare facilities, sub-acute care facilities and childcare centers.

Universal Health’s portfolio consists of 76 properties located in 21 states.

On April 28, 2025, Universal Health Realty Income Trust (UHT) reported its financial results for the first quarter ended March 31, 2025. The company achieved net income of $4.8 million, or $0.34 per diluted share, compared to $5.3 million, or $0.38 per diluted share, in the same period of the previous year.

This decrease was primarily attributed to a $401,000 reduction in property-level income and a $122,000 increase in interest expenses, reflecting higher average borrowings and rising interest rates.

Funds from operations (FFO) totaled $11.9 million, or $0.86 per diluted share, down from $12.4 million, or $0.90 per share, in the first quarter of 2024. Total revenues declined by 2.4%.

Click here to download our most recent Sure Analysis report on UHT (preview of page 1 of 3 shown below):

#8: Realty Income (O)

• 5-year expected annual returns: 9.5%

Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.

Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties.

The REIT has generated strong shareholder returns for many years.

Source: Investor Presentation

Realty Income’s diversified portfolio comprises 15,627 commercial properties across eight countries, with 79.9% in
retail, 14.4% in industrial, 3.2% in gaming, and 2.5% in other sectors. Geographically, 84.6% of annualized base rent
originates from the United States, 12.6% from the United Kingdom, and 2.8% from continental Europe.

On May 5, 2025, Realty Income Corporation reported its financial results for the first quarter. The company achieved total revenue of $1.38 billion, surpassing analyst expectations of $1.27 billion.

Net income available to common stockholders was $249.8 million, or $0.28 per diluted share, compared to $129.7 million, or $0.16 per share, in the same period of the previous year.

Funds from Operations (FFO) per share increased to $1.05 from $0.94, while adjusted Funds from Operations (AFFO) per share rose to $1.06 from $1.03, reflecting a 2.9% year-over-year growth.

Click here to download our most recent Sure Analysis report on Realty Income (preview of page 1 of 3 shown below):

#7: Northwest Natural Holding (NWN)

• 5-year expected annual returns: 10.0%

NW Natural was founded in 1859 and has grown from just a handful of customers to serving more than 760,000 today. The utility’s mission is to deliver natural gas to its customers in the Pacific Northwest.

The company’s locations served are shown in the image below.

Source: Investor Presentation

On May 6, 2025, Northwest Natural Holding Company reported its financial results for the first quarter ended March 31, 2025. The company achieved net income of $87.9 million, or $2.18 per diluted share, compared to $63.8 million, or $1.69 per share, in the same period of the previous year.

Adjusted net income, which excludes $3.9 million in after-tax transaction costs related to the SiEnergy acquisition, was $91.8 million, or $2.28 per share, surpassing analyst expectations of $2.01 per share. Total operating revenues increased by 14% year-over-year to $494.3 million, driven by strong performance across all business segments.

The NWN Gas Utility segment reported net income of $87.2 million, up from $65.7 million, primarily due to new rates in Oregon and increased margins. SiEnergy, acquired in January 2025, contributed $5.5 million in net income and added approximately 73,000 meters, reflecting robust customer growth in Texas.

The NWN Water Utility segment posted net income of $1.7 million, reversing a loss of $0.7 million in the prior year, aided by new rates in Arizona and the Puttman acquisition.

NW Natural Holdings reaffirmed its adjusted 2025 EPS guidance of $2.75 to $2.95.

Click here to download our most recent Sure Analysis report on NWN (preview of page 1 of 3 shown below):

#6: Arrow Financial Corporation (AROW)

• 5-year expected annual returns: 10.6%

Arrow Financial Corporation is a multi-bank holding company based in Glen Falls, New York. The company operates through two main subsidiary banks, the Glens Falls National Bank and Trust Company, and the Saratoga National Bank and Trust Company.

Arrow Financial Corporation is also the parent company of North Country Investment Advisers and Update Agency, an insurance agency. The company is a small cap, and it produces about $163 million in annual revenue. Arrow Financial has increased its dividend for 28 consecutive years.

Arrow posted first quarter earnings on May 1st, 2025, and results were decent. Net income came to $6.3 million, which was equivalent to 38 cents per share. Net interest income was a record for the company at $31.4 million. In addition, net interest margin was 3.07%, up sharply from 2.83% in the prior quarter.

Arrow ended the quarter with deposits rising to $4 billion, so loans-to-deposits came to 86.1%. That’s slightly elevated relative to most of Arrow’s peers, which introduces a bit more risk, as well as taking away some potential growth.

Cost of interest-bearing deposits fell by 23 basis points to 2.41%, which made up the entirety of the gain in the company’s net interest margin. Tangible book value came to $22.72 per share. Arrow repurchased 128k shares during the quarter for $3.4 million.

Click here to download our most recent Sure Analysis report on AROW (preview of page 1 of 3 shown below):

#5: Tompkins Financial (TMP)

• 5-year expected annual returns: 10.7%

Tompkins Financial is a regional financial services holding company headquartered in Ithaca, NY that can trace its roots back more than 180 years. It has total assets of about $8 billion, which produce about $300 million in annual revenue.

The company offers a wide range of services, including checking and deposit accounts, time deposits, loans, credit cards, insurance services, and wealth management to its customers in New York and Pennsylvania.

Tompkins posted first quarter earnings on April 25th, 2025, and results showed good progress for the small bank. Revenue was up more than 12% year-over-year to $81.7 million, and earnings-per-share came to $1.37.

Net interest margin came to 2.98%, up from 2.93% in the prior quarter, and up sharply from 2.73% in the year-ago period. Average cost of funds was 1.84%, down four basis points from Q4, and down two basis points from the year-ago period from funding mix and lower market interest rates.

Click here to download our most recent Sure Analysis report on TMP (preview of page 1 of 3 shown below):

#4: Johnson & Johnson (JNJ)

• 5-year expected annual returns: 11.6%

Johnson & Johnson is a diversified health care company and a leader in the area of innovative medicines and medical devices Johnson & Johnson was founded in 1886 and employs nearly 132,000 people around the world.

On April 15th, 2025, Johnson & Johnson announced that it was increasing its quarterly dividend 4.8% to $1.30, extending the company’s dividend growth streak to 63 consecutive years.

Source: Investor Presentation

That same day, Johnson & Johnson reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue grew 2.3% to $21.9 billion, which beat estimates by $330 million.

Adjusted earnings-per-share of $2.77 compared to $2.71 in the prior year and was $0.19 more than expected. Results included adjustments related to the costs of acquisitions.

Click here to download our most recent Sure Analysis report on JNJ (preview of page 1 of 3 shown below):

#3: Hormel Foods (HRL)

• 5-year expected annual returns: 12.2%

Hormel Foods is a juggernaut in the food products industry with nearly $10 billion in annual revenue. It has a large portfolio of category-leading brands. Just a few of its top brands include include Skippy, SPAM, Applegate, Justin’s, and more than 30 others.

It has also pursued acquisitions to drive growth. For example, in 2021, Hormel acquired the Planters snack nuts business from Kraft-Heinz (KHC) for $3.35 billion, which has boosted Hormel’s growth.

Hormel posted second quarter earnings on May 29th, 2025, and results were largely in line with expectations. Adjusted earnings-per-share came to 35 cents, which was a penny ahead of estimates.

Revenue was up fractionally to $2.9 billion, meeting expectations. The company saw a 7% decline in volume and flat sales in both retail and foodservice. Pricing increases helped to offset that.

Click here to download our most recent Sure Analysis report on HRL (preview of page 1 of 3 shown below):

#2: Nordson Corporation (NDSN)

• 5-year expected annual returns: 12.8%

Nordson was founded in 1954. Today the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials, with applications ranging from diapers and straws to cell phones and aerospace.

The company generated $2.7 billion in sales last fiscal year.

On May 28th, 2025, Nordson reported second quarter results for the period ending April 30, 2025. For the quarter, the company reported sales of $683 million, 5% higher compared to $651 million in Q2 2024, driven by an 8% positive acquisition impact, partly offset by 2% organic sales decrease.

The Medical and Fluid Solutions, and Advanced Technology Solutions segments saw sales increase by 20% and 18%, respectively, while Industrial Precision Solutions sales fell 8%. The company generated adjusted earnings per share of $2.42, a 3% increase compared to the same prior year period.

The company’s backlog rose 5% sequentially.

Click here to download our most recent Sure Analysis report on NDSN (preview of page 1 of 3 shown below):

#1: New Jersey Resources (NJR)

• 5-year expected annual returns: 13.5%

New Jersey Resources provides natural gas and clean energy services, transportation, distribution, asset management and home services through its five main subsidiaries. The company owns both regulated and non-regulated operations.

NJR’s principal subsidiary, New Jersey Natural Gas (NJNG), owns and operates natural gas transportation and distribution infrastructure serving over half a million customers.

NJR Clean Energy Ventures (CEV) invests in and operates solar projects, to provide customers with low-carbon solutions.

NRJ Energy Services manages a portfolio of natural gas transportation and storage assets, as well as provides physical natural gas services to customers in North America.

Source: Investor Presentation

New Jersey Resources was founded in 1952 and has paid a quarterly dividend since. The company has increased its annual dividend for 28 consecutive years.

New Jersey Resources reported second quarter 2025 results on May 5th, 2025, for the period ending March 31st, 2025. Second quarter net income of $204.3 million compared favorably to the prior year quarter’s $120.8 million.

Consolidated net financial earnings (NFE) amounted to $178.3 million, compared to net financial earnings (NFE) of $138.6 million in Q2 2025 and NFE per share of $1.78 compared to $1.41 per share one year ago.

Management raised its guidance for fiscal 2025, now seeing NFEPS in the range of $3.15 to $3.30 (from $3.05 to $3.20 at previous guidance).

Click here to download our most recent Sure Analysis report on NJR (preview of page 1 of 3 shown below):

Final Thoughts and Additional Resources

Enrolling in DRIP stocks can be a great way to compound your portfolio income over time. Additional resources are listed below for investors interested in further research for DRIP stocks.

For dividend growth investors interested in DRIP stocks, the 15 companies mentioned in this article are a great place to start. Each business is very shareholder friendly, as evidenced by their long dividend histories and their willingness to offer investors no-fee DRIP stocks.

At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year.

If that strategy appeals to you, it may be useful to browse through the following databases of dividend growth stocks:

• The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 55 stocks with 50+ years of consecutive dividend increases.
• The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
• The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.