To The Moon

Dividend strategy is a winner for long-term investors! MSFT, XOM, JPM, AAPL, and JNJ are US stocks’ top dividend payers—returning over $70B combined annually!

Do you prefer Microsoft’s growth + cash cow model, J&J’s 63-year dividend growth streak, or another pick? Are these dividend giants part of your portfolio, or are you hunting for higher-yield alternatives?

Share your dividend investing thoughts below!

On Wall Street, there are countless ways to make money, but when it comes to long-term, stable, and time-tested strategies, buying and holding high-quality dividend stocks ranks among the best. According to the report The Power of Dividends: Past, Present, and Future jointly released by Hartford Funds and Ned Davis Research, dividend-paying stocks delivered an annualized return of 9.2% over the more than half-century period from 1973 to 2024—more than twice that of non-dividend-paying stocks (4.31%) over the same period.

The allure of high-dividend stocks lies not only in enhanced returns but also in the excellent companies behind them—those with strong moats and stable cash flows. While there are plenty of high-yield targets with impressive dividend yields in the market, the following five industry giants are undoubtedly the top "dividend payers" when it comes to total cash returned to shareholders. Together, these companies distribute over $70 billion in dividends annually, and most have decades of consecutive dividend-paying records.

1. $Microsoft(MSFT)$ : Over $27 Billion in Annual Dividends, A Tech Giant’s Dual-Driver Growth

Even though Microsoft’s 0.9% dividend yield is unremarkable among tech stocks, the company’s massive share base and sustained profit growth make its annual dividend payout reach $27.05 billion, firmly topping the list of US stocks by nominal dividend amount.

Microsoft’s strength stems from its unique "dual-engine" model. On one hand, its cloud computing business centered on Azure, boosted by artificial intelligence (AI) solutions, has seen growth approaching 40% at constant currency, demonstrating robust growth momentum. On the other hand, traditional businesses like the Windows operating system and Office productivity suite, while no longer in high-growth phases, remain dominant in the global desktop ecosystem, consistently generating stable and high-margin cash flows. This perfect balance of "growth + cash cow" gives Microsoft ample confidence to be the most generous dividend payer.

2. $Exxon Mobil(XOM)$ : Nearly $17.2 Billion in Annual Dividends, Integrated Operations Weather Cycles

Energy giant Exxon Mobil currently pays a quarterly dividend of $1.03 (annualized $4.12), with expected total dividends of $17.18 billion over the next 12 months. The resilience of the company’s dividend payments is largely attributed to its "integrated" business model.

Unlike pure upstream exploration companies, Exxon Mobil’s operations span the entire crude oil production chain: upstream drilling contributes the highest flexible profits, while midstream pipelines and terminal facilities, along with downstream refining and chemical plants, provide a natural hedge. When oil prices are low, midstream and downstream assets stabilize cash flows; when oil prices are high, upstream profits are fully realized. Recent geopolitical tensions have disrupted shipping through the Strait of Hormuz, driving up international oil prices and undoubtedly further strengthening Exxon Mobil’s dividend capacity.

3. $JPMorgan Chase(JPM)$ : $16.2 Billion in Annual Dividends, Beneficiary of Interest Rate Cycles and Scale Effects

As a flagship of the US banking industry, JPMorgan Chase returns approximately $16.2 billion annually to shareholders through a quarterly dividend of $1.50 (annualized $6.00). Bank stocks are inherently cyclical, but JPMorgan’s advantage lies in the fact that economic expansions are often much longer than recessions, allowing the bank’s loan portfolio to expand steadily most of the time.

More importantly, the Federal Reserve’s aggressive rate-hiking cycle from March 2022 to July 2023 raised the federal funds rate target range by a total of 525 basis points, bringing substantial net interest income to large banks like JPMorgan Chase. With its massive asset scale and diversified business structure, the bank acts like a "money printer" when interest rates are high.

4. $Apple(AAPL)$ : Nearly $15.3 Billion in Annual Dividends, Dividend Prowess Beyond the Largest Share Repurchase in History

Apple not only boasts the world’s largest share repurchase program (having spent a cumulative $841 billion on repurchases since fiscal 2013) but also delivers impressive dividend payouts. A quarterly dividend of $0.26 (annualized $1.04) translates to approximately $15.27 billion in annual cash outflows.

While hardware devices like the iPhone remain Apple’s profit backbone, the integration of AI features such as Apple Intelligence is reigniting upgrade demand. What truly determines the company’s future valuation logic is its strategic shift toward a subscription service model. High-margin service businesses not only smooth the cyclical fluctuations of hardware sales but also further enhance user stickiness, providing a solid cash buffer for continuously improving shareholder returns.

5. $Johnson & Johnson(JNJ)$ : $12.53 Billion in Annual Dividends, A "Dividend Aristocrat" with 63 Consecutive Years of Increases

When it comes to dividend stability, healthcare giant Johnson & Johnson is a role model. Founded in 1886, the company has increased its annual dividend for 63 consecutive years. Currently paying a quarterly dividend of $1.30 (annualized $5.20), its total annual dividend payout is approximately $12.53 billion.

Johnson & Johnson’s exceptional cash flow management stems from its management’s forward-looking layout of high-profit businesses. After spinning off its consumer health business Kenvue in 2023, the company plans to split off its orthopedic business DePuy Synthes in the next few quarters, focusing entirely on high-growth, high-barrier innovative drugs and medical devices. More importantly, the company’s senior management has remained stable for a long time, ensuring strategic consistency—this "long-distance runner" temperament is precisely what dividend investors value most.

These five companies span technology, energy, finance, and healthcare, sharing common traits: irreplicable competitive advantages, stable and abundant operating cash flows, and a governance culture that prioritizes shareholder returns. For investors who believe in dividend strategies, these top "dividend payers" are not only stable sources of income but also ballast stones to navigate market volatility.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.