PepsiCo has increased its quarterly dividend payment almost 10-fold from $0.14 per share to $1.355 over 23 years, for a solid compound annual growth rate of 10.4%. PepsiCo's dividend yield currently stands at 3.6%, which is nearly triple that of the 1.3% offered by the S&P 500 index.

Despite common perceptions, 2024 turned out to be a strong year for dividends, even though the Aristocrats Index underperformed the broader market.

Many dividend stocks lost their luster in 2022 and 2023 as rising interest rates drove jittery investors toward safer CDs, Treasury bills, and other fixed-income investments. However, many of those high-yielding dividend stocks stabilized in 2024 as the Federal Reserve finally implemented three interest rate cuts.

It takes money to make money. However, you don't need a lot to get started. Many top-notch dividend stocks have share prices below $100 right now. That's worth noting, given the powerful returns that dividend stocks have produced over the long term.