2 Surefire Dividend Stocks That Could Pay You for Life

In the ever-changing landscape of the stock market, finding reliable income sources can be a daunting task. However, dividend stocks offer a beacon of stability, providing a steady stream of income that can last a lifetime. Today, we'll dive into two dividend stocks that have proven their mettle over decades: Nordson Corp. (NDSN) and Sysco Corp. (SYY). These companies not only have a history of consistent dividend increases but also possess the financial strength to continue rewarding shareholders for years to come.

Nordson Corp. (NDSN): A Dividend King with a 61-Year Streak

Nordson Corp. is a company that has stood the test of time. Founded in 1954, Nordson has been increasing its dividends for an impressive 61 consecutive years, making it a true Dividend King. On August 14th, 2024, Nordson increased its dividend by 15% to $0.78 per share quarterly. This consistent growth in dividends is a testament to Nordson's financial stability and its ability to navigate various economic conditions successfully.

Nordson's business model is diversified, with operations in over 35 countries. The company engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials. This diversification helps Nordson maintain a steady cash flow, which is crucial for sustaining its dividend payouts.

One of the key metrics to consider when evaluating a dividend stock is the payout ratio. Nordson's payout ratio is below 70%, which ensures that the company has enough cash flow to cover its dividend payments and still have funds for growth and other expenses. This sustainable payout ratio is a strong indicator that Nordson can continue to increase its dividends in the future.

Sysco Corp. (SYY): The Largest Wholesale Food Distributor in the U.S.

Sysco Corp. is another dividend stock that has proven its reliability over the years. As the largest wholesale food distributor in the United States, Sysco serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities. This diverse customer base provides Sysco with a stable revenue stream, which is essential for maintaining its dividend payouts.

On January 28th, 2025, Sysco reported a 4.5% increase in sales for the second quarter of fiscal year 2025, reaching $20.2 billion. This strong financial performance allows Sysco to continue paying and increasing its dividends. Sysco's payout ratio is also below 70%, which ensures that the company has enough cash flow to cover its dividend payments and still have funds for growth and other expenses.

Sysco's commitment to dividend growth is evident in its reaffirmed full-year guidance, projecting sales growth of 4%-5% and adjusted EPS growth of 6%-7%. This guidance provides investors with confidence that Sysco will continue to reward shareholders with increasing dividends in the future.

Comparing to Other Dividend Aristocrats and Kings

When comparing Nordson and Sysco to other Dividend Aristocrats or Kings, it becomes clear that these two stocks stand out. For example, companies like Fastenal (FAST) and C.H. Robinson Worldwide (CHRW) have 25 and 26 years of dividend growth, respectively, which is significantly less than Nordson's 61 years. This comparison highlights Nordson's exceptional track record of dividend growth and its status as a Dividend King.



Conclusion

In conclusion, Nordson Corp. (NDSN) and Sysco Corp. (SYY) are two dividend stocks that offer a reliable source of income for long-term investors. Their consistent dividend growth, sustainable payout ratios, and strong financial performance make them standout choices for income-seeking investors. By adding these stocks to your portfolio, you can enjoy a steady stream of income that could last a lifetime.