Top Dividend Stocks That Have Outperformed The Market and Are Worth Buying Now

Top Dividend Stocks Outperforming the Market

These companies have manageable dividend expenses and are generating near-record earnings. Passive income investors dream of finding companies that can pay reliable and growing dividends while also beating the market. A company must grow its earnings to distribute more money to shareholders over time. To grow earnings, the business has to be in good financial shape and navigate economic cycles to raise its dividend even if earnings growth languishes.

WM (NYSE: WM)

• Impressive Performance: WM has produced a total return of 57.3% over the last three years, surpassing the S&P 500 and Nasdaq Composite.
• Growing Revenue: WM's revenue is up over 25% in the last three years, reflecting accelerated growth.
• Integrated Business Model: WM benefits from an integrated waste management value chain, ensuring consistent cash flow and growth potential.
• Strong Dividend History: WM has doubled its dividend over the last decade, supported by high free cash flow generation.

ExxonMobil (NYSE: XOM)

• Steady Growth: ExxonMobil's stock has outperformed the major indexes significantly over the last three years.
• Future Expansion: The company projects earnings growth through 2027, supported by strategic asset expansions.
• Consistent Dividend Policy: With 41 consecutive years of dividend hikes, ExxonMobil remains focused on rewarding shareholders.

Owens Corning (NYSE: OC)

• Market Outperformance: Owens Corning's stock has surged 59% compared to the S&P 500 and Nasdaq-100.
• Strategic Acquisitions: The company's acquisition of Masonite International strengthens its position in the housing market, setting the stage for growth.
• Value Stock for Investors: Owens Corning offers value for investors eyeing opportunities in the recovering housing market.

These companies demonstrate the potential for continued market outperformance in the future.