The Best DRIP Stocks Now

Updated on October 10th, 2025 by Bob Ciura

DRIP, or Dividend Reinvestment Plan, allows investors to automatically reinvest their dividend payments into additional shares of the issuing company. This strategy can significantly enhance an investor’s portfolio over time.

While many companies offer DRIPs, some charge fees that can diminish the benefits for investors. Generally, it’s advisable to steer clear of DRIP stocks that impose such fees. Fortunately, numerous companies provide no-fee DRIP stocks, enabling investors to reinvest their dividends without incurring extra costs. This approach allows investors to build larger positions in high-quality, dividend-paying companies—for free.

The Dividend Champions are a select group of stocks that have consistently raised their dividends for at least 25 consecutive years. You can download a free copy of the Dividend Champions list, which includes essential financial metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the link below:

Imagine the powerful synergy of DRIPs combined with Dividend Champions. By reinvesting dividends into companies that consistently increase their payouts, you accumulate more shares each year, and each share generates higher dividend income than before. This creates a robust and cost-effective compounding mechanism.

This article highlights the top 15 Dividend Champions that offer no-fee DRIP stocks, ranked by expected total returns from lowest to highest. The updated list for 2025 features these top 15 Dividend Champions, ranked according to expected returns as per the Sure Analysis Research Database.

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

Additionally, check out the video below for more insights.

Click here to download our most recent Sure Analysis report on JNJ

#14: California Water Service (CWT)

• 5-year expected annual returns: 8.1%

California Water Service is the third-largest publicly-owned water utility in the U.S., serving about two million people. The company reported a 9% increase in operating revenues for the second quarter, totaling $265 million.

CWT has increased its dividend for 58 consecutive years, showcasing its commitment to shareholder returns.

Click here to download our most recent Sure Analysis report on CWT

#13: Realty Income (O)

• 5-year expected annual returns: 8.5%

Realty Income is a retail real estate-focused REIT known for its monthly dividend payments. The company reported total revenue of $1.26 billion for the second quarter, reflecting steady growth driven by acquisitions and high occupancy rates.

Click here to download our most recent Sure Analysis report on Realty Income

#12: A.O. Smith (AOS)

• 5-year expected annual returns: 8.5%

A.O. Smith, a leading manufacturer of water heaters and treatment products, has raised its dividend for 30 consecutive years. The company reported revenues of $1.01 billion for the second quarter, with adjusted earnings-per-share of $1.07.

Click here to download our most recent Sure Analysis report on AOS

#11: Universal Corporation (UVV)

• 5-year expected annual returns: 8.5%

Universal Corporation is the largest leaf tobacco exporter and has a 54-year history of dividend increases. The company reported revenues of $594 million in its first quarter, although this was lower than previous periods.

Click here to download our most recent Sure Analysis report on UVV

#10: Northwest Natural Holding (NWN)

• 5-year expected annual returns: 9.0%

Founded in 1859, NW Natural serves over 760,000 customers in the Pacific Northwest. The company reported net income of $7.4 million for the second quarter, reflecting steady growth despite seasonal challenges.

Click here to download our most recent Sure Analysis report on NWN

#9: Illinois Tool Works (ITW)

• 5-year expected annual returns: 9.8%

Illinois Tool Works is a diversified manufacturer with seven operating segments. The company reported revenue of $4.1 billion for the second quarter, with net income of $755 million.

Click here to download our most recent Sure Analysis report on ITW

#8: Nucor Corp. (NUE)

• 5-year expected annual returns: 10.0%

Nucor is the largest publicly traded steel corporation in the U.S., boasting a remarkable 52-year streak of dividend increases. The company reported net earnings of $2.60 per share for the second quarter, with net sales of $8.46 billion.

Click here to download our most recent Sure Analysis report on NUE

#7: Nordson Corporation (NDSN)

• 5-year expected annual returns: 12.1%

Nordson operates in over 35 countries, focusing on dispensing technologies. The company reported sales of $742 million for the third quarter, a 12% increase compared to the previous year.

Click here to download our most recent Sure Analysis report on NDSN

#6: Arrow Financial Corporation (AROW)

• 5-year expected annual returns: 12.1%

Arrow Financial Corporation is a multi-bank holding company based in New York. The company reported earnings of 65 cents per share, with revenue up 15% year-over-year to $40.14 million.

Click here to download our most recent Sure Analysis report on AROW

#5: Universal Health Realty Trust (UHT)

• 5-year expected annual returns: 12.3%

Universal Health Realty Trust specializes in healthcare-related facilities. The company reported net income of $0.32 per diluted share for the second quarter, down from $0.38 in 2024.

Click here to download our most recent Sure Analysis report on UHT

#4: Hormel Foods (HRL)

• 5-year expected annual returns: 12.6%

Founded in 1891, Hormel Foods has evolved into a major player in the food industry, generating about $12 billion in annual revenue. The company reported third-quarter earnings of 35 cents per share, slightly below estimates.

Click here to download our most recent Sure Analysis report on HRL

#3: S&P Global (SPGI)

• 5-year expected annual returns: 12.9%

S&P Global provides financial services and business information, generating over $13 billion in revenue. The company reported second-quarter earnings of $4.43 per share, exceeding expectations.

Click here to download our most recent Sure Analysis report on SPGI

#2: New Jersey Resources (NJR)

• 5-year expected annual returns: 13.6%

New Jersey Resources provides natural gas and clean energy services. The company reported consolidated net financial earnings of $6.2 million for the third quarter, a significant improvement from the previous year.

Click here to download our most recent Sure Analysis report on NJR

#1: Tompkins Financial (TMP)

• 5-year expected annual returns: 14.9%

Tompkins Financial is a regional financial services holding company with a history spanning over 180 years. The company reported earnings of $1.50 per share for the second quarter, with total assets around $8 billion.

Click here to download our most recent Sure Analysis report on TMP

Enrolling in DRIP stocks can be an effective strategy for compounding your portfolio income over time. The 15 companies mentioned in this article are excellent starting points for dividend growth investors. Each of these businesses demonstrates a strong commitment to shareholders through their long dividend histories and no-fee DRIP offerings.

For those interested in further research, consider exploring the following databases of dividend growth stocks:

• The Dividend Kings List: an exclusive group of stocks with 50+ years of consecutive dividend increases.
• High Dividend Stocks List: stocks appealing to investors seeking yields of 5% or more.
• Monthly Dividend Stocks List: stocks that pay dividends every month, providing 12 payments per year.

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