Income investors looking for stocks with safe dividends should focus on companies that have long track records of dividend increases.

Investors can generate rising dividends from stocks that have established track records of growing their dividends year after year, even during recessions.

These companies, generally, have shareholder-friendly management teams that are willing to boost the amount of capital returned each year, while also having the ability to raise their payouts through thick and thin.

These 3 dividend stocks have reliable dividends and steady dividend growth.

Target Corporation (TGT)

Target is a general merchandise retailer that operates in the US. The company offers a huge assortment of food products, including dry groceries, dairy, frozen items, and perishables. In addition, Target has a large apparel business, including many of its own private labels. The company has a long list of electronics, toys, animal care, home décor, and much more.

Target posted fourth quarter and full-year earnings on March 4th, 2025, and results were better than expected on both the top and bottom lines, albeit on reduced estimates. Adjusted earnings-per-share came to $2.41, which was 16 cents ahead of estimates.

Revenue was off 3.1% year-over-year to $30.92 billion, but did beat by $90 million. Comparable sales in the fourth quarter rose 1.5% year-over-year due to strong traffic and digital channel performance. Management noted apparel and hardline categories saw particular strength. Digital comparable sales continue to drive the top line, adding 8.7% in Q4. Same-day delivery grew by more than 25% from the year-ago period.

Target’s current yield of 4.3% compares quite favorably to the 1.3% yield of the S&P 500. Target has raised its dividend for an extremely impressive 56 consecutive years, putting it in very rare company on that measure. The payout ratio is now 49% of earnings for this year, indicating a secure payout.

T. Rowe Price Group, Inc. (TROW)

T. Rowe Price Group is an investment manager based in the US. The company provides investment services to individuals, institutions, retirement plans, intermediaries, and institutional investors. T. Rowe invests in public equity and fixed income markets globally, utilizing a variety of investment strategies.

On February 5th, 2025, T. Rowe Price announced fourth quarter and full year results for the period December 31st, 2024. For the quarter, revenue increased 11% to $1.82 billion, though this was $50 million less than expected. Adjusted earnings-per-share of $2.12 compared favorably to $1.72 in the prior year, but missed estimates by $0.08.

For the year, revenue grew 9.8% to $7.1 billion while adjusted earnings-per-share of $9.33 compared to $7.59 in 2023. During the quarter, AUMs of $1.639 billion were up 19.2% year-over-year and 3.1% sequentially. Market appreciation of $205.3 billion was partially offset by $43.2 billion of net client outflows.

We expect T. Rowe Price to earn $9.23 per share in 2025. On February 11th, 2025, T. Rowe Price raised its quarterly dividend 2.4% to $1.27, marking the company’s 39th year of increasing its payout.

T. Rowe shares are yielding 5.5% today. The firm’s payout ratio is expected to be 55% for this year. Still, we don’t believe the payout would be at risk during a recession given the company’s track record in prior recessions.

Badger Meter (BMI)

Badger Meter was founded in 1905 in Milwaukee, WI. It manufactures and markets meters and valves that are used to measure and control the flow of liquids, such as water, oil and various chemicals.

Its products are also used to control the flow of air and other gases. Badger Meter generates ~$827 million in annual revenues.

On January 31st, 2025, Badger Meter announced fourth quarter and full year earnings results for the period ending December 31st, 2025. For the quarter, revenue improved 12.5% to $205.2 million, which topped estimates by $2.45 million.

Earnings-per-share of $1.04 compared favorably to earnings-per-share of $0.84 in the prior year and was $0.04 more than expected. For the year, revenue grew 18% to a new record $826.6 million. Earnings-per-share totaled $4.23, which was a new record and was up from $3.14 in 2023.

The utility water business once again grew 14% for the quarter. As with prior periods, this growth was led by an increase in demand for ORION Cellular endpoint, E-Series Ultrasonic meters, and BEACON Software as a Service.

Given Badger Meter’s 32-year dividend increase streak and reasonable payout ratio, the dividend is very safe today.

Unlike many companies at the height of the last recession, earnings-per-share for Badger Meter improved. Most of the company’s sales are made to municipal water utilities. A key competitive advantage that Badger Meter possess is that consumers require access to water, regardless of economic conditions.

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul