Social Security COLA averaged 2% annually with high volatility ranging from 0% to 8.7% between 2010 and 2023.
Five dividend aristocrats delivered 4.5% to 7.2% compound annual dividend growth over 10 years.
Procter & Gamble increased dividends for 68 consecutive years with a 60% payout ratio supporting future growth.
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The Social Security Administration announced in October that beneficiaries will receive a 2.8% cost-of-living adjustment (COLA) in 2026, following a 2.5% increase in 2025. While these adjustments help protect purchasing power for 71 million Americans, dividend growth stocks have historically delivered substantially higher annual increases. Five blue-chip companies with multi-decade dividend growth streaks have consistently outpaced Social Security’s typical 2-3% annual adjustments.
Recent COLA history shows significant volatility: 8.7% in 2023 during peak inflation, 3.2% in 2024, and now 2.5% for 2025 and 2.8% for 2026. Over the long term, COLAs have averaged around 2% annually, with three years (2010, 2011, and 2016) seeing no increase. The following dividend aristocrats have built track records of beating these adjustments through consistent, compounding dividend growth.
Caterpillar (NYSE:CAT) has delivered a 10-year compound annual dividend growth rate of 7.2%, more than tripling typical COLA increases. The industrial equipment manufacturer raised its quarterly dividend 7.1% to $1.51 in December 2025, marking its 32nd consecutive year of increases.
Caterpillar’s annual dividend has surged from $1.84 in 2012 to a projected $6.04 in 2026, a 228% increase over 14 years. The company generated $3.7B in operating cash flow in Q3 2025 and returned $1.1B to shareholders. Recent quarterly revenue growth of 10% demonstrates continued momentum despite cyclical industry headwinds.
With a profit margin of 14.3% and return on equity of 46.3%, Caterpillar maintains a conservative payout ratio of approximately 30%, leaving substantial room for future increases. The current dividend yield of 0.93% may appear modest, but the growth rate consistently outperforms inflation adjustments by 4-5 percentage points annually.
Coca-Cola (NYSE:KO) has raised its dividend for 62 consecutive years, delivering a 10-year compound annual growth rate of 4.5%. The beverage giant increased its quarterly dividend 5.2% to $0.51 in 2025.
From 1999 to 2025, Coca-Cola’s quarterly dividend tripled from $0.16 to $0.51, a 219% increase representing steady compounding that has consistently outpaced Social Security adjustments. The company maintained and increased its dividend even through the 2008 financial crisis, raising it from $0.34 in 2007 to $0.38 in 2008.
Coca-Cola’s current dividend yield of 2.92% provides immediate income while the growth rate delivers inflation protection. The company paid $2.108B in dividends during Q3 2025, supported by 30% EPS growth and strong market share gains. With a P/E ratio of 23x and defensive business model, Coca-Cola offers reliable dividend growth for conservative investors seeking COLA-beating income.
Johnson & Johnson (NYSE:JNJ) has increased its dividend for 62 consecutive years, matching Coca-Cola’s streak. The healthcare giant has delivered a 10-year compound annual dividend growth rate of approximately 6.5%, consistently doubling or tripling typical COLA increases.
From 1999 to 2025, Johnson & Johnson’s quarterly dividend surged from $0.25 to $1.30, a 420% increase. The company raised its dividend 4.8% in 2025, increasing from $1.24 to $1.30 per quarter. Over the past decade, JNJ’s annual dividend has increased from $3.00 in 2015 to $5.20 in 2025, a 73% gain.
The company paid $3.132B in dividends during Q3 2025 with 91% EPS growth year-over-year. Johnson & Johnson’s profit margin of 27.3% and return on equity of 33.6% demonstrate exceptional operational efficiency. With a payout ratio of approximately 49%, the company maintains ample capacity for future increases while offering a current yield of 2.42%.
PepsiCo (NASDAQ:PEP) has raised its dividend for 52 consecutive years, delivering a 10-year compound annual growth rate of 7.1%. The food and beverage conglomerate increased its quarterly dividend to $1.4225 in 2025, maintaining its track record of beating Social Security adjustments by 4-5 percentage points annually.
PepsiCo’s annual dividend has grown from $2.15 in 2012 to $5.55 in 2025, a 158% increase demonstrating steady, reliable growth through multiple economic cycles. The company paid $1.949B in dividends during Q3 2025, supported by $4.5B in operating cash flow and reaffirmed 2025 guidance.
With a current dividend yield of 3.73%, PepsiCo offers the highest immediate income among these five dividend growers while maintaining strong growth momentum. Recent dividend increases include 7.0% in 2022, 10.0% in 2023, and 7.8% in 2024, consistently outpacing inflation. The company’s five-year compound annual growth rate of 7.5% has delivered approximately three times the typical COLA adjustment.
Procter & Gamble (NYSE:PG) claims the top spot with an unmatched 68-year consecutive dividend increase history, the longest streak among these five companies. The consumer products giant has delivered consistent annual dividend growth averaging 5-7%, reliably outpacing Social Security adjustments through nearly seven decades of economic cycles.
Procter & Gamble currently pays a quarterly dividend of $1.0568, distributing $2.549B to shareholders in Q1 2026 alone. The company’s dividend yield of 2.93% combines with sustainable growth supported by a 60% payout ratio, leaving substantial room for future increases. Strong fundamentals include a profit margin of 19.7%, return on equity of 31.9%, and 21% EPS growth.
With 70.2% institutional ownership and analyst price targets suggesting 18% upside potential, Procter & Gamble offers both dividend reliability and capital appreciation potential. The company’s defensive business model in household and personal care products has proven recession-resistant, enabling uninterrupted dividend growth since 1957. For investors seeking dependable income growth that consistently outpaces Social Security adjustments, Procter & Gamble’s nearly seven-decade track record stands unmatched.
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