Dividend stocks can offer multiple benefits. Leading dividend stocks can prove to be an outstanding source of income. Moreover, the benefits of dividend stocks to companies may be numerous, such as an increase in investor loyalty, a boost in the stock price, and a significant usage of cash. And for investors, dividend stocks help reduce the risk and profits without selling. Let us provide you with the top five dividend-paying companies list.

Lockheed Martin Corporation (LMT)
Lockheed Martin Corporation managed to sail through the challenging market times of 2022 better than anyone else and is counted as number one on our list. LMT is categorized among the leading and renowned industrial stocks and is the most significant defense contractor globally. It manufactures and builds helicopters, missiles, fighter planes, missile defense systems, space vehicles, and satellites. LMT is the result of the merger of Lockheed Corporation with Martin Marietta. This merger happened in March 1995. Its 2.7% dividend yield makes it a highly attractive option for dividend stocks and tells us about the company’s premium quality. It has showcased growth in earnings at an average rate of 12.3% over the past five years. Also, the average annualized dividend growth has accounted for 9% in the last five years. If LMT keeps on maintaining its market share, there is every possibility of high growth.

Union Pacific Corporation (UNP)
Union Pacific Corporation ranks number two among the top five dividend-paying companies. It is the leading and acknowledged rail network operator in the country. It is a blue-chip enterprise with interests and vision in Mexico’s top railroad enterprise. UNP also ships and delivers goods between the two countries. Union Pacific Corporation offers a dividend yield of 2.5%. And it has a forward P/E ratio of 18.15 at recent prices, which makes it an attractive and appealing option. It has presented an increase in earnings at an average rate of 13.8% in the last five years and average annualized dividend growth of 16.5% over the past five years. UPC is an elite fund that considers railroads’ pricing power, making the company’s dividend highly impressive.

Packaging Corp of America (PKG)
The Packaging Corp of America (PKG) is number three among the top five dividend-paying companies listed. Packaging Corp is the leading and the biggest packaging maker in the country. This industry primarily caters to the containerboard and corrugated materials segment. PKG offers an excellent dividend yield of 3.6% and has had an incredible dividend growth of 14.7% over the past five years. It has also shown an average annualized EPS growth of 13.5% in the last five years. As a result, PKG’s dividend yield is more favorable today than in the spring.

JPMorgan Chase & Co. (JPM)
A leading and significant financial institution and enterprise in the country, JPMorgan Chase & Co. (JPM) is counted as number four in our list of dividend-paying companies. JPM, since its inception, has been working with the principles of providing exceptional client service, responsibility, integrity, and employee growth. Its operations include commercial and retail banking, investment banking, and wealth management. JPM offers an outstanding dividend yield of 3.03% and has sustained attractive dividend growth of 14.9% over the last five years. It has also shown an average annualized EPS growth of 14.8% over the previous five years. It is to be noted that a 35% pullback in the price is responsible for the high dividend yield of the JPM stock.

First American Corp. (FAF)
Last but not least in our list of dividend-paying companies is FAF. It is the leading insurance provider in the real estate and mortgage segment and is one of the top financial services companies in the country. Its core business lines are very vast. It offers direct services as well as through agents. In 2017, FAF’s total revenue was $5.8 billion. The enterprise provides an impressive dividend yield of 3.7% and has shown considerable average growth over the past five years. It has demonstrated average annualized dividend growth of 8.4% over the last five years. The average annualized EPS growth over the previous five years is 24.6%. This is the best earnings growth rate among all the stocks on this list.

We have detailed and listed here the top five dividend-paying companies. It is worth noting that dividends are great options, but not only a single channel to be considered when buying a stock. This post should not be considered a financial advisory and expert advice, and it intends to provide only useful information to readers. When making any financial decision, it is suggested to connect with experts and research and explore the individual’s financial goals and objectives. Risk tolerance should also be taken into consideration.