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If you’re considering stocks that pay dividend income, one thing to keep in mind is company profitability. A company’s dividend is only as reliable as its profitability, so be sure to check that a dividend stock also has strong profitability.

We ran a screen on “dividend champions,” i.e. stocks that have consistently raised their dividend over the last 25 years. We screened these stocks for those with impressive profitability, beating their industry peers on gross, operating, and pretax margins.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks pay reliable dividends? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. McDonald's Corp. (NYSE:MCD): Operates as a foodservice retailer worldwide. Market cap of $99.17B. Dividend yield at 2.89%, payout ratio at 47.27%. TTM gross margin at 44.81% vs. industry gross margin at 37.33%. TTM operating margin at 30.49% vs. industry operating margin at 19.54%. TTM pretax margin at 29.40% vs. industry pretax margin at 17.96%. The stock has gained 28.66% over the last year.

2. The Coca-Cola Company (NYSE:KO): Distributes, and markets nonalcoholic beverages worldwide. Market cap of $151.56B. Dividend yield at 2.82%, payout ratio at 33.32%. TTM gross margin at 65.50% vs. industry gross margin at 59.32%. TTM operating margin at 23.33% vs. industry operating margin at 23.07%. TTM pretax margin at 33.62% vs. industry pretax margin at 24.43%. The stock has gained 5.9% over the last year.

3. 3M Co. (NYSE:MMM): Operates as a diversified technology company worldwide. Market cap of $56.39B. Dividend yield at 2.73%, payout ratio at 36.18%. TTM gross margin at 51.28% vs. industry gross margin at 47.72%. TTM operating margin at 20.92% vs. industry operating margin at 20.91%. TTM pretax margin at 20.40% vs. industry pretax margin at 12.83%. The stock has lost 1.85% over the last year.

4. Colgate-Palmolive Co. (NYSE:CL): Manufactures and markets consumer products worldwide. Market cap of $43.83B. Dividend yield at 2.56%, payout ratio at 44.15%. TTM gross margin at 60.39% vs. industry gross margin at 52.28%. TTM operating margin at 23.52% vs. industry operating margin at 18.65%. TTM pretax margin at 22.79% vs. industry pretax margin at 17.54%. The stock has gained 18.96% over the last year.

5. McCormick & Co. Inc. (NYSE:MKC): Engages in the manufacture, marketing, and distribution of flavor products and other specialty food products to the food industry worldwide. Market cap of $6.51B. Dividend yield at 2.53%, payout ratio at 39.63%. TTM gross margin at 44.52% vs. industry gross margin at 33.08%. TTM operating margin at 15.05% vs. industry operating margin at 12.08%. TTM pretax margin at 14.42% vs. industry pretax margin at 9.55%. The stock has gained 7.93% over the last year.

6. Wal-Mart Stores Inc. (NYSE:WMT): Operates retail stores in various formats worldwide. Market cap of $199.84B. Dividend yield at 2.52%, payout ratio at 31.13%. TTM gross margin at 26.93% vs. industry gross margin at 24.33%. TTM operating margin at 5.96% vs. industry operating margin at 5.50%. TTM pretax margin at 5.45% vs. industry pretax margin at 5.14%. The stock has gained 9.62% over the last year.

7. Commerce Bancshares, Inc. (NASDAQ:CBSH): Operates as the bank holding company for Commerce Bank, N. Market cap of $3.24B. Dividend yield at 2.41%, payout ratio at 30.99%. TTM gross margin at 89.44% vs. industry gross margin at 71.39%. TTM operating margin at 48.39% vs. industry operating margin at 39.66%. TTM pretax margin at 33.50% vs. industry pretax margin at 22.54%. The stock has lost 4.51% over the last year.

8. The McGraw-Hill Companies, Inc. (MHP): Provides various information services for financial, educational, and business information markets worldwide. Market cap of $12.29B. Dividend yield at 2.39%, payout ratio at 34.87%. TTM gross margin at 61.84% vs. industry gross margin at 42.08%. TTM operating margin at 23.45% vs. industry operating margin at 16.96%. TTM pretax margin at 22.02% vs. industry pretax margin at 12.49%. The stock has gained 19.11% over the last year.

9. The Chubb Corporation (NYSE:CB): Provides property and casualty insurance to businesses and individuals. Market cap of $18.76B. Dividend yield at 2.31%, payout ratio at 24.05%. TTM gross margin at 20.15% vs. industry gross margin at 14.17%. TTM operating margin at 18.01% vs. industry operating margin at 11.33%. TTM pretax margin at 18.01% vs. industry pretax margin at 10.06%. The stock has gained 17.18% over the last year.

10. Dover Corp. (NYSE:DOV): Manufactures and sells industrial products and components, and consumables. Market cap of $10.33B. Dividend yield at 2.26%, payout ratio at 25.25%. TTM gross margin at 41.88% vs. industry gross margin at 32.28%. TTM operating margin at 15.14% vs. industry operating margin at 12.95%. TTM pretax margin at 13.62% vs. industry pretax margin at 11.07%. Might be undervalued at current levels, with a PEG ratio at 0.92, and P/FCF ratio at 14.85. The stock has lost 2.04% over the last year.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 10 Dividend Champions With Impressive Profitability