Providing natural gas and propane to consumers around the globe is an immensely profitable business, and UGI Corporation (UGI) has been using the profits to reward its shareholders since 1885.
UGI not only operates a diversified system of midstream assets and pipelines, but also natural gas utility assets in Pennsylvania. Those provide plenty of stable cash flows for the firm.
However, the kicker for UGI comes from its unregulated propane distribution businesses.
The firm is the general partner of propane master limited partnership AmeriGas (APU). That entitles UGI to some hefty incentive distribution rights, as well as dividends from the 26% of APU units it owns. APU is currently yielding around 7.8% itself. UGI also owns/operates several propane subsidiaries in Europe, including the largest distributor in Austria and Denmark. More recently, UGI has made moves into China to provide liquefied propane gas (LPG).
That all has helped UGI pay dividends for the last 128 consecutive years! And like the rest of the firms on this list, UGI has raised its dividend in each of the past 26 years and offers impressive 75% dividend growth over the past decade.