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Dependable utility stocks with over half a century of consistent dividend raises. Blue chip consumer staples. Fast-growing, inflation-beating companies that trade at less than half the S&P 500’s current valuation…

Today’s special report covers all this and more!

In a market where many speculative and unprofitable stocks are hitting new all-time highs, blue chip stalwarts are going unnoticed and unloved. In fact, several of these dependable businesses are at or near their 52-week lows.

As a dividend investor, this is great.

Cheap, proven stocks that supply a steady stream of passive income — what’s not to like?

This month, there are three quality dividend stocks that I’m eyeing and buying. One is a water utility firm, another is one of the most recognizable names in the consumer staples industry, and the third is car retailer that’s been growing its dividend every quarter for 19 consecutive quarters.

Let’s start with the water stock…

1. H2O America ($HTO)

H2O America is a water utility that serves 1.6 million customers across the United States.

The company is a Dividend King that has paid dividends every year for the more than 80 years. And, H2O America has raised its dividend every year for 57 years.

For years, this company traded at a premium. In 2022, for example, H2O America sold for around $82 per share. With interest rates high and treasury bills paying 4%, Wall Street has discarded utility stocks in favor or guaranteed income via T-bills and bonds.

Good news for equity investors!

H2O America currently trades at a price to earnings ratio of 16.06 while paying a 3.52% starting yield. And, the company has a 5-year compound annual dividend growth rate of 5.75%.

From August 4th, 1995 to July 31st, 2025, H2O America’s stock price increased 734%.

And that’s without factoring in dividends or dividend reinvestment.

Water is always in demand. And while there’s no immediate catalyst for rapid capital appreciation, H2O America should be a great buy-and-hold forever stock that continues paying dividends and growing its share price over the long-term.

This, coupled with the stock’s low valuation, makes the company a buy.

2. The Procter & Gamble Company ($PG)

The Procter & Gamble Company has paid dividends for 135 consecutive years. In fact, the firm’s dividend streak actually predates the sport of basketball.

This consumer staples giant owns a portfolio of over 22 different brands that each generate at least $1 billion per year.

And unlike some legacy stocks, Procter & Gamble still has plenty of gas in the tank. The company has raised its dividend every year for 68 years and has a 5-year compound average dividend growth rate of 6.07%. On top of this, Procter & Gamble maintains a relatively safe payout ratio of 59.64%.

Plus, the company’s current starting yield of 2.77% actually gives Procter & Gamble a higher starting yield than the Vanguard High Dividend Yield Index Fund ETF.

At the moment, The Procter & Gamble Company is out of favor due to fears about tariffs and trade agreements. The company’s Chief Financial Officer, Andre Schulten, recently warned that tariffs will affect 25% of Procter & Gamble’s products. And as a result, the firm’s stock has plummeted to its 52-week low.

Maybe the stock struggles in the short-term. Maybe Procter & Gamble only raises the dividend by 3% or 4% next year. But, this is a company that was paying dividends during the Great Depression and World War II.

The Procter & Gamble Company is a consistent source of stable income.

And I’m happy to buy the dip.

3. Penske Automotive Group, Inc. ($PAG)

Perhaps the oddest stock on today’s list, Penske Automotive Group, Inc. isn’t a recognizable blue chip like H2O America or The Procter & Gamble Company.

This is a relatively new company, dating back to 1990.

Penske Automotive Group owns and operates car dealerships.

The company owns dealerships all over the world. And Penske has partnered with many recognizable carmakers, including: BWM, Chevrolet, Dodge, and Honda. Additionally, Penske has even partnered with some high-end brands like Ferrari and Bugatti.

Car dealerships are often regional monopolies due to “Manufacturer Agreements.”

These agreements give certain dealerships exclusive territorial rights to sell specific brands of cars and trucks.

Penske is a market-beating stock with inflation-beating dividend growth.

The company has a 10-year average annual total return of 15.84%. And, Penske has raised its dividend every quarter for the past 19 quarters. This gives the business a 5-year compound annual dividend growth rate of 30.97%.

While most market-beaters are expensive, Penske Automotive Group trades at a price to earnings ratio of just 12.62 and also offers a 3.10% starting dividend yield.

Cars are more volatile than toothpaste or water utility bills. But, the impressive dividend growth, market-beating performance, and low valuation all make Penske Automotive Group an attractive investment.

Conclusion

It’s not every day that you see blue chip Dividend Kings paying 2.75% - 3.50% starting yields. Yet, here we are with The Procter & Gamble Company and H2O America doing just that. I’m happy buying the sell-off and holding these stocks for the long-term.

Additionally, Penske Automotive Group, Inc. is a cheap market-beater with rapid dividend growth and a 3.10% starting yield.

Penske isn’t your typical dividend stock. But it’s a cheap market-beater that hikes its dividend on a quarterly basis. And, the company has been around for 35 years while also operating in a “stealth monopoly” niche.

I view all three stocks as good investments this month.

As always, thank you for reading. And I hope your August is off to a great start!

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.