Dividend stocks are an excellent way to generate passive income. These stocks tend to produce solid returns with less volatility.

According to one study by Hartford Funds, 69% of the S 500 index's returns since 1960 are from reinvested dividends that compounded over time. And companies that have initiated or raised their dividends have outperformed an equal-weighted S 500 index since 1973, returning 10.2% versus 7.7% annually, with less volatility.

Companies that consistently increase dividends tend to have strong businesses with stable growth, good balance-sheet management, and a commitment to returning capital to shareholders. Two companies that have raised dividends for three decades or more are Realty Income (NYSE: O) and Cincinnati Financial (NASDAQ: CINF). Here's how these companies have accomplished this feat and why they can be excellent all-weather dividend stocks for your portfolio.

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Source Fool.com