The article uses TipRanks’ Dividend Aristocrat tool to identify three dividend aristocrat stocks that have a Buy rating on Wall Street and hold at least 15% upside. The stocks are:
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Trade IBM with leverageDividend aristocrats are S&P 500 companies that have raised their shareholder payouts every year for at least 25 consecutive years. This long record of increases makes them popular targets for investors seeking steady income.
What Makes These Dividend Aristocrats Stand Out?
According to Wall Street analysts, the three stocks listed below are worth buying. Each stock currently has a dividend payout ratio of at least 58%, meaning that each company recently distributed at least half of its net earnings to shareholders as dividends. Furthermore, each company currently has a Buy rating based on consensus from top analysts or broader Wall Street agreement, with significant upside potential.
Be sure to click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio. Here are today’s top dividend aristocrat stock picks from TipRanks.
- International Business Machines (IBM) — IBM is a global tech giant focused on hybrid cloud and artificial intelligence. It offers services such as software for business automation, data and analytics, and on-premises and cloud-based server and storage solutions. The New York-based company currently has a dividend payout ratio of 58.08%. IBM paid $1.68 per share in its last dividend issuance, with a dividend yield of 2.83%. Its shares currently carry a Moderate Buy consensus rating from 17 analysts, with an average price target of $321.69 that implies about 34% upside.
- Medtronic (MDT) — Medtronic is the world’s biggest medical device company, pushing ahead of rival Johnson & Johnson (JNJ). The company’s product lineup includes devices such as pacemakers, defibrillators, and remote monitoring and patient-centered software. The Ireland-based company currently has a dividend payout ratio of 152.60%. MDT paid 71 cents per share in its last dividend issuance, with a dividend yield of 3.23%. Its shares currently carry a Moderate Buy consensus rating from 21 analysts, with an average price target of $108.39 that suggests about 23% upside.
- McDonald’s (MCD) — McDonald’s is a U.S. fast food giant known globally for its McDonald’s restaurant franchise. The Chicago-based company currently has a dividend payout ratio of 120.13%. It paid $1.60 per share in its last dividend issuance, with a dividend yield of 2.38%. MCD stock also currently holds a Moderate Buy consensus rating from 25 Wall Street analysts. This comes with an average price target of $349.48, which implies roughly 15% upside.
More on Dividend Aristocrats
Some market watchers extend the dividend aristocrat label to recent spin-offs if their parent companies satisfy the stated track record, effectively crediting the offspring with the parent’s dividend history.
Interested in More Dividend Aristocrat Stocks?
To find more stocks like these, take a look at TipRanks’ Dividend Aristocrats tool.
The page provides an exhaustive list of all dividend aristocrats, including their most recent dividend yields, previous dividend amounts, payout ratios, and other details.