Companies considered dividend aristocrats are known for increasing payouts to shareholders every year for more than 25 years. With the ongoing conflict in the Middle East emerging as a key source of headache for investors, these types of stocks can be a good defensive addition to a portfolio for steady income generation.
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The article uses the TipRanks Dividend Aristocrat tool to identify three such names: Amcor (AMCR), Cintas (CTAS), and Church & Dwight (CHD).
Which Dividend Aristocrat Stocks Are the Best to Buy?
According to Wall Street analysts, the three stocks listed below are worth buying. Each stock currently has a dividend payout ratio of at least 69%, meaning that each company recently distributed at least two-thirds 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.
- Amcor (AMCR) — Amcor manufactures and supplies packaging products to a broad range of clients, including food and beverage, medical, and pharmaceutical companies. The Zurich-based company currently has a dividend payout ratio of 69.13%. AMCR paid 65 cents per share in its last dividend issuance, with a dividend yield of 6.67%. Its shares currently carry a Moderate Buy consensus rating from eight analysts, with an average price target of $53.88 that implies about 41% upside.
- Cintas (CTAS) — Cintas is a specialty business services company focused on corporate identity uniforms. It is also engaged in other areas such as first aid and safety services. The Ohio-based company currently has a dividend payout ratio of 73.42%. CTAS paid 45 cents per share in its last dividend issuance, with a dividend yield of 1.03%. Its shares currently carry a Moderate Buy consensus rating from 13 analysts, with an average price target of $214.73 that implies about 28% upside.
- Church & Dwight (CHD) — This U.S. company is a personal care and specialty products manufacturer that sells a broad range of products such as laundry detergents, condoms and lubricants, and battery-operated and manual toothbrushes, among others. The New Jersey-based firm currently has a dividend payout ratio of 101.29%. It paid 31 cents per share in its last dividend issuance, with a dividend yield of 1.26%. CHD stock currently holds a Moderate Buy consensus rating from 15 Wall Street analysts. This comes with an average price target of $104.50, which implies about 13% upside.
What Are Dividend Aristocrats?
Dividend aristocrats are stocks that belong to the elite S&P 500 (SPX) but are further set apart for having lifted and maintained their dividend payouts every single year for at least 25 years.
However, some market analysts believe that recent spin-offs of these types of companies could be admitted to the club based on their parent’s dividend-payment record.
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.