Earning dividend income is a crucial part of the investment journey. But what is even more important is identifying dividend aristocrat stocks.
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What are Dividend Aristocrats?
Dividend Aristocrats refer to companies that are listed on the benchmark S&P 500 index, which tracks the largest 500 publicly traded American companies. A business must have increased its dividend for at least 25 consecutive years to be considered a dividend aristocrat.
However, analysts sometimes also consider new companies spun off from older institutions as dividend aristocrats, seen as having inherit the origin company’s long history of dividend payments.
So, What Are the Best Dividend Aristocrat Stocks to Buy?
According to Wall Street analysts, the three stocks listed below are worth buying based on their past strong dividend deliveries. Each stock holds a dividend payout ratio of at least 50%, which means that each company distributes at least half of its net earnings to shareholders as dividends.
Furthermore, each company currently has at least a Buy rating from either the top analysts covering the stock or from overall Wall Street consensus. They also hold, at minimum, an upside potential of 10%.
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.
Target Corporation (TGT) — Target a Minneapolis-based retail company known for operating thousands of discount department stores scattered across the U.S. with a wide range of product offerings, from clothing to electronics.
Target’s dividend payout ratio currently stands at 180.10%. The company paid $1.14 per share in its last dividend issuance with a dividend yield of 5.06%. TGT stock currently has an average price target of $105.88 from the top 17 Wall Street analysts, with a 17.06% upside.
J.M. Smucker Company (SJM) — JM Smucker is a long-standing packaged food company known for its fruit-based spreads brand Smucker’s, peanut butter Jif, and ready-to-eat sealed sandwich Uncrustables, among others.
JM Smucker’s dividend payout ratio is about 102.00%. The company paid $1.10 per share in its last dividend issuance with a dividend yield of 4.28%. SJM stock currently has an average price target of $117.43 from 17 Wall Street analysts, with a 14.68% upside.
Kenvue, Inc. (KVUE) — Kenvue is a consumer health company that spun off from Johnson & Johnson (JNJ) in 2023 and is known for its products such as pain reliever Tylenol and Motrin.
Kenvue’s dividend payout ratio is about 76.87%. The company paid $0.21 per share in its last dividend issuance with a dividend yield of 5.07%. KVUE stock currently has an average price target of $20.27 from 13 Wall Street analysts, with a 24.28% upside.
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, their last dividend yields, the last dividends they paid, and their payout ratios, among other details.