Earning regular dividend income is a crucial part of the investment journey. But what is even more important is identifying dividend aristocrats — companies that have raised their dividends for at least 25 consecutive years!
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What are Dividend Aristocrats?
Dividend Aristocrats are companies listed on the S&P 500 index, which tracks the largest 500 publicly traded American companies. In addition, analysts sometimes consider new companies spun off from older institutions to be dividend aristocrats, as they are seen as having inherited their former parent companies’ long histories of dividend payments.
Which Dividend Aristocrat Stocks Are the Best to Buy?
According to Wall Street analysts, the three stocks listed below are worth buying. Each stock has a dividend payout ratio of at least 50%, meaning each company distributes 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 at least 10% 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.
Abbott Laboratories (ABT) — Abbott is an Illinois-based healthcare company that specializes in diagnostics, medical devices, and nutritional products and is known for Similac, an infant formula.
Abbott’s dividend payout ratio currently stands at 145.21%. The company paid $0.59 per share in its last dividend issuance with a dividend yield of 1.84%. ABT stock currently enjoys a Strong Buy consensus rating from 20 Wall Street analysts, with an average price target of $146.63 that suggests about 14% upside potential.
Nucor Corporation (NUE) — Nucor is the largest steel manufacturer in the U.S. known for producing steel products such as reinforcing bars, sheet steel, and structural beams.
Nucor’s dividend payout ratio is about 72.37%. The company paid $0.55 per share in its last dividend issuance with a dividend yield of 1.67%. NUE stock currently boasts a Strong Buy consensus rating from 11 Wall Street analysts, with an average price target of $161.90 that indicates a 19% upside potential.
A.O. Smith Corporation (AOS) — A.O. Smith is a water technology company that is based in Wisconsin and is known for its residential and commercial water heaters, boilers, and water treatment systems that are marketed across North America, Europe, India, and China.
AOS’s dividend payout ratio is about 73.71%. The company paid $0.36 per share in its last dividend issuance with a dividend yield of 1.95%. Its stock currently holds a Moderate Buy consensus rating from 10 Wall Street analysts, with an average price target of $80.00 that suggests about a 15% growth chance.
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.