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.
Stanley Black & Decker, Inc. (SWK) — Stanley Black & Decker is a Connecticut-based manufacturer of industrial tools, household hardware, and security systems. It operates power tool and equipment brands such as DeWalt, Craftsman, and Black+Decker.
The company’s dividend payout ratio is currently 144.93%. Stanley Black & Decker paid $0.83 per share in its last dividend issuance, with a dividend yield of 4.69%. SWK stock presently holds a Moderate Buy consensus rating from seven Wall Street analysts, with an average price target of $82.71, suggesting almost 15% upside.
Linde Plc (LIN) — Linde is an industrial gas and engineering firm that produces oxygen and hydrogen and provides clean energy solutions. The company, which has a strong operational presence in the U.K., merged with American industrial gas producer Praxair in 2018.
The company’s dividend payout ratio is currently 75.65%. Linde paid $1.50 per share in its last dividend issuance, with a dividend yield of 1.32%. LIN stock currently has a Strong Buy consensus rating from 16 Wall Street analysts, with an average price target of $519.00, implying about 17% growth potential.
S&P Global (SPGI) — S&P Global is a New York-based provider of market intelligence, research, and credit ratings. It is well-known for the S&P 500 Index and the S&P Global Ratings.
The organization’s dividend payout ratio is currently 60.30%. S&P Global paid $0.96 per share in its last dividend issuance, with a dividend yield of 0.77%. SPGI stock currently has a Strong Buy consensus rating from 17 Wall Street analysts, with an average price target of $612.47, indicating about 23% upside potential.
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.