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.
General Dynamics Corporation (GD) — General Dynamics is a major U.S. aerospace and defense company that designs, manufactures, and sells business jets, nuclear-powered submarines, combat vehicles, and IT systems to government and military clients.
The Virginia-based company’s dividend payout ratio is currently 115.88%. General Dynamics paid $1.50 per share in its last dividend issuance, with a dividend yield of 1.67%. GD stock presently holds a Moderate Buy consensus rating from 14 Wall Street analysts, with an average price target of $383.54, suggesting almost 12% upside.
Cintas Corporation (CTAS) — Cintas is an Ohio-based business services provider offering corporate identity uniforms, restroom supplies, safety products, and fire protection. Its primary markets are the U.S., Canada, and Latin America.
The corporation’s dividend payout ratio is currently 81.77%. Cintas paid $0.45 per share in its last dividend issuance, with a dividend yield of 0.86%. CTAS stock currently has a Moderate Buy consensus rating from 12 Wall Street analysts, with an average price target of $221.33, implying almost 19% growth potential.
Ecolab Inc. (ECL) — Ecolab is a Minnesota-based provider of water, hygiene, and energy technologies. It offers industrial cleaning solutions and sanitation systems used in healthcare, foodservice, and manufacturing.
The company’s dividend payout ratio is currently 57.14%. Ecolab paid $0.65 per share in its last dividend issuance, with a dividend yield of 0.93%. ECL stock currently has a Moderate Buy consensus rating from 19 Wall Street analysts, with an average price target of $297.31, suggesting about 15% 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, including their most recent dividend yields, previous dividend amounts, payout ratios, and other details.