If you’re after reliable dividend income, dividend aristocrats should be on your radar — they are companies with impressive records of raising payouts for at least 25 years!
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
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.
PepsiCo, Inc. (PEP) — PepsiCo is a globally prominent beverage and food company based in New York. It is well-known for iconic brands such as Pepsi, Mountain Dew, Lay’s, Doritos, Gatorade, and Quaker Oats, spanning soft drinks, snacks, and nutrition products.
The company’s dividend payout ratio is currently 219.40%. PepsiCo paid $1.42 per share in its last dividend issuance, with a dividend yield of 3.89%. PEP stock presently holds a Moderate Buy consensus rating from 13 Wall Street analysts, with an average price target of $157.92, suggesting about 11% upside.
Essex Property Trust, Inc. (ESS) — Essex is a California-based real estate investment trust that specializes in acquiring, developing, and managing multifamily residential properties. The company’s upscale apartment communities are scattered across western coastal states in the U.S., especially in California and Washington.
The company’s dividend payout ratio is currently 154.41%. Essex paid $2.57 per share in its last dividend issuance, with a dividend yield of 3.96%. ESS stock currently has a Moderate Buy consensus rating from the six top Wall Street analysts covering it, with an average price target of $289.55, suggesting more than 11% upside.
Amcor (AMCR) — Amcor is a Swiss packaging company that provides flexible and rigid packaging for food, beverage, pharmaceutical, and personal care products. Its packaging products are used by companies such as Nestlé (NSRGY), Unilever (UL), and Pfizer (PFE).
The Zurich-based company’s dividend payout ratio is currently 94.27%. Amcor paid $0.13 per share in its last dividend issuance, with a dividend yield of 6.49%. AMCR stock currently enjoys a Strong Buy consensus rating from nine Wall Street analysts, with an average price target of $10.12, implying a 26% upswing from its current trading level.
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.