Looking for a reliable income from your investments? One proven path is through dividend aristocrats.
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What Are Dividend Aristocrats?
Dividend aristocrats are elite members of the S&P 500 index that have raised their dividends every single year for at least 25 years. These firms aren’t just steady payers; they’re household names that have built reputations on consistency.
Interestingly, even some newer corporate spinoffs qualify. This is because analysts often extend the parent company’s long dividend history to the offspring, allowing them to inherit aristocratic status right from the start.
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 that each company distributes at minimum 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) — This is a long-standing American healthcare company based in Illinois. The company, which is looking to generate $12 billion annually from its $21 billion planned acquisition of cancer treatment provider Exact Sciences (EXAS), specializes in diagnostics, medical devices, and nutritional products. It is known for the infant formula Similac.
Abbott’s dividend payout ratio currently stands at 143.92%. The company paid $0.59 per share in its last dividend issuance with a dividend yield of 1.87%. ABT stock currently enjoys a Strong Buy consensus from 18 Wall Street analysts, with an average price target of $147.13 that offers nearly 19% upside.
Caterpillar Inc. (CAT) — This is another Illinois-based American business that is a heavy machinery manufacturer. Caterpillar manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines across the world. Its stock recently hit an all-time high, riding on the AI boom.
Caterpillar’s dividend payout ratio is currently 61.59%. The company paid $1.31 per share in its last dividend issuance, with a dividend yield of 1.06%. CAT stock presently holds a Moderate Buy consensus rating from 18 Wall Street analysts, with an average price target of $600.80, implying about 10% upside potential.
Walmart Inc. (WMT) — Walmart is the world’s largest retailer that operates a chain of discount, hypermarket, and grocery stores. The company said it is now a technology company and, in recent days, appointed its long-time executive, John Furner, to lead it through the tariff storm.
Walmart’s dividend payout ratio is currently 72.48%. The company paid 23 cents per share in its last dividend issuance, with a dividend yield of 0.91%. WMT stock currently has a Strong Buy consensus rating from 25 Wall Street analysts, with an average price target of $117.71, indicating approximately 10% 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.