Hunting for steady cash flow from your portfolio? Dividend aristocrats are a great place to start.
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What are Dividend Aristocrats?
Dividend aristocrats are a small club of S&P 500 companies that have managed to bump up their dividends every single year for at least 25 years straight. They’re the blue-chip names investors lean on when they want consistency, not drama.
And here’s a fun twist: even some brand-new spin-offs can sneak into the club. That’s because the market often lets them “inherit” their parent company’s long dividend track record, so they can qualify as aristocrats almost from day one.
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.
Kimberly-Clark Corporation (KMB) — This is a long-running consumer goods company that focuses on personal care and hygiene products. Kimberly-Clark produces diapers and baby wipes under the Huggies brand, facial tissues under Kleenex, and adult incontinence care products under Depend & Poise.
The Texas-based company’s dividend payout ratio is currently 212.93%. Kimberly-Clark paid $1.26 per share in its last dividend issuance, with a dividend yield of 4.71%. KMB stock presently holds a Moderate Buy consensus rating from 15 Wall Street analysts, with an average price target of $128.36, implying approximately 22% upside potential.
Chevron Corporation (CVX) — Chevron is the second-largest oil and gas producer in the U.S. and one of the Big Oil supermajors. It is rich in free cash flow and is planning to grow it by over 10% annually through 20230. It hit record crude oil production in its most recent quarter.
The company’s dividend payout ratio currently stands at 174.49%. Chevron paid $1.17 per share in its last dividend issuance, with a dividend yield of 4.55%. CVX stock currently enjoys a Strong Buy consensus from 17 Wall Street analysts, with an average price target of $177 that offers approximately 17% upside.
Kenvue Inc. (KVUE) — Kenvue is a consumer health company that was spun off from pharmaceutical giant Johnson & Johnson (JNJ) in 2023 and is considered to have inherited the latter’s dividend history. Kenvue makes pain relief medicine Tylenol and oral care product Listerine, among others. Kimberly-Clark is currently looking to acquire and merge with Kenvue in a $48.7 billion deal expected to close in the second half of 2026.
Kenvue’s dividend payout ratio is currently 77.10%. The New Jersey-based company paid 21 cents per share in its last dividend issuance, with a dividend yield of 4.89%. KVUE stock currently has a Moderate Buy consensus rating from 13 Wall Street analysts, with an average price target of $19.42, indicating over 14% 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.