Walmart (WMT), Abbott Laboratories (ABT), and NextEra Energy (NEE) are the three dividend aristocrat stocks with a Strong Buy rating on Wall Street and payout ratios of more than 50%, according to TipRanks’ Dividend Aristocrat tool.
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High conviction AMZN bears now have this Tradr ETFDividend aristocrats are members of the S&P 500 that have raised their dividends every year for at least 25 consecutive years. For income-oriented investors, that long-term track record is attractive because it supports a steady stream of cash payouts while still offering participation in the market’s growth.
Why These 3 Dividend Aristocrats Are Top Picks
According to Wall Street analysts, the three stocks listed below are worth buying. They all have a payout ratio above 50%, meaning that each company recently distributed more than half of its 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 significant 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.
- Walmart (WMT) — Walmart is an American retail giant that is currently the world’s second-largest company in terms of sales, having been recently overtaken by Amazon (AMZN). It operates retail chains, including supermarkets, hypermarkets, and warehouse clubs. The Arkansas-based company currently has a dividend payout ratio of 71.33%. WMT currently has a dividend yield of 0.80%. Its shares currently boast a Strong Buy consensus rating from 26 analysts. This comes with an average price target of $141.91 that suggests about 18% upside.
- Abbott Laboratories (ABT) — Abbott is a century-plus-old American healthcare company that manufactures and sells medical devices, diagnostic instruments and systems, nutritional products, and branded medications. The Illinois-based company currently has a dividend payout ratio of 140.12%. Abbott paid 50 cents per share in its last dividend issuance, with a dividend yield of 2.78%. Its shares carry a Strong Buy consensus rating from 20 Wall Street analysts. This comes with an average price target of $120.24, which implies roughly 38% upside from current trading levels.
- NextEra Energy (NEE) — NextEra generates electricity from sources such as nuclear, coal, and natural gas and is frequently described as the world’s largest producer of wind and solar energy. The Florida-based company currently has a dividend payout ratio of 121.93%. NextEra paid 62 cents per share in its last dividend issuance, with a dividend yield of 2.59%. Its shares currently boast a Strong Buy consensus rating from 12 Wall Street analysts. This is based on an average price target of $101.92 that indicates approximately 15% upside.
More on Dividend Aristocrats
Some observers also treat recent spin-offs as dividend aristocrats if their parent companies meet the required track record, effectively granting the offshoot the parent’s dividend history.
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.