The article uses TipRanks’ Dividend Aristocrat tool to identify three dividend aristocrat stocks that have a Buy rating on Wall Street and hold at least 15% upside. The stocks are:
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Trade IBM with leverageDividend aristocrats are S&P 500 companies that have increased their dividend payments annually for a minimum of 25 straight years. This consistency makes them highly sought after by investors looking for a source of steady income.
Why These Dividend Aristocrats?
According to Wall Street analysts, the three stocks listed below are worth buying. Each stock currently has a dividend payout ratio of at least 57%, meaning that each company recently distributed 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 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.
- International Business Machines (IBM) — IBM is a tech company focused on hybrid cloud, artificial intelligence, and quantum computing services. It empowers organizations with capabilities for business automation, data and analytics, and on-premises and cloud-based server and storage solutions. IBM is now working on extending its AI and quantum capacity to race car design. The New York-based company currently has a dividend payout ratio of 56.56%. IBM paid $1.69 per share in its last dividend issuance, with a dividend yield of 2.91%. Its shares currently carry a Moderate Buy consensus rating from 19 analysts, with an average price target of $298.44 that implies roughly 28% upside.
- AbbVie (ABBV) — AbbVie is an American drugmaker known for its medications for autoimmune diseases, rheumatoid arthritis, and chronic lymphocytic leukemia. While the sales of its flagship Humira drug are under pressure, newer immunology drugs Skyrizi and Rinvoq are stepping in, helping to fuel the company’s latest earnings beat. The Illinois-based company currently has a dividend payout ratio of 152.60%. ABBV paid $1.73 per share in its last dividend issuance, with a dividend yield of 3.19%. Its shares currently carry a Moderate Buy consensus rating from 22 analysts, with an average price target of $253.85 that suggests more than 22% upside.
- McDonald’s (MCD) — McDonald’s is an American fast food giant and the brain behind the popular McDonald’s restaurant franchise. The Chicago-based company currently has a dividend payout ratio of 119.69%. It paid $1.59 per share in its last dividend issuance, with a dividend yield of 2.47%. MCD stock also currently holds a Moderate Buy consensus rating from 26 Wall Street analysts. This comes with an average price target of $347.13, which implies roughly 21% upside.
More on Dividend Aristocrats
Some market watchers extend the dividend aristocrat label to recent spin-offs if their parent companies satisfy the stated track record, effectively crediting the offspring with 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.