When a company can avoid cutting its dividend even during economic recessions and crises, investors know it’s a reliable investment. However, there’s a special breed of dividend stocks that takes reliability, consistency and dependability to another level. The “dividend aristocrats” are a group of more than 60 S&P 500 stocks that have somehow managed to raise their dividend payments each year for at least 25 consecutive years. For decades, each dividend aristocrat has rewarded its investors for loyalty and demonstrated its commitment to shareholder returns.
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Here are nine of the best dividend aristocrat stocks to buy now, according to CFRA Research analysts:
| Stock | Forward dividend yield | Implied upside from June 20 close |
| Dover Corp. (ticker: DOV) | 1.4% | 17.1% |
| Parker-Hannifin Corp. (PH) | 1.6% | 2.2% |
| Coca-Cola Co. (KO) | 3% | 14.3% |
| Federal Realty Investment Trust (FRT) | 4.5% | 17.8% |
| Abbott Laboratories (ABT) | 1.9% | 21.8% |
| PepsiCo Inc. (PEP) | 2.7% | 18.7% |
| S&P Global Inc. (SPGI) | 0.9% | 11.0% |
| Walmart Inc. (WMT) | 1.5% | 10.9% |
| RPM International Inc. (RPM) | 2% | 10.5% |
Dover Corp. (DOV)
Dover is an industrial machinery company that produces specialized industrial products and manufacturing equipment. Dover has also raised its dividend for 67 consecutive years, one of the longest track records of dividend hikes among all dividend aristocrats. Analyst Jonathan Sakraida says Dover’s decision to cut costs and adjust its portfolio to focus on less capital-intensive and higher-margin products will drive long-term earnings growth acceleration and allow Dover to outperform peers. Sakraida projects 5% revenue growth in 2023. Dover pays a 1.4% dividend. CFRA has a “buy” rating and $168 price target for DOV stock, which closed at $143.43 on June 20.
Parker-Hannifin Corp. (PH)
Parker-Hannifin produces industrial pneumatic, hydraulic, and vacuum motion and control systems. Sakraida says Parker has a strong free cash flow outlook, and the aerospace industry is in the early innings of a cyclical recovery. In addition, acquisitions
and investments have positioned the company to be more resilient during future downturns. He’s positive on the company’s acquisition of Meggitt, which will improve Parker-Hannifin’s aerospace and defense offerings. Sakraida says deleveraging will be a top priority. Parker-Hannifin has a 1.6% dividend and has also raised its payout for 66 consecutive years. CFRA has a “buy” rating and $380 price target for PH stock, which closed at $371.85 on June 20.
Coca-Cola Co. (KO)
Coca-Cola is one of the world’s most valuable brands and is the largest manufacturer of soft drinks. Analyst Garrett Nelson says Coca-Cola’s brands remain valuable, and currency headwinds should moderate in 2023. In addition, the pending resolution of Coca-Cola’s Internal Revenue Service tax dispute should eliminate a major overhang for the stock, returning investors’ focus to the company’s attractive underlying business fundamentals and valuation. Nelson projects 5% revenue growth in 2023. Coca-Cola has a 3% dividend and has raised its payout for 61 consecutive years. CFRA has a “buy” rating and $70 price target for KO stock, which closed at $61.26 on June 20.
Federal Realty Investment Trust (FRT)
Federal Realty Investment Trust is a retail real estate investment trust, or REIT, that owns and manages community and neighborhood shopping centers. Federal Realty also has a 4.5% dividend, the highest of any stock on this list. Analyst Michael Elliott says Federal Realty has an impressive portfolio of assets and a long-term track record of execution. The company has recovered from its pandemic slump and has benefited from elevated consumer spending and demand growth. Federal Realty has raised its payout for 55 consecutive years. CFRA has a “buy” rating and $111 price target for FRT stock, which closed at $94.25 on June 20.
[SEE: 7 of the Best High-Dividend ETFs.]
Abbott Laboratories (ABT)
Abbott Laboratories is a diversified global health care
company that produces branded generic pharmaceuticals, medical devices and other nutritional and diagnostic products. Analyst Paige Meyer says Abbott’s combination of highly innovative products, strong balance sheet and growing dividend will help the company gain market share and outperform its peer group in the long term. That said, declining COVID-19 sales will hurt sales in the near term, and Meyer projects an 8% drop in revenue this year. Abbott has a 1.9% dividend and has raised its payout for 51 consecutive years. CFRA has a “buy” rating and $130 price target for ABT stock, which closed at $106.70 on June 20.
PepsiCo Inc. (PEP)
PepsiCo is a global beverage and snack company. Nelson says PepsiCo is an attractively valued blue-chip investment that has stable earnings, low volatility and a healthy balance sheet. The company’s valuable brands allow PepsiCo to raise prices and pass rising costs through to customers. He says Frito-Lay sales and international expansion will be the company’s two primary long-term growth drivers. Nelson projects 6% revenue growth in 2023 and 4% growth in 2024. PepsiCo has a 2.7% dividend and has raised its payout for 50 consecutive years. CFRA has a “strong buy” rating and $220 price target for PEP stock, which closed at $185.31 on June 20.
S&P Global Inc. (SPGI)
S&P Global provides credit ratings, benchmarks, research and analytics for investors and other market participants. Analyst Alexander Yokum says S&P’s ratings business troughed in the second half of 2022 and should rebound in 2023 and 2024. In addition, he says a stable interest rate environment and less macroeconomic uncertainty should be growth catalysts, and the acquisition of IHS Markit should diversify S&P’s business and reduce volatility. S&P Global has a 0.9% dividend and has raised its payout for 50 consecutive years. CFRA has a “buy” rating and $435 price target for SPGI stock, which closed at $391.84 on June 20.
Walmart Inc. (WMT)
With a chain of nearly 11,000 stores, Walmart is the world’s largest discount retailer. Analyst Arun Sundaram says Walmart has mostly eliminated the inventory and cost problems that plagued the company in 2022. Sundaram says fiscal 2024 is the beginning of a multiyear margin expansion cycle for Walmart, driven by high-margin businesses such as advertising, fulfillment services and subscription revenue. He projects 4% revenue growth in fiscal 2024. Walmart has a 1.5% dividend and has raised its payout for 50 consecutive years. CFRA has a “buy” rating and $171 price target for WMT stock, which closed at $154.16 on June 20.
RPM International Inc. (RPM)
RPM International produces specialty chemicals used for industrial and specialty applications, including do-it-yourself jobs and repair and remodel projects. Analyst Emily Nasseff Mitsch says RPM shares are undervalued, and growth in manufacturing and nonresidential institutional construction spending will be a bullish demand driver. Mitsch says RPM is highly exposed to manufacturing and institutional construction spending, which will be driven in part by “reshoring,” or the trend of bringing jobs previously exported overseas back to the U.S. She expects elevated revenue and earnings despite weakness in RPM’s consumer segment. RPM has a 2% dividend and has raised its payout for 49 consecutive years. CFRA has a “buy” rating and $92 price target for RPM stock, which closed at $83.29 on June 20.
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9 Dividend Aristocrat Stocks to Buy Now originally appeared on usnews.com
Update 06/21/23: This story was previously published at an earlier date and has been updated with new information.
