When a company can avoid cutting its dividend even during economic recessions and crises, investors know it is a reliable stock. However, there’s a special breed of dividend stocks that takes reliability, consistency and dependability to another level.
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The Dividend Aristocrats Index, assembled by S&P Dow Jones Indices, contains 67 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. Here are nine of the best dividend aristocrat stocks to buy, according to CFRA Research analysts:
| Stock | Implied upside from Dec. 12 close | Forward dividend yield |
| Dover Corp. (ticker: DOV) | 6.5% | 1.4% |
| Emerson Electric Co. (EMR) | 23.8% | 2.3% |
| Cincinnati Financial Corp. (CINF) | 9.9% | 2.9% |
| Coca-Cola Co. (KO) | 14.4% | 3.1% |
| Kenvue Inc. (KVUE) | 10.8% | 3.9% |
| Federal Realty Investment Trust (FRT) | 8.7% | 4.4% |
| PPG Industries Inc. (PPG) | 4.6% | 1.8% |
| Abbott Laboratories (ABT) | 5.9% | 1.9% |
| PepsiCo Inc. (PEP) | 24.7% | 2.9% |
Dover Corp. (DOV)
Dover is an industrial machinery company that produces specialized industrial products and manufacturing equipment. Dover has also raised its dividend for 68 consecutive years, the longest track record of dividend hikes among all dividend aristocrats. Analyst Jonathan Sakraida says Dover shares are undervalued, given the company’s successful portfolio shift toward higher-margin products and higher-growth end-markets. He says cost-cutting, automation and divestment of underperforming assets could help Dover further improve margins. After mostly flat sales in 2023, Sakraida projects a return to revenue growth for Dover in 2024. CFRA has a “buy” rating and $155 price target for DOV stock, which closed at $145.49 on Dec. 12.
Forward dividend yield: 1.4%
Emerson Electric Co. (EMR)
Emerson Electric is a diversified global industrial technology company. Sakraida says Emerson has been investing in merger and acquisition deals as part of its long-term strategy to transition to a pure-play automation company that has several large, attractive end-markets, including industrial software, renewable power, life sciences, and metals and mining. While the company’s plan certainly has risks, Sakraida says Emerson’s recent exits from lower-growth businesses are a step in the right direction. He says decarbonization, digitization and factory re-shoring will remain tailwinds for Emerson in 2024. CFRA has a “buy” rating and $112 price target for EMR stock, which closed at $90.44 on Dec. 12.
Forward dividend yield: 2.3%
Cincinnati Financial Corp. (CINF)
Cincinnati Financial is an insurance holding company that primarily markets property and casualty coverage but also provides life insurance and asset management services. Analyst Catherine Seifert says Cincinnati Financial’s third-quarter earnings report suggests the company has regained its revenue growth momentum and is generating solid underwriting results. Seifert says the company’s focus on steady, profitable growth is the right approach for the long term. She projects between 6% and 9% growth in property-casualty earned premiums and between 8% and 12% growth in net investment income in 2024. CFRA has a “buy” rating and $115 price target for CINF stock, which closed at $104.63 on Dec. 12.
Forward dividend yield: 2.9%
Coca-Cola Co. (KO)
Coca-Cola is one of the world’s most valuable brands and is the largest manufacturer of soft drinks and syrups. Analyst Garrett Nelson says the stock’s recent underperformance is a buying opportunity, given Coca-Cola’s brand value and impressive total return potential. Nelson says the resolution of Coca-Cola’s IRS tax case will remove a major overhang for the stock and allow investors to shift their focus to the company’s strong underlying fundamentals, including its rebounding on-premise sales and its significant pricing leverage. He projects 4% revenue growth in 2024. CFRA has a “strong buy” rating and $68 price target for KO stock, which closed at $59.42 on Dec. 12.
Forward dividend yield: 3.1%
[READ: 15 Best Dividend Stocks to Buy Now]
Kenvue Inc. (KVUE)
Kenvue is the largest pure-play consumer health care stock and is the owner of popular brands such as Band-Aid, Tylenol, Neutrogena, Aveeno, Johnson’s, Listerine and Nicorette. Kenvue was a spinoff from parent company Johnson & Johnson (JNJ) and went public in May 2023. Johnson & Johnson has raised its dividend for 60 consecutive years and held a split-off exchange offer to trade KVUE shares for JNJ shares, so Standard & Poor’s added Kenvue to its Dividend Aristocrats Index in August 2023. Analyst Ana Garcia says Kenvue has a strong presence in attractive consumer health markets. CFRA has a “buy” rating and $23 price target for KVUE stock, which closed at $20.75 on Dec. 12.
Forward dividend yield: 3.9%
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 4.4% dividend, the highest of any stock on this list. Analyst Michael Elliott says a resilient U.S. economy and strong consumer spending trends have benefited Federal Realty’s tenants and driven robust leasing demand. Elliott is bullish on the company’s strategy of developing communities that include both commercial and residential units. He projects at least 4% revenue growth in 2024. CFRA has a “buy” rating and $108 price target for FRT stock, which closed at $99.33 on Dec. 12.
Forward dividend yield: 4.4%
PPG Industries Inc. (PPG)
PPG Industries supplies paints and other coatings and specialty products to the construction, industrial, transportation and consumer products markets. Analyst Emily Nasseff Mitsch says PPG shares are undervalued, and the company has both short- and long-term growth opportunities, especially in the electric vehicle market. Elevated interest rates have weighed on residential construction, repair and remodeling demand. However, Mitsch says an aging U.S. housing inventory will help demand recover, and protective and marine coatings, aerospace and auto sales will be bright spots in 2024. CFRA has a “strong buy” rating and $152 price target for PPG stock, which closed at $145.37 on Dec. 12.
Forward dividend yield: 1.8%
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 diversified business, growing market share, strong balance sheet and consistently rising dividend will help the stock outperform its peers in the long term. Falling COVID-19-related sales have weighed on Abbott’s growth in 2023, but Meyer projects a return to 4% revenue growth in 2024. She says Abbott has innovative product launches ahead and the diabetes market is a particularly large opportunity. CFRA has a “buy” rating and $113 price target for ABT stock, which closed at $106.68 on Dec. 12.
Forward dividend yield: 1.9%
PepsiCo Inc. (PEP)
PepsiCo is a global beverage and snack company. Nelson says PepsiCo is an excellent defensive blue-chip investment with low volatility, an attractive financial position and extremely stable earnings. In addition, Nelson says the company’s valuable brands, including Frito-Lay, Gatorade and Pepsi, have allowed the company to successfully pass through inflationary costs to customers by raising prices. He says international Frito-Lay sales will likely be PepsiCo’s primary long-term growth driver. Nelson says the company’s focus on healthier snacks and beverages could also provide a revenue bump. CFRA has a “strong buy” rating and $210 price target for PEP stock, which closed at $168.47 on Dec. 12.
Forward dividend yield: 2.9%
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Update 12/13/23: This story was previously published at an earlier date and has been updated with new information.
