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” are a group of nearly 70 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 analysts:
| Dividend Aristocrat Stock | Trailing Dividend Yield* | Implied Upside* |
| Dover Corp. (ticker: DOV) | 1.2% | 6.1% |
| Procter & Gamble Co. (PG) | 2.3% | 4.8% |
| Genuine Parts Co. (GPC) | 2.5% | 4.3% |
| Emerson Electric Co. (EMR) | 1.9% | 8.0% |
| Cincinnati Financial Corp. (CINF) | 2.6% | 3.2% |
| Coca-Cola Co. (KO) | 3.1% | 9.8% |
| Kenvue Inc. (KVUE) | 3% | 13.9% |
| Federal Realty Investment Trust (FRT) | 4.4% | 19.3% |
| AbbVie Inc. (ABBV) | 3.4% | 5.3% |
*From March 18 close.
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 has successfully restructured its portfolio to focus on higher-margin products and higher-growth end markets. He says the company still has several ways to expand margins further, including cost-cutting measures, automation and divestment of underperforming businesses. Sakraida says Dover’s balance sheet is healthy and it has adequate financial flexibility. CFRA has a “buy” rating and $185 price target for DOV stock, which closed at $174.42 on March 18.
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns a number of popular brands, including Pampers, Tide and Gillette. Analyst Ana Garcia says Procter & Gamble’s margins have been particularly impressive given its rising costs. Garcia says deteriorating health of U.S. consumers is a risk for Procter & Gamble in 2024, but the latest economic data suggest the U.S. economy has been resilient even with interest rates at 22-year highs. Economic growth in China has been disappointing, but Garcia says Procter’s outlook doesn’t wholly depend on China. CFRA has a “buy” rating and $169 price target for PG stock, which closed at $161.21 on March 18.
Genuine Parts Co. (GPC)
Genuine Parts is a wholesale distributor of automotive replacement parts, industrial parts, office products and other supplies. Analyst Garrett Nelson says recent weakness in Genuine Parts’ stock is a buying opportunity. Nelson says Genuine Parts is a defensive, low-beta investment, and its NAPA Auto Parts subsidiary is a recession-resistant business in the event of an economic downturn. He projects 3% revenue growth in 2024. Genuine Parts may appear overvalued compared to peers, but Nelson says the premium is warranted given Genuine’s earnings stability and consistent dividend growth. CFRA has a “buy” rating and $160 price target for GPC stock, which closed at $153.47 on March 18.
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Emerson Electric Co. (EMR)
Emerson Electric is a diversified global industrial technology company. Sakraida says he is bullish on Emerson’s opportunities to restructure its portfolio and align its business with large, secular growth trends. Emerson’s merger and acquisition strategy has been geared toward making the company the world’s largest pure-play automation technology investment focused on attractive end markets such as renewable power, industrial software, life sciences and metals and mining. While Emerson faces execution risks in divesting lower growth businesses, Sakraida says the long-term payoff will likely be worth the risk. CFRA has a “buy” rating and $120 price target for EMR stock, which closed at $111.06 on March 18.
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 has regained revenue growth momentum amid solid underwriting performance. While its growth isn’t what it used to be, Seifert says the company’s focus on more profitable growth will position the company and its investors better in the long term. She projects property-casualty earned premiums will rise between 7% and 12% in 2024 and between 6% and 10% in 2025. CFRA has a “buy” rating and $122 price target for CINF stock, which closed at $118.22 on March 18.
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. Nelson says Coca-Cola has strong, valuable brands and its dividend gives the stock attractive total return potential in the long term. He says the company’s recent currency headwinds are moderating and its period of underperformance may soon be over. Nelson says the resolution of Coca-Cola’s tax dispute with the Internal Revenue Service will cost the company no more than $12 billion and could serve as a major bullish catalyst. CFRA has a “buy” rating and $66 price target for KO stock, which closed at $60.13 on March 18.
Kenvue Inc. (KVUE)
Kenvue is the largest pure-play consumer health stock and is the owner of popular brands such as Band-Aid, Tylenol, Neutrogena, Aveeno, Johnson’s, Listerine and Nicorette. Kenvue was spun-off from parent company Johnson & Johnson (JNJ) and went public in May 2023. Kenvue is a brand new standalone company. However, Johnson & Johnson has raised its dividend for 60 consecutive years, so S&P officially added Kenvue to its Dividend Aristocrats list in August 2023. Garcia says Kenvue is exposed to attractive markets and is undervalued relative to peers. CFRA has a “buy” rating and $23 price target for KVUE stock, which closed at $20.20 on March 18.
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 4.3% dividend, the highest of any stock on this list. Analyst Michael Elliott says a strong U.S. economy has stimulated consumers and boosted leasing demand for Federal Realty. Elliott says the company’s management team has an excellent track record of developing successful mixed-use communities that include a variety of different commercial and multi-family residential units. CFRA has a “strong buy” rating and $119 price target for FRT stock, which closed at $99.79 on March 18.
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company. Its key drug is Humira for treating rheumatoid arthritis, psoriasis, Crohn’s disease and other conditions. Analyst Sel Hardy says the loss of exclusivity on Humira has been a headwind for AbbVie, but immunology drugs Skyrizi and Rinvoq will help improve the company’s growth profile in 2024. AbbVie’s guidance suggests the two drugs could generate more than $15 billion in combined sales by 2025. Hardy says AbbVie will be better positioned for growth once it completes acquisitions of ImmunoGen and Cerevel in mid-2024. CFRA has a “buy” rating and $188 price target for ABBV stock, which closed at $178.49 on March 18.
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9 Dividend Aristocrat Stocks to Buy Now originally appeared on usnews.com
Update 03/19/24: This story was previously published at an earlier date and has been updated with new information.
