When a company can avoid cutting its dividend even during economic recessions and crises, investors know it is a reliable stock. There’s a special breed of dividend stocks that takes reliability, consistency and dependability to another level, however.
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The Dividend Aristocrats are a group of 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 analysts:
| Stock | Trailing annual dividend yield | Implied upside |
| Procter & Gamble Co. (ticker: PG) | 2.2% | 4.0% |
| Genuine Parts Co. (GPC) | 2.7% | 27.3% |
| Emerson Electric Co. (EMR) | 1.9% | 19.9% |
| Cincinnati Financial Corp. (CINF) | 2.7% | 12.8% |
| Coca-Cola Co. (KO) | 2.9% | 8.3% |
| Colgate-Palmolive Co. (CL) | 1.9% | 2.8% |
| Kenvue Inc. (KVUE) | 3.2% | 24.1% |
| Federal Realty Investment Trust (FRT) | 4.3% | 18.7% |
| PPG Industries Inc. (PPG) | 2.0% | 22.1% |
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns several popular brands, including Pampers, Tide and Gillette. Procter has also raised its dividend for 68 consecutive years, the longest track record of dividend hikes on this list. Analyst Ana Garcia says U.S. consumers are under pressure from inflation and elevated interest rates, but the U.S. economy remains strong. Garcia says Procter has maintained gross margins near pandemic highs. In addition to its dividend, Procter has a strong balance sheet and an aggressive buyback program. CFRA has a “buy” rating and $175 price target for PG stock, which closed at $168.26 on June 21.
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 the company’s stock price is a buying opportunity for long-term dividend investors. Genuine likely won’t deliver any huge returns for shareholders in the near future, but Nelson says the stock is a lower–beta, defensive investment in a recession-resistant industry. The stock trades at a premium valuation, but Nelson says that premium is warranted given Genuine’s history of dividend growth and earnings stability. CFRA has a “buy” rating and $180 price target for GPC stock, which closed at $141.43 on June 21.
Emerson Electric Co. (EMR)
Emerson Electric is a diversified global industrial technology company. Analyst Jonathan Sakraida says Emerson has successfully reshaped its portfolio to align the company with secular growth trends, including automation, renewable energy, industrial software, life sciences and metals and mining. At the same time, the company has exited lower-growth businesses. Sakraida says the restructured Emerson should benefit from a number of long-term tailwinds, including decarbonization, factory reshoring and digitization. He says Emerson’s elevated order backlogs have created significant financial visibility through fiscal 2025. CFRA has a “buy” rating and $130 price target for EMR stock, which closed at $108.41 on June 21.
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 its revenue growth momentum while maintaining solid underwriting numbers. Seifert is bullish on the company’s focus on slower growth, profitable businesses has improved the company’s long-term outlook. She projects property-casualty earned premiums will grow between 7% and 12% in 2024 and continue to rise by between 8% and 13% in 2025. CFRA has a “buy” rating and $130 price target for CINF stock, which closed at $115.21 on June 21.
[SEE: 7 Best Monthly Dividend Stocks to Buy Now.]
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 investors should see Coca-Cola’s recent stock underperformance as a long-term buying opportunity. He is bullish on the company’s total return potential and valuable global brands. Coca-Cola is facing a potential $12 billion liability related to an Internal Revenue Service tax case, but Nelson says a resolution to the case will lift a major overhang and allow investors to once again focus on the company’s impressive fundamentals. CFRA has a “buy” rating and $68 price target for KO stock, which closed at $62.77 on June 21.
Colgate-Palmolive Co. (CL)
Colgate-Palmolive produces household and nutrition products, including toothpaste, toothbrushes, shampoos and deodorants. Analyst Arun Sundaram says Colgate reported impressive organic sales growth in the most recent quarter despite a weakening consumer spending environment. Sundaram says Colgate is gaining market share, growing organic sales and successfully expanding its business. He says management is executing well, and the company has a diversified portfolio of products and a global presence. He projects operating margins will continue to expand in coming years and could eventually return to the 24% to 25% range. CFRA has a “buy” rating and $100 price target for CL stock, which closed at $97.27 on June 21.
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. While Kenvue is a new standalone company, Johnson & Johnson has raised its dividend for 62 consecutive years, so S&P added Kenvue to its Dividend Aristocrats list in August 2023. Garcia says she trusts the company’s ability to adapt and reward shareholders over the long term. CFRA has a “buy” rating and $23 price target for KVUE stock, which closed at $18.53 on June 21.
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, which is the highest yield on this list. Analyst Michael Elliott says a healthy U.S. economy and positive consumer spending trends have helped support tenants and driven leasing demand. He says the REIT’s portfolio is focused on affluent metropolitan markets that have high barriers to entry, attractive demographics and limited supply. CFRA has a “strong buy” rating and $119 price target for FRT stock, which closed at $100.25 on June 21.
PPG Industries Inc. (PPG)
PPG Industries supplies paints and other coatings and specialty products to the construction, industrial, transportation and consumer products markets. Seifert says PPG shares are attractively valued given the company’s short and long-term growth opportunities, particularly in emerging markets. She says high mortgage rates have been a headwind in the residential real estate and do-it-yourself home improvement markets, but an aging U.S. housing stock and historically low U.S. housing inventory levels suggest a positive medium to long-term outlook for PPG and other companies exposed to these markets. CFRA has a “buy” rating and $157 price target for PPG stock, which closed at $128.59 on June 21.
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9 Dividend Aristocrat Stocks to Buy Now originally appeared on usnews.com
Update 06/24/24: This story was previously published at an earlier date and has been updated with new information.
