Dividend Aristocrats List - For Big Profits in 2024
As 2024 unfolds, investors are increasingly looking for solid, long-term opportunities. One proven strategy is investing in Dividend Aristocrats—companies that have not only consistently paid dividends but have increased them for at least 25 consecutive years. These companies are considered some of the most reliable for generating steady income, especially in unpredictable markets. Below is a table showcasing key metrics for some of the top Dividend Aristocrats, offering fresh insights
| Stock | Dividend Yield | Pay-out Ratio | P/E Ratio | P/B Ratio | ROE | 5y Dividend Growth | 10y Dividend Growth |
|---|---|---|---|---|---|---|---|
| 3M | 2.78% | 55.40% | 16.29% | 15.41% | 0.96% | 4.81% | 10.48% |
| A. O. Smith | 1.76% | 33.62% | 19.17% | 5.61% | 0.30% | 9.93% | 6.02% |
| Abbott Laboratories | 1.94% | 65.30% | 34.10% | 4.94% | 0.15% | 12.74% | 13.80% |
| AbbVie | 3.58% | 212.79% | 59.88% | 50.84% | 0.66% | 10.52% | 13.98% |
| Air Products and Chemicals | 2.26% | 40.88% | 18.16% | 4.08% | 0.25% | 9.73% | 9.44% |
| Albemarle | 1.62% | -14.36% | -6.24% | 1.14% | -0.18% | 3.61% | 5.24% |
| Amcor | 4.93% | 94.93% | 19.09% | 3.75% | 0.20% | 2.25% | 0.00% |
| Aflac | 1.91% | 27.72% | 15.31% | 2.35% | 0.16% | 5.26% | 1.70% |
| Archer-Daniels-Midland | 3.85% | 54.67% | 13.93% | 1.14% | 0.08% | 6.08% | 9.00% |
| Atmos Energy | 2.33% | 47.27% | 20.48% | 1.76% | 0.09% | 8.85% | 7.86% |
| Automatic Data Processing | 1.41% | 58.20% | 31.53% | 22.69% | 0.82% | 12.96% | 11.18% |
| Becton Dickinson | 1.74% | 63.73% | 37.42% | 1.13% | 0.05% | 4.03% | 6.13% |
| Brown-Forman | 1.95% | 41.14% | 21.29% | 5.77% | 0.29% | -12.64% | -2.32% |
| Cardinal Health | 1.70% | 39.27% | 22.72% | -8.76% | -0.38% | 1.10% | 5.38% |
| Caterpillar | 1.42% | 24.61% | 17.26% | 9.50% | 0.58% | 8.80% | 11.26% |
| Chevron | 4.24% | 70.19% | 16.61% | 1.77% | 0.10% | 6.16% | 4.47% |
| Chubb | 1.30% | 14.19% | 11.15% | 1.70% | 0.16% | 3.29% | 0.42% |
| Cincinnati Financial | 2.09% | 15.67% | 7.74% | 1.72% | 0.24% | 7.19% | 6.13% |
| Cintas | 1.17% | 33.66% | 52.00% | 21.19% | 0.40% | 32.75% | 27.07% |
| Clorox | 2.95% | 167.23% | 57.18% | 340.23% | 2.68% | 5.05% | 5.83% |
| Coca-Cola | 3.07% | 78.28% | 26.14% | 10.26% | 0.40% | 3.36% | 5.09% |
| Colgate-Palmolive | 2.12% | 56.15% | 26.63% | 175.65% | 8.21% | 2.85% | -0.36% |
| Consolidated Edison | 3.58% | 59.16% | 17.40% | 1.47% | 0.09% | 2.53% | 2.79% |
| Dover | 1.02% | 18.22% | 17.71% | 4.84% | 0.29% | 1.33% | 3.42% |
| Ecolab | 0.91% | 32.16% | 34.70% | 8.30% | 0.25% | 5.03% | 8.39% |
| Emerson Electric | 1.61% | 61.03% | 37.72% | 3.43% | 0.09% | 1.40% | 2.31% |
| Exxon Mobil | 3.46% | 47.99% | 14.68% | 1.84% | 0.14% | 2.64% | 4.11% |
| Federal Realty Investment Trust | 3.83% | 124.95% | 32.65% | 3.08% | 0.10% | 1.44% | 3.69% |
| Franklin Resources | 5.64% | 141.22% | 24.40% | 0.91% | 0.04% | -24.71% | 1.18% |
| General Dynamics | 2.12% | 41.22% | 19.84% | 3.14% | 0.17% | 7.54% | 12.00% |
| Genuine Parts | 3.30% | 50.06% | 15.51% | 3.59% | 0.24% | 5.70% | 5.86% |
| Hormel Foods | 3.41% | 76.39% | 22.58% | 2.27% | 0.10% | 7.96% | 4.93% |
| Illinois Tool Works | 2.08% | 48.42% | 23.49% | 23.93% | 1.12% | 8.77% | 12.98% |
| Johnson & Johnson | 3.35% | 79.71% | 24.04% | 5.03% | 0.21% | 5.83% | 6.14% |
| Kimberly-Clark | 3.72% | 62.10% | 16.91% | 34.31% | 2.38% | 3.37% | 3.83% |
| Leggett & Platt | 8.51% | -23.20% | -2.00% | 2.22% | -0.82% | 3.94% | 4.43% |
| Lowe's | 1.72% | 37.18% | 21.71% | -11.08% | -0.48% | 19.29% | 20.25% |
| McCormick & | 2.09% | 55.89% | 27.30% | 3.99% | 0.15% | -5.68% | 1.35% |
| McDonald's | 2.29% | 58.34% | 25.78% | -41.06% | -1.69% | 8.26% | 7.16% |
| Medtronic | 3.37% | 84.54% | 24.67% | 2.18% | 0.09% | 13.50% | 9.60% |
| Nucor | 1.72% | 20.61% | 11.73% | 1.45% | 0.12% | 6.09% | 3.46% |
| PepsiCo | 3.37% | 75.99% | 23.18% | 11.15% | 0.49% | 6.63% | 8.24% |
| Pentair | 0.86% | 22.58% | 26.61% | 5.07% | 0.20% | -3.47% | -0.87% |
| PPG Industries | 2.14% | 41.52% | 19.49% | 3.72% | 0.19% | 6.43% | 0.49% |
| Procter & Gamble | 2.32% | 66.12% | 28.15% | 7.77% | 0.29% | 5.63% | 4.67% |
| Realty Income | 5.65% | 291.48% | 54.78% | 1.25% | 0.02% | 3.00% | 3.46% |
| Sherwin-Williams | 0.78% | 27.33% | 35.72% | 21.98% | 0.68% | -6.79% | 1.92% |
| S&P Global | 0.72% | 32.01% | 44.31% | 4.63% | 0.10% | 12.47% | 12.39% |
| Stanley Black & Decker | 3.80% | -229.58% | -60.66% | 1.46% | -0.02% | 4.53% | 4.98% |
| Sysco | 2.53% | 51.82% | 20.26% | 17.83% | 0.91% | 6.58% | 3.45% |
| T. Rowe Price | 4.15% | 53.90% | 12.67% | 2.59% | 0.21% | 11.75% | 12.37% |
| Target | 3.30% | 46.70% | 14.21% | 4.29% | 0.31% | 11.59% | 10.68% |
| Walgreens Boots Alliance | 11.30% | -14.59% | -0.89% | 0.73% | -0.53% | 2.71% | 4.99% |
| Walmart | 0.88% | 33.23% | 38.50% | 8.60% | 0.23% | 1.85% | 1.95% |
What are Dividend Aristocrats?
Dividend Aristocrats are a select group of companies within the S&P 500 that have consistently increased their dividend payouts for at least 25 consecutive years. These companies are renowned for their financial stability and resilience, making them highly reliable for income-seeking investors. For an even more elite category, companies that have increased dividends for 50 or more years are known as dividend kings.
To achieve Aristocrat status, a company must meet stringent criteria, including consistent dividend growth, a strong balance sheet, and a proven ability to generate steady cash flows. This track record demonstrates the company’s commitment to rewarding shareholders, even during economic downturns.
Why Invest in Dividend Aristocrats?
Dividend Aristocrats offer a compelling investment opportunity for those looking to build a stable, income-generating portfolio. Here are some key reasons why these stocks are worth considering:
- Steady Income:
Dividend Aristocrats have a long history of paying and increasing dividends, making them a reliable source of passive income. - Reduced Volatility:
These companies tend to be large, established market leaders that can weather economic storms, providing a more stable investment during market downturns. - Capital Appreciation
Potential: Many Dividend Aristocrats not only pay dividends but also grow their stock price over time, offering potential for both income and growth. - Inflation Protection:
Consistent dividend increases can help offset inflation, preserving your purchasing power. - Lower Risk:
Due to their financial strength and commitment to dividend growth, Dividend Aristocrats are generally considered lower risk compared to other stocks.
How to Select the Best Dividend Aristocrats
When choosing which Dividend Aristocrats to invest in, it’s essential to evaluate several key financial metrics. These indicators can help you assess the company’s ability to provide steady income and long-term growth potential:
- Dividend Yield:
Look for companies that offer a competitive dividend yield, balancing income generation with the potential for stock price appreciation. A higher yield can be attractive but should be considered in conjunction with other factors. - Payout Ratio:
A lower payout ratio often indicates that a company has ample room to reinvest in its business while still maintaining or growing its dividends. A high payout ratio, on the other hand, could signal limited ability to sustain dividend increases. - Dividend Growth:
Assess both the 5-year and 10-year dividend growth rates to see how consistently a company has been raising its payouts. Steady growth is a good indicator of financial health and commitment to shareholders. If you're specifically looking for stocks with strong, consistent dividend increases, check out our list of dividend growth stocks for further options. - Price-to-Earnings (P/E) Ratio:
This ratio helps you determine whether a stock is fairly valued. A lower P/E ratio can suggest an undervalued company with growth potential, whereas a higher P/E ratio might indicate the stock is overvalued. - Return on Equity (ROE):
A high ROE indicates that a company efficiently generates profits relative to shareholders' equity, which can be a sign of a well-managed business.
By focusing on these metrics, you can identify Dividend Aristocrats that not only provide strong income streams but also have the potential for continued dividend growth and capital appreciation.
Dividend Aristocrats vs. Other Dividend Stocks
While many companies pay dividends, Dividend Aristocrats stand out due to their long track record of increasing dividends for at least 25 consecutive years. This consistency makes them a safer bet for long-term investors compared to regular dividend stocks, which may not have the same stability or commitment to growth.
Aristocrats tend to be large, well-established companies with proven business models, making them less vulnerable to market fluctuations. For investors seeking steady income and lower volatility, Dividend Aristocrats offer more reliability than other dividend-paying stocks.
Risks of Investing in Dividend Aristocrats
Despite their strong reputation, Dividend Aristocrats are not without risks. Economic downturns or industry-specific challenges can lead to slow growth or, in some cases, companies cutting their dividends. High payout ratios may also limit a company's ability to reinvest in growth, potentially affecting future returns.
Additionally, some Dividend Aristocrats may become overvalued, offering lower capital appreciation opportunities. It's important for investors to balance the potential for stable income with the risk of limited growth or dividend cuts.