Earning regular dividend income is a crucial part of the investment journey. But what is even more important is identifying dividend aristocrat stocks — companies that have raised their dividend for at least 25 consecutive years!
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What are Dividend Aristocrats?
Dividend Aristocrats refer to companies that are listed on the benchmark S&P 500 index, which tracks the largest 500 publicly traded American companies. However, analysts sometimes consider new companies spun off from older institutions as dividend aristocrats, as they are seen as having inherited their former parent companies’ long history of dividend payments.
So, What Are the Best Dividend Aristocrat Stocks to Buy?
According to Wall Street analysts, the three stocks listed below are worth buying based on their past strong dividend deliveries. Each stock holds a dividend payout ratio of at least 50%, which means that each company distributes at least half of its net earnings to shareholders as dividends.
Furthermore, each company currently has at least a Buy rating from either the top analysts covering the stock or from overall Wall Street consensus. They also hold, at minimum, an upside potential of 10%.
Be sure to click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio. Here are today’s top dividend aristocrat stock picks from TipRanks.
The Coca-Cola Company (KO) — Coca-Cola is one of the world’s most iconic and largest beverage companies popular for its non-alcoholic drinks such as Coca-Cola, Diet Coke, Sprite, and Fanta.
Coca-Cola’s dividend payout ratio currently stands at 223.49%. The company paid $0.51 per share in its last dividend issuance with a dividend yield of 3.00%. KO stock currently has an average price target of $79.08 from 14 Wall Street analysts, with a 17.00% upside.
AbbVie Inc. (ABBV) — AbbVie is a major American pharmaceutical company based in Illinois and best known for Humira, one of the best-selling drugs in history, used to treat conditions such as rheumatoid arthritis and psoriasis, in which the body’s immune system mistakenly attacks its own healthy tissues.
AbbVie’s dividend payout ratio is about 187.09%. The company paid $1.64 per share in its last dividend issuance with a dividend yield of 2.89%. ABBV stock currently has an average price target of $248.55 from the 12 top Wall Street analysts covering the stock, with approximately 10% upswing potential.
Colgate-Palmolive Company (CL) — Colgate-Palmolive is a consumer goods giant renowned for its oral care products, especially Colgate toothpaste, one of the most widely used brands worldwide.
Colgate-Palmolive’s dividend payout ratio is about 169.70%. The company paid $0.52 per share in its last dividend issuance with a dividend yield of 2.60%. CL stock currently has an average price target of $90.93 from 15 Wall Street analysts, with about 16% growth potential.
Interested in More Dividend Aristocrat Stocks?
To find more stocks like these, take a look at TipRanks’ Dividend Aristocrats tool.
The page provides an exhaustive list of all dividend aristocrats, their last dividend yields, the last dividends they paid, and their payout ratios, among other details.