Earning regular dividend income is a crucial part of the investment journey. But what is even more important is identifying dividend aristocrats — companies that have raised their dividends for at least 25 consecutive years!
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What are Dividend Aristocrats?
Dividend Aristocrats are companies listed on the S&P 500 index, which tracks the largest 500 publicly traded American companies. However, analysts sometimes consider new companies spun off from older institutions to be dividend aristocrats, as they are seen as having inherited their former parent companies’ long histories 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 strong dividend track records. Each stock has a dividend payout ratio of at least 50%, meaning 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 the 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.
Exxon Mobil Corporation (XOM) — ExxonMobil is the largest oil and gas company in the U.S. based on revenue, production volume, and market capitalization.
ExxonMobil’s dividend payout ratio currently stands at 130.81%. The company paid $0.85 per share in its last dividend issuance with a dividend yield of 3.55%. XOM stock currently has an average price target of $130.40 from the top 11 Wall Street analysts covering the stock, with about 16.00% upside.
McDonald’s Corporation (MCD) — McDonald’s is the world’s largest quick-service restaurant chain, known for its burgers, the Big Mac, and bite-sized fried chicken McNuggets.
McDonald’s dividend payout ratio is about 122.27%. The company paid $1.77 per share in its last dividend issuance with a dividend yield of 2.32%. MCD stock currently has an average price target of $342 from the top 17 Wall Street analysts that recently rated the stock, with approximately 12% upside potential.
Sysco Corporation (SYY) — Sysco is a Houston-based foodservice distribution enterprise that supplies bulk food, kitchen equipment, and logistics to restaurants, healthcare, and education sectors.
Sysco’s dividend payout ratio is about 94.17%. The company paid $0.54 per share in its last dividend issuance with a dividend yield of 2.62%. SYY stock currently has an average price target of $88.63 from eight Wall Street analysts, with about an 11% upswing 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, including their most recent dividend yields, previous dividend amounts, payout ratios, and other details.