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. In addition, 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.
Which Dividend Aristocrat Stocks Are the Best to Buy?
According to Wall Street analysts, the three stocks listed below are worth buying. 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 a Buy rating based on consensus from top analysts or broader Wall Street agreement, with at least 10% upside potential.
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.
Cintas Corporation (CTAS) — Cintas is an Ohio-based business services provider offering corporate identity uniforms, restroom supplies, safety products, and fire protection, primarily targeting the U.S., Canada, and Latin America.
Cintas’ dividend payout ratio is about 81.77%. The company paid $0.45 per share in its last dividend issuance with a dividend yield of 0.84%. CTAS stock currently has a Moderate Buy consensus rating from 13 Wall Street analysts, with an average price target of $221.80, indicating about 13% upside.
Church & Dwight Co., Inc. (CHD) — Church & Dwight, headquartered in New Jersey, is a major consumer goods business particularly focused on personal care and household products.
Church & Dwight’s dividend payout ratio is currently 77.16%. The company paid $0.29 per share in its last dividend issuance with a dividend yield of 1.33%. CHD stock currently has a Moderate Buy consensus rating from the top four Wall Street analysts covering it, with an average price target of $102.50, suggesting about 17% upside.
The Sherwin-Williams Company (SHW) — Sherwin-Williams is another Ohio-based business that manufactures and sells paints, coatings, and other similar products and is the brain behind brands such as Valspar, Minwax, and Krylon.
Sherwin-Williams’ dividend payout ratio is about 55.63%. The company paid $0.79 per share in its last dividend issuance, with a dividend yield of 0.93%. SHW stock currently holds a Moderate Buy consensus rating from 17 Wall Street analysts, with an average price target of $388.43, suggesting about a 15% 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.