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.
Automatic Data Processing, Inc. (ADP) — Automatic Data Processing is a long-standing provider of human capital management solutions known for its payroll processing, HR software, and tax administration services that cater to businesses of all sizes.
The New Jersey-based business’s dividend payout ratio is about 138.59%. The company paid $1.54 per share in its last dividend issuance, with a dividend yield of 2.17%. ADP stock currently holds a Moderate Buy consensus rating from the six top Wall Street analysts covering it, with an average price target of $318.50, pointing to more than 11% upside potential.
The Procter & Gamble Company (PG) — Procter & Gamble is a global consumer goods powerhouse known for iconic brands such as baby care product Pampers, laundry detergent Tide, and shaving tool Gillette, among others.
The Ohio-based company’s dividend payout ratio is about 128.47%. The company paid $0.91 per share in its last dividend issuance with a dividend yield of 2.72%. PG stock currently has a Moderate Buy consensus rating from 12 Wall Street analysts, with an average price target of $169.36, indicating about 11% possible upswing.
Cincinnati Financial Corporation (CINF) — Cincinnati is a business focused primarily on providing property, casualty and life insurance services, with secondary interest in asset management.
The Ohio-based firm’s dividend payout ratio is currently 108.74%. The company paid $0.87 per share in its last dividend issuance with a dividend yield of 2.19%. CINF stock currently has a Moderate Buy consensus rating from eight Wall Street analysts, with an average price target of $170.50, suggesting approximately 10% 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, including their most recent dividend yields, previous dividend amounts, payout ratios, and other details.