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.
Emerson Electric Company (EMR) — Emerson is a global technology and engineering firm that offers industrial automation systems, climate control technologies, and production management solutions.
The Missouri-based firm’s dividend payout ratio is currently about 104.05%. The company paid $0.53 per share in its last dividend issuance, with a dividend yield of 1.62%. EMR stock currently has a Moderate Buy consensus rating from 14 Wall Street analysts, with an average price target of $148.42, suggesting about 11% upside potential.
PPG Industries, Inc. (PPG) — PPG is a major supplier of decorative paints, industrial coatings, and specialty materials that runs brands such as PPG Paints, Glidden, and Olympic.
The Pennsylvania-based company’s dividend payout ratio is currently about 99.10%. The company paid $0.71 per share in its last dividend issuance, with a dividend yield of 2.69%. PPG stock currently has a Moderate Buy consensus rating from 14 Wall Street analysts, with an average price target of $125.62, pointing to more than 21% growth potential.
Nucor Corporation (NUE) — Nucor is the biggest steel producer in the U.S. and is also the largest recycler of scrap metal in North America.
The North Carolina-based business’s dividend payout ratio is currently about 95.86%. The company paid $0.55 per share in its last dividend issuance, with a dividend yield of 1.61%. NUE stock currently holds a Strong Buy consensus rating from 11 Wall Street analysts, with an average price target of $161.90, suggesting nearly 17% upside.
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.