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.
Federal Realty Investment Trust (FRT) — Federal Realty is a Maryland-based real estate investment trust (REIT) that specializes in retail and mixed-use properties across urban and suburban markets in the U.S. Its portfolio includes shopping centers, retail spaces, and residential units.
The trust’s dividend payout ratio is currently 224.30%. Federal Realty paid $1.13 per share in its last dividend issuance, with a dividend yield of 4.39%. FRT stock currently has a Moderate Buy consensus rating from 14 Wall Street analysts, with an average price target of $109.19, implying more than 11% growth potential.
Chevron Corporation (CVX) — Chevron is a California-based global energy company that runs oil and gas exploration and production, refining, and marketing activities. It also operates the fuel brand Texaco.
The company’s dividend payout ratio is currently 162.28%. Chevron paid $1.71 per share in its last dividend issuance, with a dividend yield of 4.35%. CVX stock currently has a Moderate Buy consensus rating from 16 Wall Street analysts, with an average price target of $171.27, indicating about 11% upside potential.
Hormel Foods Corporation (HRL) — Hormel Foods is a Minnesota-based food processing business best known for brands such as canned cooked meat SPAM, Skippy peanut butter, and Applegate natural and organic meat.
The company’s dividend payout ratio is currently 157.82%. Hormel Foods paid $0.29 per share in its last dividend issuance, with a dividend yield of 4.89%. HRL stock presently holds a Moderate Buy consensus rating from five Wall Street analysts, with an average price target of $29.60, suggesting almost 25% 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.