If you’re after reliable dividend income, dividend aristocrats should be on your radar — they are companies with impressive records of raising payouts for at least 25 years!
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
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 that 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.
NextEra Energy, Inc. (NEE) — NextEra is one of the largest electric power and energy infrastructure companies in North America. It operates Florida Power & Light, the largest electric utility in the U.S., and is active in wind and solar energy generation.
The Florida-based company’s dividend payout ratio is currently 119.70%. NextEra paid $0.57 per share in its last dividend issuance, with a dividend yield of 2.70%. NEE stock currently boasts a Strong Buy consensus rating from 17 Wall Street analysts, with an average price target of $93.06, implying about a 12% upswing from its current trading level.
Walmart Inc. (WMT) — Walmart is an American retail giant that operates a chain of discount, hypermarket, and grocery stores. The company is also a key player in logistics and is popularly known for the e-commerce platform Walmart.com.
The company’s dividend payout ratio is currently 73.68%. Walmart paid $0.23 per share in its last dividend issuance, with a dividend yield of 0.90%. WMT stock presently enjoys a Strong Buy consensus rating from 28 Wall Street analysts, with an average price target of $115.93, suggesting about 13% upside.
Sysco Corporation (SYY) — Sysco is a foodservice distribution company that supplies fresh and frozen foods to restaurants, hospitals, schools, and hotels, among other types of institutions. The company also supplies kitchen equipment and cleaning products, offering its services across North America.
The Texas-based company’s dividend payout ratio is currently 92.92%. Sysco paid $0.54 per share in its last dividend issuance, with a dividend yield of 2.87%. SYY stock currently has a Moderate Buy consensus rating from nine Wall Street analysts, with an average price target of $87.75, suggesting more than 18% 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.