5 Companies Likely to be Dividend Aristocrats in the Future

In this article, we discuss 5 companies likely to be Dividend Aristocrats in the future. If you want to read our detailed analysis of dividend growers and their performance, go directly to read 10 Companies Likely to be Dividend Aristocrats in the Future. 

5. The Clorox Company (NYSE:CLX)

Consecutive Years of Dividend Growth: 20

The Clorox Company (NYSE:CLX) is a California-based company that manufactures and markets consumer and professional products. The company offers a quarterly dividend of $1.18 per share and has a dividend yield of 3.02%, as of June 21. It is one of the best dividend aristocrat stocks to be as it maintains a 20-year streak of dividend growth.

In fiscal Q3 2023, The Clorox Company (NYSE:CLX) posted revenue of roughly $2 billion, which showed a 5.8% growth from the same period last year. Year-to-date, the company generated an operating cash flow of $728 million, up from $451 million in the prior-year period.

At the end of Q1 2023, 38 hedge funds owned stakes in The Clorox Company (NYSE:CLX), compared with 34 in the previous quarter, as per Insider Monkey’s database. These stakes are collectively worth over $684 million. Among these hedge funds, Palestra Capital Management was the company’s leading stakeholder in Q1.

4. QUALCOMM Incorporated (NASDAQ:QCOM)

Consecutive Years of Dividend Growth: 20

QUALCOMM Incorporated (NASDAQ:QCOM) is another future’s best dividend aristocrat stock. The American tech company has been raising its dividends for 20 years running and currently pays a quarterly dividend of $0.80 per share. The stock’s dividend yield on June 21 came in at 2.73%.

In June, BofA raised its price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $145 and maintained an Outperform rating on the shares, appreciating the company’s overall performance.

According to Insider Monkey’s database for Q1 2023, 69 hedge funds tracked by Insider Monkey held stakes in QUALCOMM Incorporated (NASDAQ:QCOM), worth collectively over $1.74 billion.

3. NIKE, Inc. (NYSE:NKE)

Consecutive Years of Dividend Growth: 21

NIKE, Inc. (NYSE:NKE) is an American manufacturing company that produces footwear, apparel, and other related accessories. In fiscal Q3 2023, the company posted revenue of $12.4 billion, which showed a 14% year-over-year growth. During the quarter, the company paid $528 million to shareholders in dividends.

NIKE, Inc. (NYSE:NKE), one of the future’s dividend aristocrat stocks, currently pays a quarterly dividend of $0.34 per share. The company has raised its payouts for 21 years in a row. The stock has a dividend yield of 1.24%, as recorded on June 21.

NIKE, Inc. (NYSE:NKE) was a popular stock among hedge funds in Q1 2023, as 81 funds in Insider Monkey’s database owned stakes in the stock, up from 71 in the previous quarter. These stakes have a total value of over $2.35 billion.

2. United Parcel Service, Inc. (NYSE:UPS)

Consecutive Years of Dividend Growth: 21

United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping company. On May 3, the company declared a quarterly dividend of $1.62 per share, which was in line with its previous dividend. The stock has a dividend yield of 3.73%, as of June 21. The company maintains a 21-year streak of dividend growth.

In May, Deutsche Bank appreciated the management of United Parcel Service, Inc. (NYSE:UPS) and its efforts to prioritize profitable growth. In view of this, the firm raised its price target on the stock to $212 with a Buy rating on the shares.

At the end of Q1 2023, 39 hedge funds in Insider Monkey’s database held stakes in United Parcel Service, Inc. (NYSE:UPS), up from 36 in the previous quarter. The consolidated value of these stakes is over $476 million.

1. The Southern Company (NYSE:SO)

Consecutive Years of Dividend Growth: 22

The Southern Company (NYSE:SO) is a Georgia-based electric power distribution company that also provides clean, safe, and reliable energy services to its consumers. It tops our list of the best dividend aristocrat stocks of the future with a 22-year streak of dividend growth. The company currently pays a quarterly dividend of $0.70 per share for a dividend yield of 3.92%, as of June 21.

As per Insider Monkey’s database for Q1 2023, 25 hedge funds owned stakes in The Southern Company (NYSE:SO), worth collectively over $440 million.

You can also take a look at 20 Worst Performing S&P 500 Stocks in 2023 and 10 Tech Stocks Benefiting From The AI Boom

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