Dividend Growth Stocks: 10 Aristocrats

In this article, we discuss 10 dividend aristocrat stocks. If you want to read our detailed analysis of dividend aristocrats and their performance over the years, go directly to read Dividend Growth Stocks: 25 Aristocrats.

10. Roper Technologies, Inc. (NASDAQ:ROP)

5-Year Annual Dividend Growth Rate: 10.6%

Roper Technologies, Inc. (NASDAQ:ROP) is a Florida-based diversified technology company that operates in various industries and provides specialized products and solutions. The company pays a quarterly dividend of $0.6825 per share, with a dividend yield of 0.55%. It has raised its dividends for 31 years straight and has a 5-year annual dividend growth rate of 10.6%. It is among one of the best dividend aristocrat stocks on our list.

At the end of the first quarter of 2023, 42 hedge funds tracked by Insider Monkey owned stakes in Roper Technologies, Inc. (NASDAQ:ROP), up from 41 in the previous quarter. These stakes have a consolidated value of over $2.57 billion.

9. A. O. Smith Corporation (NYSE:AOS)

5-Year Annual Dividend Growth Rate: 10.8%

A. O. Smith Corporation (NYSE:AOS) is ninth on our list of the best dividend aristocrat stocks with solid dividend growth. The American company specializes in the manufacturing and distribution of water heating equipment and water treatment products.

In the past five years, the company has raised its dividend annually by 10.8% and its overall dividend growth streak came in at 29 years. Moreover, the company has been making regular dividend payments for the past 83 consecutive years. It currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 1.59%, as of July 25.

With a total stake value of $528 million, 28 hedge funds in Insider Monkey’s database owned positions in A. O. Smith Corporation (NYSE:AOS) in Q1 2023. In comparison, 26 hedge funds owned stakes in the company in the previous quarter.

8. NextEra Energy, Inc. (NYSE:NEE)

5-Year Annual Dividend Growth Rate: 11.28%

NextEra Energy, Inc. (NYSE:NEE) is an American clean energy company that operates in the energy generation, transmission, and distribution sectors, with a focus on renewable energy and sustainable practices.

In February 2023, NextEra Energy, Inc. (NYSE:NEE) raised its dividend for the 27th consecutive year. Moreover, it has grown its payouts annually by 11.28% in the past five years, which makes it one of the best dividend aristocrat stocks on our list. The company pays a quarterly dividend of $0.4675 per share and has a dividend yield of 2.48%, reported on July 25.

According to Insider Monkey’s database, 59 hedge funds were bullish on NextEra Energy, Inc. (NYSE:NEE) in Q1 2023. The stakes held by these funds are collectively worth over $1.11 billion.

7. Target Corporation (NYSE:TGT)

5-Year Annual Dividend Growth Rate: 11.7%

An American retail corporation, Target Corporation (NYSE:TGT) holds one of the longest dividend growth streaks in the stock market. The company has raised its payouts each year in the past 52 years, with a 5-year annual dividend growth rate of 11.7%. It currently offers a quarterly dividend of $1.10 per share. Our best dividend aristocrat stock has a dividend yield of 3.25%, as of July 25.

Of the 943 hedge funds tracked by Insider Monkey, 46 funds held stakes in Target Corporation (NYSE:TGT) in Q1 2023, compared with 48 a quarter earlier. The collective value of these stakes is nearly $530 million.

6. T. Rowe Price Group, Inc. (NASDAQ:TROW)

5-Year Annual Dividend Growth Rate: 11.8%

T. Rowe Price Group, Inc. (NASDAQ:TROW) is a Maryland-based investment management company. With a dividend growth track record of 37 years, it is one of the best dividend aristocrat stocks on our list. The company offers a quarterly dividend of $1.22 per share for a dividend yield of 4.04%, as recorded on July 25. In the past five years, it has raised its dividends annually by 11.8%.

At the end of Q1 2023, 21 hedge funds, with a collective stake value of $314 million, owned positions in T. Rowe Price Group, Inc. (NASDAQ:TROW), as per Insider Monkey’s database.

5. S&P Global Inc. (NYSE:SPGI)

5-Year Annual Dividend Growth Rate: 12.51%

S&P Global Inc. (NYSE:SPGI) is an American private banking company that specializes in financial information and analytics. The company’s current quarterly dividend stands at $0.90 per share. It has raised its payouts each year for the last 50 years, with a 5-year annual dividend growth of 12.51%. As of July 25, the stock has a dividend yield of 0.85%.

S&P Global Inc. (NYSE:SPGI) was one of the most popular stocks among hedge funds, with 90 funds in Insider Monkey’s database owning stakes in the company at the end of Q1 2023. These stakes have a consolidated value of over $7.3 billion.

4. Automatic Data Processing, Inc. (NASDAQ:ADP)

5-Year Annual Dividend Growth Rate: 12.59%

Automatic Data Processing, Inc. (NASDAQ:ADP) is a New Jersey-based company that specializes in providing human resources solutions. On April 12, the company declared a quarterly dividend of $1.25 per share, which remained unchanged from its previous dividend. It is one of the best dividend aristocrat stocks on our list, with 48 years of consecutive dividend growth under its belt. As of July 25, the stock offers a dividend yield of 2.09%.

At the end of Q1 2023, 53 hedge funds in Insider Monkey’s database presented a bullish stance on Automatic Data Processing, Inc. (NASDAQ:ADP), up from 49 a quarter earlier. The stakes owned by these money managers have a total value of over $3.7 billion.

3. Abbott Laboratories (NYSE:ABT)

5-Year Annual Dividend Growth Rate: 12.6%

An American multinational healthcare company, Abbott Laboratories (NYSE:ABT) is next on our list of the best dividend aristocrat stocks. The company’s 5-year annual dividend growth rate stands at 12.6%. It also maintains a 51-year track record of consistent dividend growth. The company currently offers a quarterly dividend of $0.51 per share for a dividend yield of 1.78%, as recorded on July 25.

70 hedge funds in Insider Monkey’s database of Q1 2023 owned stakes in Abbott Laboratories (NYSE:ABT), compared with 60 in the previous quarter. The collective value of these stakes stands at over $2.37 billion.

2. Nordson Corporation (NYSE:NDSN)

5-Year Annual Dividend Growth Rate: 13.2%

Nordson Corporation (NYSE:NDSN) is an American multinational adhesive manufacturing company. In 2022, the company stretched its dividend growth streak to 59 years and in the past five years, it has raised its payouts by 13.2%. The company currently pays a quarterly dividend of $0.65 per share and its dividend yield on July 25 came in at 1.06%.

At the end of March 2023, 25 hedge funds owned stakes in Nordson Corporation (NASDAQ:NDSN), the same as in the previous quarter, as per Insider Monkey’s data. These stakes are valued at over $161.4 million collectively.

1. Lowe’s Companies, Inc. (NYSE:LOW)

5-Year Annual Dividend Growth Rate: 16.9%

Lowe’s Companies, Inc. (NYSE:LOW) tops our list of the best dividend aristocrat stocks with a 5-year annual dividend growth rate of 16.9%. The company’s overall dividend growth streak stands at 59 years. It currently pays a quarterly dividend of $1.10 per share for a dividend yield of 1.88%, as recorded on July 25.

As of the close of the first quarter of 2023, 67 hedge funds owned stakes in Lowe’s Companies, Inc. (NYSE:LOW), according to Insider Monkey’s database. Their collective stake value is over $5 billion.

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