Dividend Kings and Aristocrats List: 10 Biggest Stocks

In this article, we will discuss 10 biggest dividend kings and dividend aristocrats. If you want to read our detailed analysis of dividend stocks and their returns in the past, go directly to read Dividend Kings and Aristocrats List: 50 Biggest Stocks. 

10. Abbott Laboratories (NYSE:ABT)

Market Cap as of January 28: $191.7 billion 

Abbott Laboratories (NYSE:ABT) is an American multinational medical device and healthcare company that offers innovative health solutions for its patients. In January, Barclays raised its price target on the stock to $125 with an Overweight rating on the shares, appreciating the company’s sequential improvements in medical device growth.

On December 9, Abbott Laboratories (NYSE:ABT) declared an 8.5% hike in its quarterly dividend to $0.51 per share. This was the company’s 51st consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on January 28 came in at 1.86%.

At the end of September, 62 hedge funds tracked by Insider Monkey reported having stakes in Abbott Laboratories (NYSE:ABT), up from 61 in the previous quarter. The collective value of these stakes is over $3 billion. With over 9 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.

Stewart Asset Management mentioned Abbott Laboratories (NYSE:ABT) in its Q3 2022 investor letter. Here is what the firm has to say:

“We also need to point out one global consequence of the rapid rise in interest rates: an irrepressibly strong dollar. This hurts the reported earnings of U.S. companies who sell their goods and services overseas. Foreign currency earnings translate into fewer dollars and thus lower earnings. Most of the companies in your portfolios gain a notable amount of earnings from their international operations. While the strength or weakness of a currency doesn’t change the quality of a business or its longer-term earnings power, it can change the reported earnings of a company over short periods of time. It is difficult to forecast this effect accurately because many of our companies manufacture where they sell, which to some extent dulls the sharp negative effect of a surging dollar. Abbott (NYSE:ABT), among others, is a good example.”

9. McDonald’s Corporation (NYSE:MCD)

Market Cap as of January 28: $199.5 billion 

McDonald’s Corporation (NYSE:MCD) is an American multinational fast-food chain The company maintains a 46-year track record of consistent dividend growth, which places it as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $1.52 per share for a dividend yield of 2.23%, as of January 28.

Credit Suisse raised its price target on McDonald’s Corporation (NYSE:MCD) to $298 with an Outperform rating on the shares. The firm appreciated the company’s strength during the fourth quarter.

At the end of Q3 2022, 53 hedge funds tracked by Insider Monkey owned stakes in McDonald’s Corporation (NYSE:MCD), compared with 50 in the previous quarter. The collective value of these stakes is $1.8 billion.

8. PepsiCo, Inc. (NASDAQ:PEP)

Market Cap as of January 28: $233.6 billion 

Another best dividend stock on our list is PepsiCo, Inc. (NASDAQ:PEP), which is a multinational food, snack, and beverage company. In the third quarter of 2022, the company reported revenue of nearly $22 billion, which shows an 8.8% growth from the same period last year. At the end of September 2022, it had over $6.4 billion in cash and cash equivalents, up from $5.6 billion at the end of December 2021.

PepsiCo, Inc. (NASDAQ:PEP) currently pays a quarterly dividend of $1.15 per share and has a dividend yield of 2.71%, as of January 28. The company has raised its dividends for 50 years in a row, achieving its Dividend King status in 2022.

In December, Atlantic Equities raised its price target on PepsiCo, Inc. (NASDAQ:PEP) to $210 with an Overweight rating on the shares.

PepsiCo, Inc. (NASDAQ:PEP) was a part of 72 hedge fund portfolios in the third quarter of 2022, compared with 65 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is $4.8 billion.

Lindsell Train mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q3 2022 investor letter. Here is what the firm has to say:

“At this point, it may help to give a further example of these self-reinforcing moats to illustrate the idea, drawing from the consumer franchises side of our portfolio. In our view, strong consumer brands can similarly exhibit Lindycompatible anti-ageing properties. Consider, that the longer a company invests in its brands through advertising and R&D, the stronger and more resonant they may get. When successful, a self-sustaining feedback loop is established, whereby it becomes ever harder to recreate a heritage-rich brand from scratch, raising barriers to entry, and proportionately increasing its likely lifespan. There are plenty of long-lived portfolio franchises I could reference here, but I’ve gone with PepsiCo (NYSE:PEP); partly because we have good time-series stats on it (beware data bias!) but also, as I hope will become evident, because Pepsi over its 129 years has succeeded in creating some wonderfully deep moats.

With Pepsi Cola you get the flagship soft drinks brand, which is both global and generational, but you also get the Frito-Lay salty snacks portfolio assembled alongside it, claiming nearly 40% of the global market. That’s ten-times greater than the nearest competitor and likely higher than the next 65 competitors combined. These are exceptionally strong global bands with market shares to match; the long-term empirical result being Pepsi’s dividend record which over the past 66 years (as far back as we’ve been able to go) has compounded at an annualised rate of 10%. Pepsi is no ‘in at the ground floor’ start-up today, but it wasn’t six decades ago either. Early growth investor Philip Fisher put it well when in 1958 (two years into Pepsi’s current winning streak) he wrote of “companies which in spite of outstanding prospects of major further growth are so financially strong, with roots going so deep into the economic soil, that they qualify under the general classification of ‘institutional stocks’”. PepsiCo fits this description well…” (Click here to see the full text)

7. AbbVie Inc. (NYSE:ABBV)

Market Cap as of January 28: $258.6 billion 

An American biotech company, AbbVie Inc. (NYSE:ABBV) is another best dividend stock on our list. In January, JPMorgan raised its price target on the stock to $190 with an Overweight rating on the shares. The firm appreciated the company’s overall performance and sees an increasingly ‘attractive setup’ for it.

AbbVie Inc. (NYSE:ABBV) currently pays a quarterly dividend of $1.48 per share, having raised it by 5% in October 2022. The company has raised its dividends for 50 years in a row. As of January 28, the stock has a dividend yield of 4.05%.

Of the 895 hedge funds tracked by Insider Monkey, 71 funds reported owning stakes in AbbVie Inc. (NYSE:ABBV) in Q2 2022, compared with 75 in the preceding quarter. These stakes are collectively worth over $2.88 billion. Arrowstreet Capital was one of the company’s leading stakeholders in Q3.

Baron Funds mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter. Here is what the firm has to say:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

6. The Coca-Cola Company (NYSE:KO)

Market Cap as of January 28: $261.5 billion 

The Coca-Cola Company (NYSE:KO) is a Georgia-based multinational beverage company that has operations in over 200 countries and territories. The company holds one of the longest dividend growth streaks of 60 years. It offers a per-share dividend of $0.44 every quarter and has a dividend yield of 2.91%, as of January 28.

Appreciating the company’s strong execution and ongoing investments, Atlantic Equities raised its price target on The Coca-Cola Company (NYSE:KO) to $69 in December, with an Overweight rating on the shares.

Warren Buffett’s Berkshire Hathaway was the leading stakeholder of The Coca-Cola Company (NYSE:KO) in Q3 2022. Overall, 59 hedge funds in Insider Monkey’s database owned investments in the company in Q3, worth over $25 billion.

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”

5. The Procter & Gamble Company (NYSE:PG)

Market Cap as of January 28: $331.6 billion 

The Procter & Gamble Company (NYSE:PG) is one of the world’s largest manufacturers of consumer and household products. In fiscal Q2 2023, the company reported revenue of $20.8 billion, which beat Street estimates by $50 million. Its operating cash flow was $3.6 billion and its free cash flow productivity was 72%. Moreover, it returned $2.2 billion to shareholders in dividends, which makes it one of the best dividend stocks on our list.

In January, Stifel raised its price target on The Procter & Gamble Company (NYSE:PG) to $147 with a Hold rating on the shares, highlighting the company’s recent quarterly earnings.

On January 10, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, which fell in line with its previous dividend. The company has been boosting its dividends consistently for the past 66 years, which makes it one of the best dividend stocks on our list.

As of the close of Q3 2022, 69 hedge funds tracked by Insider Monkey reported owning stakes in The Procter & Gamble Company (NYSE:PG), down from 71 in the previous quarter. The collective value of these stakes is over $4.08 billion.

Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”

4. Chevron Corporation (NYSE:CVX)

Market Cap as of January 28: $347 billion 

Chevron Corporation (NYSE:CVX) is a multinational energy company, based in California, US. The company specializes in the exploration of natural gas and oil. In the fourth quarter of 2022, the company posted revenue of $56.4 billion, up 17.3 billion from the same period last year. Its annual operating cash flow came in at $49.6 billion and its free cash flow stood at $37.6 billion.

On January 25, Chevron Corporation (NYSE:CVX) announced a quarterly dividend of $1.51 per share, raising it by 6.3% from its previous dividend. Through this increase, the company achieved its 36th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on January 28 came in at 3.37%.

The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion.

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

3. Walmart Inc. (NYSE:WMT)

Market Cap as of January 28: $386 billion

Walmart Inc. (NYSE:WMT) is an American multinational retailer that operates grocery stores, supermarkets, and a chain of departmental stores. Tigress Financial upgraded the stock to Buy in January, with a $176 price target, up from $170. The firm appreciated the company’s expansion, higher-margin growth business, and ongoing dividend increases.

Walmart Inc. (NYSE:WMT) has been rewarding shareholders with increased dividends for the past 49 years. It currently pays a quarterly dividend of $0.56 per share and has a dividend yield of 1.56%, as of January 28.

In the third quarter of 2022, Walmart Inc. (NYSE:WMT) reported an 8.8% year-over-year growth in its revenue at $152.8 billion. The company’s shareholder return amounted to $1.5 billion during the first nine months of 2022.

As of the end of Q3 2022, 68 hedge funds tracked by Insider Monkey were bullish on Walmart Inc. (NYSE:WMT), compared with 67 in the previous quarter. The collective value of stakes owned by these hedge funds is over $4.08 billion.

Leaven Partners mentioned Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter. Here is what the firm has to say:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

2. Johnson & Johnson (NYSE:JNJ)

Market Cap as of January 28: $439.8 billion

Another Dividend King on our list is Johnson & Johnson (NYSE:JNJ), which has been raising its dividends for the past 60 years. The multinational pharmaceutical company reported mixed earnings in its Q4 2022. Its revenue for the quarter came in at $23.7 billion, which fell by 4.4% from the same period last year. However, the company revenue showed a 1.3% year-over-year for FY22 at roughly $95 billion.

Johnson & Johnson (NYSE:JNJ) pays a quarterly dividend of $1.13 per share and has a dividend yield of 2.69%, as of January 28.

Citigroup presented a positive outlook on the company’s sales and its performance in the past year and raised its price target on Johnson & Johnson (NYSE:JNJ) in December to $205 with a Buy rating on the shares.

At the end of Q3 2022, 85 hedge funds in Insider Monkey’s database owned stakes in Johnson & Johnson (NYSE:JNJ), up from 83 in the previous quarter. The collective value of these stakes is over $5.4 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q3.

Here’s what Distillate Capital Partners LLC said about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

1. Exxon Mobil Corporation (NYSE:XOM)

Market Cap as of January 28: $476.1 billion

Exxon Mobil Corporation (NYSE:XOM) specializes in the distribution of oil and natural gas and is based in Texas, US. In January, Scotiabank upgraded the stock to Outperform with a $135 price target, up from $120. The firm expects an improvement in the company’s free cash flow generation from its refining sector.

Exxon Mobil Corporation (NYSE:XOM) has been raising its dividends consistently for the past 40 years, which makes it one of the best dividend stocks on our list. The company pays a quarterly dividend of $0.91 per share for a dividend yield of 3.15%, as of January 28.

As of the close of Q3 2022, 75 hedge funds tracked by Insider Monkey owned stakes in Exxon Mobil Corporation (NYSE:XOM), up from 72 in the previous quarter. The collective value of these stakes is $5.5 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.

You can also take a look at 12 Best S&P 500 Dividend Stocks To Buy and 12 Cheap Biotech Stocks To Buy

Follow Insider Monkey on Twitter