In this article, we will take a look at some of the best dividend aristocrat stocks to buy now.
Dividend Aristocrats are companies that have consistently increased their dividend payments for at least 25 consecutive years. While they are an integral part of the broader market, they have been overshadowed recently by the surge in technology stocks. In 2024, the Dividend Aristocrats Index rose by about 6%, trailing the broader market’s nearly 27% gain and NASDAQ’s impressive 35% return. However, the long-term appeal of dividend stocks remains strong. These companies have proved their mettle, continuing to reward shareholders even during challenging market conditions.
Historical data underscores the effectiveness of dividends in keeping pace with inflation and cushioning the effects of economic downturns over the past century. This makes them a crucial element of long-term investment strategies. Dividend payouts have remained relatively stable compared to earnings per share across multiple recessions. For instance, during the 2007–2009 global financial crisis, while the broader market dropped by 41% and earnings per share plunged by 92%, dividends per share declined by just 6%, according to a report by The Vanguard Group. This stability plays a key role in preserving income streams and enhancing total returns, which factor in both price appreciation and reinvested dividends.
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The report also emphasized the importance of diversifying investments across different sectors and regions to safeguard against industry-specific downturns and geopolitical uncertainties. A clear example of this occurred during the initial COVID-19 lockdowns in 2020 when European banks, following regulatory directives, suspended dividend payments to account for potential loan losses. Although many banks were financially capable of maintaining payouts, most distributions were delayed until 2021, disrupting investors’ regular income. Adopting a diversified investment strategy not only helps stabilize cash flow but also strengthens overall returns, making portfolios more resilient to economic volatility.
That said, a company’s history of annual dividend increases, no matter how long, does not guarantee future payouts. The year 2020 served as a significant test of the stability of Dividend Aristocrats. When the pandemic hit in March, consumer demand plummeted across various industries, leading many companies to reduce or suspend their dividends. Some made this decision voluntarily, while others were required to do so as a condition of accepting stimulus funds. By the end of 2020, a total of 66 companies within the broader market had distributed less in dividends compared to 2019.
In recent years, dividend investing has gained popularity, particularly during periods of heightened market volatility. Investors have increasingly recognized the value of dividend stocks, steadily allocating capital to them to benefit from their long-term potential. Annual dividend payouts from the broader market have been rising, climbing from $420 billion in 2017 to $522 billion in 2021 and reaching a record $588.2 billion by 2023. This upward trend highlights the role of dividend stocks in generating both growth and income over time. In addition, dividends have been a significant driver of overall market returns, accounting for approximately 17% of the total return from 2013 to 2022, according to a Morgan Stanley report. Given this, we will take a look at some of the best dividend aristocrat stocks to invest in.
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Our Methodology
Dividend aristocrats are the companies that have increased their dividends consistently over the past 25 consecutive years. We scanned Insider Monkey’s database of over 1,000 hedge funds and picked the top 10 dividend aristocrats, which means the stocks mentioned in this list are the most popular dividend aristocrats among the elite hedge funds in America. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 74
The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based paint and coating manufacturing company. The company is structured around three primary divisions: the Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. Lately, it has prioritized growth by making strategic investments and optimizing pricing strategies. Its success is driven by improved operational efficiency, enhanced customer service, and technological advancements across both retail and industrial sectors. In the past 12 months, the stock has surged by 7%.
In the fourth quarter of 2024, The Sherwin-Williams Company (NYSE:SHW) reported revenue of $5.3 billion, which showed a modest 1% growth from the same period last year. The company’s Paint Stores Group saw net sales climb 3.4% to $3.04 billion, driven by price adjustments and increased demand for new residential construction and repainting projects. Segment profit grew 6.9% to $606.4 million, supported by strategic pricing initiatives. The management expects diluted net income per share to range between $10.70 and $11.10 in 2025, with adjusted EPS projected between $11.65 and $12.05. While recognizing possible demand challenges, the company remains optimistic, focusing on expanding market share and leveraging technology to support growth.
The Sherwin-Williams Company (NYSE:SHW)’s cash position remained strong during FY24, generating net operating cash of $3.15 billion. The company also returned $2.46 billion to shareholders through dividends and share repurchases. On February 19, the company declared a 10.5% hike in its quarterly dividend to $0.79 per share. This marked the company’s 46th consecutive year of dividend growth, which makes it one of the best dividend aristocrat stocks. The stock has a dividend yield of 0.92%, as of February 23.
9. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
The Procter & Gamble Company (NYSE:PG) is an American consumer goods company that offers a broad range of products across various categories, including beauty, grooming, oral care, personal care, fabric and home care, baby and feminine products, and family care. Rather than focusing on creating new brands, the company’s strategy revolves around strengthening its existing ones through continuous product improvements and effective marketing. This approach drives volume growth while allowing for gradual price increases. Even during economic downturns, P&G delivers strong performance, as demand for everyday essentials remains stable compared to more discretionary spending.
In the past 12 months, The Procter & Gamble Company (NYSE:PG) has surged by nearly 6%. The company released its fiscal Q2 2025 earnings, reporting $21.9 billion in revenue—a 2% increase from the previous year—surpassing analysts’ estimates by over $291 million. Organic sales, which exclude currency fluctuations, divestitures, and acquisitions, grew by 3%. Despite pausing price hikes, the company successfully drove volume growth, which is often seen as a more sustainable driver of long-term revenue. Organic volume increased by 2%, while pricing remained steady. The baby, feminine, and family care segment performed particularly well, with both organic volume and sales rising by 4%.
The Procter & Gamble Company (NYSE:PG) currently pays a quarterly dividend of $1.0065 per share for a dividend yield of 2.37%, as of February 23. The company has a long track record of dividend growth, increasing its payouts for 68 consecutive years. This achievement is supported by the company’s strong cash position. In the latest quarter, it generated $4.8 billion in operating cash flow, with a free cash flow productivity rate of 84%. In addition, the company distributed $2.4 billion to shareholders through dividends.
8. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 81
NextEra Energy, Inc. (NYSE:NEE) ranks eighth on our list of the best dividend aristocrat stocks. The American renewable energy company that generates, transmits, and sells electricity. The stock has climbed more than 26% over the past year. In Q4 2024, the company’s adjusted earnings per share (EPS) grew by around 2% year-over-year, while its full-year EPS rose 8.2%. Looking ahead, NextEra targets adjusted EPS growth of 6% to 8% through 2027, expecting to reach the upper end of this range in 2024.
Headquartered in Florida, NextEra Energy, Inc. (NYSE:NEE) operates Florida Power & Light, the nation’s largest electric utility. It also leads globally in wind and solar energy generation. Management anticipates US power demand will increase by approximately 55% between 2020 and 2040. In 2024, the company expanded its generation and storage capacity by about 12 gigawatts and currently holds a 25-gigawatt backlog.
On February 14, NextEra Energy, Inc. (NYSE:NEE) announced a 14% increase in its quarterly dividend to $0.5665 per share, marking its 29th consecutive year of dividend growth. As of February 23, the stock offers a dividend yield of 3.17%. This consistent dividend growth is backed by strong cash flow, with the company generating over $13.2 billion in operating cash flow in fiscal 2024. Looking ahead, NextEra plans to raise its dividend per share by roughly 10% annually through at least 2026, using its 2024 payout as the baseline.
At the end of Q4 2024, 81 hedge funds tracked by Insider Monkey held stakes in NextEra Energy, Inc. (NYSE:NEE), growing significantly from 69 in the previous quarter. The collective value of these stakes is over $3.1 billion.
7. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. In Q4 2024, the company reported revenue of $11.5 billion, reflecting a 6.5% increase from the prior year. Organic revenue grew by 14%, driven by a 9% rise in price/mix and a 5% increase in concentrate sales. Throughout the year, the company expanded its market share across its beverage portfolio, with Coca-Cola Zero Sugar standing out, posting a 13% increase in unit volume during the fourth quarter. The company’s innovative marketing strategies have driven strong performance, contributing to approximately $40 billion in retail sales growth for its flagship brand over the past three years.
The Coca-Cola Company’s (NYSE:KO) strong organic revenue growth, margin expansion, and steady EPS gains in a difficult market underscore its operational strength. Despite industry challenges such as concerns over GLP-1 weight loss drugs, tariffs, foreign exchange pressures, and inflation, Coca-Cola has effectively managed these obstacles, further solidifying its position as a top-tier performer in the sector. The stock is up by over 15% since the start of 2025.
In the latest quarter, The Coca-Cola Company (NYSE:KO) demonstrated strong cash flow, producing $2.9 billion from operations and $1.6 billion in free cash flow. It also sustained a healthy adjusted operating margin of 30.7%, reflecting solid profitability. With a remarkable history of increasing dividends for more than 62 consecutive years, the company continues to be a top choice for income-focused investors. The company’s quarterly dividend comes in at $0.485 per share for a dividend yield of 2.86%, as of February 23.
6. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is an American energy company that is engaged in different aspects of the oil and gas industry. Since the start of 2025, the stock has surged by nearly 7%. The company recently unveiled a collaboration aimed at developing scalable energy solutions by integrating natural gas turbines with carbon capture and storage technology to meet the increasing power demands of US data centers. In addition, it successfully initiated gas production at the Sanha Lean Gas Connection project, ensuring a steady natural gas supply for the Angola Liquefied Natural Gas facility.
In the fourth quarter of 2024, Chevron Corporation (NYSE:CVX) reported earnings of $2.06 per share, missing analyst expectations due to weaker margins, which resulted in its refining segment posting a loss for the first time since 2020. Despite this, revenue for the quarter reached $52.23 billion, showing a 10.7% year-over-year increase and exceeding Wall Street forecasts by more than $3.8 billion. This growth was fueled by a 7% rise in global production and a 19% increase in US output, both reaching record levels for the year. Additionally, the company generated nearly $8 billion from asset sales and maintained a strong financial position, ending the year with a net debt ratio of 10%.
Chevron Corporation (NYSE:CVX) also remained financially robust, producing $31.5 billion in operating cash flow and $15 billion in free cash flow for FY24. The company returned nearly $12 billion to shareholders through dividend payments and repurchased more than $15 billion worth of its own shares, continuing its long-standing buyback strategy, which it has executed in 17 of the last 21 years. Chevron currently distributes a quarterly dividend of $1.71 per share, following a 4.9% increase in January—marking its 38th consecutive year of dividend growth. As of February 23, the stock has a dividend yield of 4.36%.
5. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 85
An American multinational biopharmaceutical company, AbbVie Inc. (NYSE:ABBV) ranks fifth on our list of the best dividend aristocrat stocks. The company reported fourth-quarter revenue of $15.1 billion, reflecting a 5.6% year-over-year increase and exceeding analysts’ estimates of $14.87 billion. On a GAAP basis, the company recorded a net loss of $0.02 per share for the quarter. However, adjusted diluted earnings per share (EPS) stood at $2.16, slightly surpassing the expected $2.13. For 2024, combined sales of Skyrizi and Rinvoq reached $17.7 billion, representing a 51% year-over-year growth, driven by increasing global demand and continued market expansion. Excluding Humira, AbbVie’s total revenue rose 18% from the previous year, supported by strong results in its neuroscience and oncology divisions.
In the past 12 months, AbbVie Inc. (NYSE:ABBV) has surged by over 13%. It is a leading pharmaceutical company with a diverse portfolio spanning immunology, oncology, neuroscience, and eye care. The company also commercializes popular aesthetic treatments, including Botox and Juvederm, for anti-aging skincare. Its commitment to innovation, combined with its broad range of therapies, reinforces its position as a blue-chip stock and a compelling investment opportunity.
On February 13, AbbVie Inc. (NYSE:ABBV) declared a quarterly dividend of $1.64 per share, which was in line with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 52 years. The stock supports a dividend yield of 3.25%, as of February 23.
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) is a New Jersey-based multinational pharmaceutical company. The company is strengthening its dedication to innovation and expansion through strategic acquisitions. It has unveiled plans to acquire Intra-Cellular Therapies for over $14 billion, reinforcing its commitment to central nervous system disorder treatments. The acquisition will be funded through a combination of cash reserves and debt, with the transaction expected to close later this year. This marks the largest biotech acquisition in more than a year, indicating a resurgence in healthcare mergers and acquisitions following a slower 2024 when major pharmaceutical companies focused on integrating their post-pandemic purchases.
In the fourth quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported revenue of $22.5 billion, reflecting a 5.2% increase from the previous year. As a leading healthcare company, it continues to develop treatments for conditions with significant unmet medical needs, such as multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. The MedTech segment experienced a 6.2% rise in global operational sales, with acquisitions and divestitures contributing 1.5% to this growth. The Cardiovascular division saw strong demand for electrophysiology products and Abiomed, while the General Surgery segment benefited from higher sales of wound closure products.
Johnson & Johnson (NYSE:JNJ) currently pays a quarterly dividend of $1.24 per share for a dividend yield of 3.06%, as of February 23. It is one of the best dividend aristocrat stocks on our list as the company has been raising its payouts for 62 consecutive years.
3. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 99
S&P Global Inc. (NYSE:SPGI) is an American capital market company that offers services in financial information and analytics. The company primarily operates on a subscription-based revenue model, with more than 75% of its earnings coming from recurring sources. This structure ensures financial stability, even amid market fluctuations, particularly in the debt issuance sector, where S&P Global’s credit ratings business remains essential. In addition, its Market Intelligence segment, which provides financial analytics and data, along with its Indices and Commodity Insights divisions, further contribute to consistent revenue streams.
In the fourth quarter of 2024, S&P Global Inc. (NYSE:SPGI) saw its revenue grow by 14% year-over-year, while adjusted earnings per share (EPS) rose by 20% to $3.77. Further boosting investor confidence, the company shared an upbeat forecast for the upcoming year and introduced a new share buyback program. Its revenue from the Ratings segment grew by 31% year-over-year, reflecting a broader focus beyond investment-grade and high-yield debt. The company has been expanding into other loan types and structured products, strengthening its revenue diversification.
S&P Global Inc. (NYSE:SPGI) also reported a solid cash position. For the full year, operating cash flow reached $5.7 billion, up from $3.7 billion in 2023, while free cash flow surged to $5.27 billion from $3.2 billion in the prior year. This strong cash flow allowed the company to distribute $1.1 billion to shareholders through dividends. The company currently pays a quarterly dividend of $0.96 per share and has a dividend yield of 0.72%, as of February 23. It is one of the best dividend aristocrat stocks on our list with 53 consecutive years of dividend growth under its belt.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is an American oil and gas company. In the fourth quarter of 2024, the company reported revenue of $83.4 billion, reflecting a 1.1% decrease compared to the same period the previous year. Since 2019, the company has realized $12.1 billion in Structural Cost Savings, surpassing its industry peers and effectively countering the impact of inflation and expansion. For the year, it achieved the highest return on capital employed in its sector at 12.7%, with a five-year average of 10.8%.
Exxon Mobil Corporation (NYSE:XOM) remains a major force in the global fossil fuel sector while ramping up its investments in low-carbon energy solutions. Under its 2030 strategy, the company plans to dedicate up to $30 billion toward low-emission initiatives between 2025 and 2030. Moreover, it has collaborated with the Texas General Land Office to establish the largest offshore carbon dioxide storage site in the US Exxon Mobil is also advancing efforts to develop the world’s largest low-carbon hydrogen production facility, expected to produce up to 1 billion cubic feet of hydrogen daily. In the past 12 months, the stock has surged by over 6.5%.
Exxon Mobil Corporation (NYSE:XOM) offers a quarterly dividend of $0.99 per share and has a dividend yield of 3.58%, as of February 23. In FY24, the company demonstrated solid financial strength, generating $55 billion in free cash flow—its third-highest total in the past 10 years. It reported $36.2 billion in total free cash flow for the year and distributed $16.7 billion to shareholders through dividends. Additionally, Exxon Mobil remains committed to its $20 billion annual share buyback program, which is set to continue through 2026. The company has also upheld a 42-year track record of consecutive dividend increases.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 115
Walmart Inc. (NYSE:WMT) is an Arkansas-based retail corporation that operates a chain of hypermarkets, discount stores, and grocery stores across the US. In December 2024, the company finalized its $2.3 billion acquisition of Vizio, a well-known budget-friendly television brand. This strategic decision is expected to strengthen its advertising segment, which saw a 27% increase in fiscal year 2025, reaching approximately $4.4 billion. Walmart Connect, a key component of this division, also experienced substantial growth, rising by 24%.
Walmart Inc. (NYSE:WMT) posted a 4.1% increase in revenue for fiscal Q4 2035, reaching $180.6 billion, with constant currency growth of 5.3%. The company’s operating income rose by 8.3%, supported by higher gross margins, increased membership revenue, and improved profitability in eCommerce. For the full fiscal year 2025, Walmart generated $36.4 billion in operating cash flow and ended the year with $9 billion in cash and cash equivalents. In addition, the retailer repurchased $4.5 billion in shares and announced a 13% increase in its quarterly dividend to $0.235 per share—the largest hike in over ten years.
Walmart Inc. (NYSE:WMT) also demonstrated a strong cash position in FY25. The company generated an operating cash flow of $36.4 billion, an increase of $0.7 billion. Its free cash flow for the year came in at $12.7 billion. Due to this cash generation, the company declared a 13% hike in its quarterly dividend to $0.235 per share, marking its largest hike in more than a decade. This was the company’s 52nd consecutive year of dividend growth. The stock has a dividend yield of 0.99%, as of February 23.
Overall, Walmart Inc. (NYSE:WMT) ranks first on our list of the best dividend aristocrat stocks. While we acknowledge the potential for WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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