In this article, we will take a look at some of the best dividend aristocrat stocks to buy now.
The Dividend Aristocrat Index tracks the performance of companies that have raised their payouts for 25 consecutive years or more. Since its inception in 2005, the S&P Dividend Aristocrats Index has consistently delivered strong dividend growth, helping investors maintain purchasing power over time. According to S&P Dow Jones Indices, the index has recorded an annualized dividend growth rate of 8.1% since May 2, 2005, more than triple the approximate 2.6% annual inflation rate measured by the Consumer Price Index (CPI) over the same period.
The report also highlighted that many current members of the index have far exceeded the 25-year minimum requirement for dividend growth. Of the 69 companies included, 34 have increased their dividends for at least 45 consecutive years. This long history of rising payouts underscores their consistent ability and commitment to returning capital to shareholders over multiple decades.
Beyond attractive dividend yield and growth, the index also shows defensive investment characteristics. Compared to the broader market, the Dividend Aristocrats have historically experienced lower overall volatility, smaller drawdowns, and better downside protection. In terms of performance, the index posted a 10.49% annualized total return versus 10.35% for the wider market as of March 31, 2025. It also stood out during periods of market stress, most notably in 2008, when the market dropped 37% while the Dividend Aristocrats declined just 22%, resulting in a relative outperformance of more than 15%.
Given this, we will take a look at some of the best dividend aristocrat stocks to buy now.
Our Methodology:
For this article, we first listed down all dividend aristocrat stocks, the companies with 25+ years of consecutive dividend increases. From that list, we picked 11 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them, as per Insider Monkey’s Q1 2025 database.
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).
11. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 65
Colgate-Palmolive Company (NYSE:CL) is among the best dividend aristocrat stocks to buy now. Founded in 1806, the company is the oldest among the S&P Dividend Aristocrats. The business traces its origins back to William Colgate, who started a starch, soap, and candle venture on Dutch Street in New York City. Today, the company continues to focus on its main product categories— oral care, personal care, home care, and pet nutrition— serving customers in over 200 countries and territories around the world, according to its official website.
Colgate-Palmolive Company (NYSE:CL) holds a strong dividend policy due to its robust balance sheet. In the first quarter of 2025, the company reported an operating cash flow of $600 million and had over $1.1 billion available in cash and cash equivalents. Its free cash flow came in at $476 million for the quarter.
Colgate-Palmolive Company (NYSE:CL) has been rewarding shareholders with growing dividends for the past 62 years. The company offers a quarterly dividend of $0.52 per share and has a dividend yield of 2.34%, as of June 27.
10. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 68
Among the founding members of the S&P Dividend Aristocrats Index, The Sherwin-Williams Company (NYSE:SHW) has stood out as the strongest performer. The stock recorded the highest return between May 2, 2005, and May 2025, delivering a gain of 2,981% with dividends reinvested. This translates to a return of more than 30 times over the 20-year period.
As detailed in the company’s 150th anniversary book, The Sherwin-Williams Company (NYSE:SHW) was established in 1866 when Henry Sherwin invested his life savings into the paint business. He and his partner Edward Williams built the company on a guiding principle: “What is worth doing is worth doing well.”
The Sherwin-Williams Company (NYSE:SHW) currently offers a quarterly dividend of $0.79 per share and has a dividend yield of 0.91%, as of June 27. The company has been growing its payouts for the past 46 years, which makes it one of the best dividend aristocrat stocks on our list. In the most recent quarter, it returned $552.1 million to shareholders through dividends.
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.
