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.
9. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 71
PepsiCo, Inc. (NASDAQ:PEP) is among the best dividend aristocrat stocks to buy now. Analysts believe that the company has significant growth potential, supported by long-term trends in the snack industry, expansion in promising beverage categories such as energy drinks, and increasing demand across emerging regions, including Latin America, Africa, and Asia-Pacific. The company’s integrated business model also enhances its ability to bring products to market efficiently.
Consumer demand for snacks and beverages typically holds steady throughout different economic conditions, and PepsiCo, Inc. (NASDAQ:PEP)’s extensive supply chain helps it manage operations effectively while limiting the impact of external disruptions.
PepsiCo, Inc. (NASDAQ:PEP) leads the $242 billion global savory snacks market with well-known brands like Lay’s, Cheetos, and Doritos. It also ranks as the second-largest beverage company in the world, just behind Coca-Cola.
The company’s strong business also supports its dividend. PepsiCo, Inc. (NASDAQ:PEP) has raised its payouts for 53 years in a row. Currently, it offers a quarterly dividend of $1.4225 per share and has a dividend yield of 4.34%, as of June 27.
8. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 75
McDonald’s Corporation (NYSE:MCD) is among the best dividend aristocrat stocks to buy now. The stock is among the select group of constituents that have delivered a total return of at least 10 times since the S&P Dividend Aristocrats Index was launched. From May 2005 to May 2025, it posted a cumulative return of 1,735%, reflecting a compound annual growth rate of 15.9%.
In the first quarter of 2025, McDonald’s Corporation (NYSE:MCD)’s global comparable sales declined by 1.0%. However, when adjusted for the extra Leap Day in the prior year, sales were effectively unchanged. Systemwide sales to loyalty program members across 60 markets exceeded $31 billion over the past twelve months, with approximately $8 billion generated in the first quarter alone.
McDonald’s Corporation (NYSE:MCD) has remained committed to its shareholders’ value, growing its payouts for 48 consecutive years. Its quarterly dividend comes in at $1.77 per share for a dividend yield of 2.43%, as of June 27.
7. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 75
NextEra Energy, Inc. (NYSE:NEE) traces its origins back to December 28, 1925, when it was founded as Florida Power & Light Company (FPL). In its early years, FPL operated a variety of businesses, including power plants, water and gas facilities, ice companies, laundry services, and even an ice cream venture. According to the company’s website, FPL played a role in the historic 1969 Apollo 11 moon mission by building the Cape Canaveral Plant and strengthening the nearby electrical infrastructure.
NextEra Energy, Inc. (NYSE:NEE) is a strong dividend stock. Its dividend yield of 3.2% stands out among clean energy peers, and a five-year dividend growth rate of 10.5% highlights its strong focus on delivering value to shareholders. With a payout ratio of 59.7%, the company continues to strike a solid balance between reinvesting in future growth and maintaining consistent dividend payments.
NextEra Energy, Inc. (NYSE:NEE) has been raising its payouts for 29 years consistently and currently offers a quarterly dividend of $0.5665 per share.
6. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is one of the best dividend aristocrat stocks on our list. Oil prices are known for their volatility, often changing sharply and unexpectedly. Even when shifts aren’t sudden, they can still be significant. Companies like Chevron operate as integrated energy firms, meaning they are involved in all parts of the energy value chain— upstream, midstream, and downstream.
This broad involvement offers greater stability, as each segment of the energy sector behaves differently. Such diversification helps cushion the impact of fluctuations in commodity prices, making their operations more resilient to market swings.
Chevron Corporation (NYSE:CVX) has raised its dividends for 38 consecutive years and currently offers a quarterly dividend of $1.71 per share. The stock supports a dividend yield of 4.76%, as of June 27.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is among the best dividend aristocrat stocks on our list. Nearly half of the original members of the Dividend Aristocrats Index have retained their place since its inception on May 2, 2005. Out of the initial 57 companies, 24 are still part of the index, and Coca-Cola is one of them.
The Coca-Cola Company (NYSE:KO), a long-time favorite of Warren Buffett, remains a highly profitable business supported by a strong global customer base and a well-established distribution network. Its core Coca-Cola products continue to generate most of its revenue, while the acquisition of newer brands contributes to accelerated sales growth. These new additions are efficiently incorporated into the company’s vast distribution system, which not only drives higher sales but also improves margins by enhancing operational efficiency.
The Coca-Cola Company (NYSE:KO) holds a 63-year streak of consistent dividend growth. The company offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.9%, as recorded on June 27.
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The initial version of the S&P Dividend Aristocrats list was introduced in January 2003, highlighting the S&P companies that had maintained consistent dividend payments for 25 consecutive years. The list gained attention, especially after Microsoft declared its first-ever dividend that same month, marking a renewed investor interest in dividend-paying stocks during the post-2000–2002 bear market recovery. The official S&P Dividend Aristocrats Index, as it exists today, was launched on May 2, 2005. The Procter & Gamble Company (NYSE:PG) was among the original constituents and one of the first companies to be added to the index.
The Procter & Gamble Company (NYSE:PG) is widely regarded as one of the most dependable dividend-paying stocks. Its strength is built on a broad portfolio of market-leading brands across categories such as beauty, health, grooming, home care, and family care. With strong brand loyalty and a highly efficient global supply chain, the company consistently delivers profit margins that outpace many of its industry peers.
The Procter & Gamble Company (NYSE:PG)’s strength is evident from its 69-year track record of dividend growth, one of the longest streaks in the market. The company currently offers a quarterly dividend of $1.0568 per share for a dividend yield of 2.64%, as of June 27.
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is among the best dividend aristocrat stocks to buy. Volatile crude oil prices pose challenges for many producers, but ExxonMobil has positioned itself to weather such fluctuations with ease. After years of strategic planning, the company is built to perform well in a range of market conditions, making it a reliable long-term option for investors, even amid economic uncertainty.
Exxon Mobil Corporation (NYSE:XOM)’s approach focuses on investing in high-quality, low-cost, high-margin assets while reducing its structural expenses. Key growth areas include the Permian Basin and offshore Guyana, where expanding production is helping to lower its overall supply costs and enhance profitability. Since 2019, the company has achieved $12.7 billion in structural cost savings.
With its low-cost operations and strong financial position, Exxon Mobil Corporation (NYSE:XOM) offers a highly secure dividend, making it a dependable choice for income-focused investors. The company has raised its payouts for 42 years in a row and currently offers a quarterly dividend of $0.99 per share. As of June 27, the stock has a dividend yield of 3.62%.
2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 100
The S&P Dividend Aristocrat Index includes companies with a wide range of workforce sizes, and Walmart Inc. (NYSE:WMT) stands out as the largest private employer in the US, with around 2.1 million employees. It also leads the index in revenue, having generated approximately $674 billion in the 12 months ending December 31, 2024, with a market capitalization of about $800 billion as of March 31, 2025.
Walmart Inc. (NYSE:WMT)’s global store count declined from 11,501 at the end of fiscal 2020 to 10,593 by the end of fiscal 2022, mainly due to divestments in international markets. However, the company has since reversed that trend, closing fiscal 2025 with 10,711 stores worldwide. This steady growth in physical locations is expected to reinforce its competitive position and help it maintain an edge over smaller retail competitors.
Walmart Inc. (NYSE:WMT) has been consistently raising its dividends for the past 52 years, which makes it one of the best dividend aristocrat stocks. The company’s quarterly dividend comes in at $0.235 per share and has a dividend yield of 0.97%, as of June 27.
1. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 108
S&P Global Inc. (NYSE:SPGI) is among the select companies that have delivered a total return of at least 10 times since the inception of the S&P Dividend Aristocrats Index. Over that period, the company achieved a cumulative return of 1,546%, with a compound annual growth rate of 15.2%.
Originally known as McGraw-Hill, the company adopted the name S&P Global Inc. (NYSE:SPGI) in 2016. According to the S&P Dow Jones Indices website, the company’s roots trace back to 1860, when Henry Varnum Poor published History of the Railroads and Canals of the United States, a pioneering effort to provide market data for participants in the growing US railroad industry.
S&P Global Inc. (NYSE:SPGI) is a solid dividend payer, offering a quarterly dividend of $0.96 per share. It is one of the best dividend aristocrat stocks, as its dividend growth spans over 53 years. As of June 27, the stock has a dividend yield of 0.74%.
While we acknowledge the potential of SPGI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPGI and that has 100x upside potential, check out our report about this cheapest AI stock.
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