In this article, we will take a look at some of the best dividend aristocrat stocks to buy now.
Dividends have been a crucial contributor to stock returns for a long time. They have made up 31% of the S&P 500’s total return since 1926, with the other 69% coming from price appreciation. This makes both reliable dividend income and the potential for capital appreciation critical to overall return expectations.
Companies that are able to sustain, or increase, their dividends are often viewed as having positive prospects. Investors, in turn, treat such track records as markers of financial solidity and stability. The S&P 500 Dividend Aristocrats Index consists of S&P companies that have increased dividends every year for at least 25 consecutive years. These companies tend to offer a combination of dividend income and capital growth – unlike some income investing approaches that focus either on income alone or solely on capital growth.
Over many years, Dividend Aristocrats have not only consistently outperformed the broader S&P 500, but also with less volatility, resulting in better risk-adjusted returns. 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 12 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 Q2 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).
12. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 59
Colgate-Palmolive Company (NYSE:CL) is a manufacturer and marketer of consumer products that is divided into the Oral, Personal and Home Care, and Pet Nutrition segments. The company is the dominant player in Oral Care, holding a 40.9% share of the global toothpaste market and a 31.9% share of the manual toothbrush market this year.
It operates in more than 200 countries, and the company’s products have an excellent reach across the world. Colgate-Palmolive Company (NYSE:CL) has been stressing its pledges to sustainability while continuing to develop as a leader in several product categories. A fundamental part of its approach is sustainability, with initiatives including recyclable toothpaste tubes and clearly-defined environmental goals.
Colgate-Palmolive Company (NYSE:CL) announced a quarterly dividend of $0.52 per share on 12 September. The company has increased its dividends for 62 years, making it one of the best dividend aristocrat stocks. The stock has a dividend yield of 2.62%, as of September 26.
11. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 66
NextEra Energy, Inc. (NYSE:NEE) is the largest electric utility holding company in the U.S. The growing need for electricity, fueled by the rapid expansion of AI data centers, the return of manufacturing to domestic soil, and the increasing adoption of electric vehicles, is expected to transform the global energy sector in the years ahead. Power demand in the US alone might increase by 55% at most by 2040, necessitating a significant expansion in capacity. This is good for companies growing their power infrastructure, and NextEra is a clear top leader. Its substantial capital expenditures to enhance production may allow its growth to proceed in both business and dividend payout, which are attractive.
NextEra Energy, Inc. (NYSE: NEE) is the parent company of Florida Power & Light (FPL), the country’s largest electric utility company, and also an energy resources arm that is one of the largest power producers. The company is one of the best-known leaders in the development and production of renewable energy.
Moreover, NextEra Energy, Inc. (NYSE:NEE) is also a steady dividend payer, having increased its payments for 29 years. The company has a quarterly dividend of $0.5665 per share and a dividend yield of 3.00%, as of September 26.
10. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 67
The Sherwin-Williams Company (NYSE:SHW) has one of the largest paint store networks in North America, which provides architectural paints, industrial coatings, and specialty resins. Their Paint Stores Group is focused on the professional, contractor, and Do-It-Yourself customers; however, other segments concentrate on serving both retail and industrial clients. With a broad global reach, the company benefits from strong distribution and customer access.
In addition, income investors may appreciate The Sherwin-Williams Company (NYSE:SHW) because of its solid history of dividend payments. With a 46-year track record of dividend growth, the company is among the top dividend aristocrat stocks on our list. It is currently trading with a quarterly dividend of $0.79 per share and has a dividend yield of 0.92%, as of September 26.
Strategically, The Sherwin-Williams Company (NYSE:SHW) has been focused on growing its store count, capitalizing on product innovation, on cost management, and workforce enhancement, all the while adhering to environmental compliance. Strong supplier relationships, in-house development, and disciplined talent management underpin the model, with store growth and R&D representing the pillars of sales and earnings growth.
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