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.
9. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP) is a leading global packaged food and beverages company with a wide range of top brands. Its beverage portfolio includes Pepsi, Mountain Dew, and Gatorade, and its food division has well-known brands such as Lay’s, Doritos, Quaker Oats, and Cheetos.
Lately, PepsiCo, Inc. (NASDAQ:PEP) has encountered challenges, specifically in North America, where volume declined for both snacks and beverages. Inflation and consumer trends are pushing a lot of people to stop buying snacks and sugary drinks. Meanwhile, the increasing popularity of healthier eating habits, along with weight-loss drugs, has also been weighing on demand for conventional products. The stock is down by almost 7% since the year 2025 started.
PepsiCo, Inc. (NASDAQ:PEP) is adjusting its approach to the value initiative amid consumer pressure, but these offerings will be product and channel-specific rather than company-wide in terms of generic promotions. On the other hand, the strong performance of its international operations has outweighed domestic weakness and has further strengthened the company’s pricing power.
In addition, PepsiCo, Inc. (NASDAQ:PEP)’s dividend policy makes it an attractive choice for income investors. The company has a quarterly dividend amount of $1.4225 per share and a dividend yield of 4.06% as of September 26. PEP has been raising its payouts for 53 years running, which makes it one of the most reliable dividend aristocrat stocks to invest in.
8. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 76
Oil and natural gas have always had a reputation for being highly volatile, meaning prices can move wildly in a matter of days. This impacts energy producers such as Chevron Corporation (NYSE:CVX) directly, and can have a substantial impact on its revenue and earnings from one quarter or year to the next.
Even so, energy exposure continues to be crucial for investors as the world is still heavily dependent on oil and gas. When prices fall, demand for these fuels is relatively inelastic, and the transition toward cleaner sources of energy probably won’t result in their complete displacement. Chevron Corporation (NYSE:CVX) is a significant provider of these vital commodities, so it has a critical role to play, and that makes it a compelling choice, particularly for investors who are dividend-focused.
Chevron Corporation (NYSE:CVX) is one of the best dividend aristocrat stocks to buy right now, as the company has consistently increased its payouts for 38 years. In addition, the company returned $5 billion to its shareholders over the last quarter. It currently offers a quarterly dividend of $1.71 per share and a dividend yield of 4.28%, as of September 26.
7. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 78
McDonald’s Corporation (NYSE:MCD) is a fast food holding company. About 90% of these are owned and operated by franchise owners. A few years back, the company converted a large majority of its restaurants in China and other global markets to franchises, employing a more asset-light business model that minimized the fixed costs associated with operating company stores. It also owns much of the real estate on which its franchise restaurants sit, and can charge rent to those franchises.
Despite pressures on McDonald’s Corporation (NYSE:MCD) from declining consumer spending, it has proven to be a steady performer due to its strong brand recognition, prime location, and powerful marketing. The stock is off to a solid start this year, running up over 4% by the beginning of 2025.
McDonald’s Corporation (NYSE:MCD) is also preferred by dividend investors on account of its dividend growth track record, which spans 48 years. The company pays a quarterly dividend of $1.77 per share and has a dividend yield of 2.32%, as of September 26.
6. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 84
The Coca-Cola Company (NYSE:KO) may have expanded into a beverage behemoth with hundreds of brands and products worldwide, but it still winds up leaning on its staple Coke and Coke Zero, the latter of which speaks to consumers looking for lower-sugar alternatives.
The easy business model of The Coca-Cola Company (NYSE:KO) makes it a good long-term stock. Its products are inexpensive and broadly popular, and it has enjoyed relative stability over the years. The company has also shown its pricing power by bringing its prices up with inflation without affecting its sales, demonstrating the timeless nature of the very powerful brands it possesses.
Also, The Coca-Cola Company (NYSE:KO) has been returning value to its shareholders for decades through dividends. The company has raised its dividends for 63 consecutive years, making KO one of the top dividend aristocrat stocks. On a quarterly basis, it pays out a dividend of $0.51 per share and has a dividend yield of 3.11%, as of September 26.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 88
Exxon Mobil Corporation (NYSE:XOM) holds conventional oil and gas interests in close to 20 countries, and its daily production is approximately 1.3 million net oil-equivalent barrels. However, upstream is not just about conventional for them either, having participated in unconventional, deepwater, heavy oil and liquefied natural gas (LNG) projects. This portfolio grew considerably with the May 2024 acquisition of Pioneer Natural Resources, which is anticipated to increase Permian output from 1.2 million barrels of oil equivalent per day in 2024 to around 2 million by 2027.
Exxon Mobil Corporation (NYSE:XOM) has also been making strides in improving its balance sheet. Its debt-to-capital ratio fell to 13% in Q2 2025, from 21.4% in Q4 2021 and 29.2% in Q4 2020. With its stronger financial position, the company is poised to keep up with its long tradition of growing dividends.
Exxon Mobil Corporation (NYSE:XOM) has an already well-covered dividend that has been raised for 42 consecutive years, making it one of the best dividend aristocrat stocks for dividend increases. The company pays a quarterly dividend of $0.99 and has a dividend yield of 3.36%, as of September 26.
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The Procter & Gamble Company (NYSE:PG) has a diverse portfolio of consumer goods that is marketed through Beauty, Grooming, Health Care, and Home Care segments, and it is based on a massive multinational scale. Operating in nearly 180 markets, it enjoys a powerful worldwide distribution network and long-lasting partnerships with leading retailers, including Walmart. The success of the company lies in innovating continuously and retaining brand relevance to be competitive across diverse consumer demands.
In the last few years, The Procter & Gamble Company’s (NYSE:PG) strategy has focused on maintaining product leadership as well as enhancing brand messaging. Established retailer relationships, innovation based on research, and supply chain management are also vital components in the company’s performance.
The Procter & Gamble Company (NYSE:PG) has been catching the eye of investors due to its long and stable dividend track record. The firm has a run of 69 years of steady dividend growth, and it presently pays a quarterly dividend of $1.0568 per share. It supports a dividend yield of 2.78%, as of September 26.
3. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that manufactures and markets innovative medicines. The demand for drugs is so stable that the industry is considered highly defensive, with little economic exposure. Even in recessions, doctors continue to prescribe treatments and patients continue to buy them. The company has a diversified portfolio in multiple therapeutic areas that includes immunology, oncology, neuroscience, and eye care.
Since a large portion of its drugs treat serious or chronic diseases, AbbVie Inc. (NYSE:ABBV) enjoys dependable revenues and earnings, which finance its dividend program. Through a transaction with Denmark-based Gubra A/S, the firm is entering the obesity market, where it will develop GUB014295, an experimental weight loss drug. The deal was for an initial $350 million, potentially increasing by as much as $1.9 billion in clinical milestones, plus future royalties on sales.
AbbVie Inc. (NYSE:ABBV) had to deal with some headwinds some time ago, but it kept its dividends despite this. The company has been increasing its payouts for 53 straight years, making it one of the best dividend aristocrat stocks to purchase now. Presently, it is paying a quarterly dividend of $1.64 per share and is yielding 2.98%, as of September 26.
2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 105
Walmart Inc. (NYSE:WMT) has grown from its small-town roots in Arkansas into one of the world’s leading retailers. While its era of rapid expansion may have passed, the company continues to deliver strong returns by capitalizing on its vast US presence and growing online operations to maintain its dominance.
Nearly 90% of Americans live within 10 miles of a Walmart Inc. (NYSE:WMT) store, and its Sam’s Club division ranks as the second most successful warehouse retailer in the US, behind Costco. Although its international expansion has faced challenges, the company has gained traction in online retail abroad, where more consumers are embracing its low-price strategy.
Walmart Inc. (NYSE:WMT)’s dividend is one of the most appealing things about it. On September 2, the company declared a quarterly dividend of $0.235 per share, which was in line with its previous dividend. Overall, it has raised its dividends for 52 consecutive years. As of September 26, the stock supports a dividend yield of 0.91%.
1. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 106
S&P Global Inc. (NYSE:SPGI) provides financial insights, credit ratings, market indices, and commodity pricing services. Its core operations involve rating the credit quality of debt issuers, creating benchmarks like the S&P 500, delivering market analytics, and offering transparent pricing for commodities.
S&P Global Inc. (NYSE:SPGI)’s stability is supported by recurring subscription-based revenues. Its strategic priorities include developing AI-powered products, growing its private markets data business, and adding sustainability metrics to its analytics. Continued success relies on keeping customers, effectively integrating new technologies, and maintaining resilience amid changes in global financial markets.
In addition, S&P Global Inc. (NYSE:SPGI) is a strong dividend company, having raised its payouts for 53 years in a row. It currently pays a quarterly dividend of $0.96 per share for a dividend yield of 0.79%, as of September 26.
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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