In this article, we will take a look at the 13 Cheapest Dividend Aristocrats to Invest in.
Dividend stocks have lagged the broader market recently. However, there are hints that this stretch of underperformance may be losing momentum. Artificial intelligence, which has powered much of the market’s recent gains, could eventually help narrow the divide.
In its 2026 outlook, Raymond James pointed out that the S&P 500 Dividend Aristocrats Index is enduring one of its weakest relative periods versus the S&P 500 in decades. Dividend Aristocrats are companies that have increased their dividends for at least 25 consecutive years. Historically, that track record has been associated with consistency and financial strength.
Eagle Asset Management, a Raymond James subsidiary, reviewed trailing 12-month relative returns going back to 1991 through January 31, 2026. The current slump began in May 2023. As of last month, Dividend Aristocrats were trailing the broader index by 7.3% over the prior 12 months. In December, that shortfall had reached 10.6%, suggesting the gap, while still meaningful, has begun to narrow.
John Lagowski, a portfolio manager at Eagle, stressed that dividend-paying stocks have not delivered weak returns outright. Since the start of 2022, Dividend Aristocrats and other above-median dividend payers have generated about 9% annualized returns. A small group of AI-driven mega-cap stocks has dominated index performance. The powerful earnings growth of the so-called Magnificent Seven pulled the broader market sharply higher, leaving many other companies behind on a relative basis.
Lagowski noted that the earnings gap between those leaders and the rest of the market, once wide, is now closing. As that imbalance narrows, performance leadership may continue to broaden. He expects dividend stocks’ underperformance to stabilize and move closer to neutral levels. Market gains are no longer as tightly concentrated as they were at the peak of the AI surge.
He also pointed to a supportive economic backdrop and easier year-over-year comparisons for companies that previously struggled. Over time, he believes the benefits of artificial intelligence will extend beyond large technology firms and begin to show up in earnings across a wider range of sectors. If that plays out, dividend stocks could find themselves on firmer ground.
Given this, we will take a look at some of the best dividend aristocrat stocks to invest in.
Our Methodology:
For this list, we scanned the list of the Dividend Aristocrats, the stocks that have raised their payouts for 25 years or more. From this group, we identified 10 stocks with the lowest price-to-earnings (P/E) ratios. The chosen stocks featured in the list exhibit a forward P/E ratio below 20 as of February 12. The stocks are ranked in ascending order of their P/E ratios.
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13. Pentair plc (NYSE:PNR)
Forward P/E Ratio: 18.87
On February 5, Barclays analyst Julian Mitchell cut his price recommendation on Pentair plc (NYSE:PNR) to $102 from $115 after reviewing the company’s latest earnings. He kept an Equal Weight rating on the stock. In his view, shares could have a hard time gaining momentum as long as pool margins are “treading water.”
During the fourth-quarter 2025 earnings call, Pentair’s CEO John Stauch reflected on the company’s direction as it enters its 60th year. He described a focused strategy built around customers, innovation, tight execution, and sustainability. Management believes that the foundation puts the company in a good position to post solid growth in 2026 and beyond.
Stauch also outlined several leadership changes. Nick Brazis has been named the incoming CFO. At the same time, De’Mon Wiggins and Adrian Chiu are stepping into new roles as part of a broader effort to realign the organization. One of the more meaningful changes is set for the first quarter of 2026. The company plans to combine its Flow residential business with the residential segment in Water Solutions. Stauch said the move is designed to create regional sales and G&A efficiencies while also positioning the business for both organic expansion and potential acquisitions.
On performance, the fourth quarter showed steady progress. Sales rose 5%, marking the 15th consecutive quarter of margin expansion. Adjusted operating profit increased 9%. Return on sales improved by 90 basis points to 24.7%, and adjusted EPS climbed 9% to $1.18. For the full year, Pentair posted record results across several key measures, including annual sales, adjusted operating income, return on sales, and adjusted EPS.
Pentair plc (NYSE:PNR) provides a broad portfolio of smart, sustainable water solutions serving residential, commercial, and industrial customers worldwide. The company operates through three segments: Flow, Water Solutions, and Pool.
12. Genuine Parts Company (NYSE:GPC)
Forward P/E Ratio: 17.95
On February 12, Truist raised its price recommendation on Genuine Parts Company (NYSE:GPC) to $162 from $146 and kept a Buy rating in place. The firm sees a supportive setup heading into Q4. In its view, the automotive segment should get a lift from same-SKU inflation, while the industrial business appears to be gaining traction after showing improvement in Q3.
On February 11, Evercore ISI analyst Greg Melich also nudged his price target higher, lifting it to $155 from $150 and maintaining an Outperform rating. The upward revisions reflect growing confidence that the company’s momentum is holding.
In Q3, the company posted $6.3 billion in sales, up about 5% from a year ago. Comparable sales improved sequentially in both the U.S. Automotive and Motion businesses, suggesting demand trends are stabilizing rather than deteriorating. Profitability also moved in the right direction. Gross margin expanded by 60 basis points year over year, supported by disciplined pricing, better sourcing, and the contribution from acquisitions. Adjusted EBITDA climbed 10%, with margin improvement in both the Automotive and Industrial segments. Adjusted diluted EPS reached $1.98, up 5% from the prior-year period.
Management acknowledged that the broader market remains somewhat soft, particularly in Europe. Even so, the company is pushing to capture additional share, working closely with existing customers while bringing in new ones. At the same time, it continues to manage through tariffs, trade uncertainty, and lingering inflation pressures without losing focus on margins. Growth has also come from expansion. This year alone, the company has acquired more than 85 locations across the US from independent operators and competitors. It has also agreed to acquire Benson Auto Parts, which operates roughly 85 stores in Ontario and Quebec.
Genuine Parts Company (NYSE:GPC) is a global distributor of automotive and industrial replacement parts. Its operations are split between two main segments: Automotive Parts and Industrial Parts.
