In this article, we will take a look at some of the best dividend aristocrat stocks to invest in.
Dividends play a real role in equity returns. Over long stretches of time, they add up. Since 1926, dividends have made up about 31% of the S&P 500’s total return, while capital appreciation accounts for the remaining 69%. That split matters when thinking about long-term results.
For most investors, total return is not just about price gains. Steady dividend income and the ability for a stock to grow over time both shape outcomes. It is hard to separate the two. Companies that maintain stable and rising dividends often use them as a signal. It suggests confidence in future cash flows and in the business itself. Investors tend to read these patterns as signs of maturity and balance sheet strength.
The S&P 500 Dividend Aristocrats tracks companies in the index that have raised dividends every year for at least 25 straight years. According to a report by S&P Global, this group has delivered higher returns with lower volatility than the broader market. That combination is not easy to achieve.
Dividends also highlight the power of compounding. The difference is striking when viewed over decades. Without dividends, a S&P 500 investment starting on Jan. 1, 1930, would have grown to $278 by the end of February 2025. With dividends reinvested, that same investment would have reached $9,584. Given this, we will take a look at some of the best dividend growth stocks.
Our Methodology:
For this article, we reviewed 68 Dividend Aristocrat stocks, which are companies that have raised their dividends for 25 consecutive years. We then analyzed each company’s average annual dividend growth over the past five years and selected 14 with the highest growth rates. The stocks were then ranked according to their dividend growth performance.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
5-Year Average Dividend Growth Rate: 4.07%
Dividend Yield as of January 4: 1.54%
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is among the best dividend aristocrat stocks to invest in.
On December 24, BofA raised its price target on C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to $182 from $167 and kept a Buy rating on the shares. The firm pointed to an improving outlook, even with an end-of-quarter spike in spot rates, as ongoing cost controls continue to show results. It also lifted its Q4 EPS estimate to $1.14, slightly above the Street’s $1.13 forecast.
The stock stood out in 2025, climbing nearly 57%. Investors responded to a strong quarterly profit beat from the global freight forwarder at a time when much of the logistics sector was under pressure. That performance has been tied closely to the company’s use of artificial intelligence. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) has been automating tasks like generating shipping quotes, scheduling pickups and deliveries, and tracking shipments. Those changes have helped speed up operations and cut back on manual work.
The company also managed to grow shipment volumes across both its truckload and less-than-truckload businesses. That momentum helped its North American Surface Transportation segment deliver a 1.1% increase in revenue.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a U.S.-based transportation company operating in third-party logistics, providing freight transportation services across multiple modes.
13. Johnson & Johnson (NYSE:JNJ)
5-Year Average Dividend Growth Rate: 5.25%
Dividend Yield as of January 4: 2.51%
Johnson & Johnson (NYSE:JNJ) is one of the best dividend aristocrat stocks to invest in.
On December 30, Barclays raised its price target on Johnson & Johnson (NYSE:JNJ) to $217 from $197 and kept an Equal Weight rating on the shares. The firm reviewed sales and prescription data through the final week of December and sees room for upside to Q4 consensus estimates. The strength is coming mainly from Darzalex, Tremfya, and Simponi. Based on that trend, Barclays lifted its estimates ahead of the earnings release.
Johnson & Johnson (NYSE: JNJ) continues to generate strong free cash flow, even as it spends heavily on research and development. R&D investment reached $10.4 billion through the third quarter, putting the company among the largest investors in innovation globally. That cash flow also gives it flexibility on the deal side. Recently, the company closed its $3.1 billion acquisition of Halda Therapeutics, which brings a new platform aimed at advancing cancer treatment. Management expects these investments to support steady revenue and earnings growth, reinforcing the company’s ability to keep raising its dividend, which currently yields about 2.5%.
Oncology remains a core strength. Johnson & Johnson is one of the largest players in the space, with key products such as Rybrevant, an intravenous infusion, and Lazcluze, a once-daily pill. Used together, they target advanced non-small cell lung cancer with specific EGFR mutations. Inlexzo, developed for bladder cancer, is also expected to add momentum to the oncology portfolio.
Johnson & Johnson (NYSE:JNJ) and its subsidiaries focus on the research, development, manufacturing, and sale of a wide range of healthcare products across global markets.
12. Walmart Inc. (NASDAQ:WMT)
5-Year Average Dividend Growth Rate: 5.48%
Dividend Yield as of January 4: 0.83%
Walmart Inc. (NASDAQ:WMT) is among the best dividend aristocrat stocks to invest in.
On December 19, Wells Fargo raised its price target on Walmart Inc. (NASDAQ:WMT) to $130 from $120 and kept an Overweight rating on the shares. The firm described the 2026 outlook for the group as mixed, though still offering opportunity. Wells remains constructive on broadlines and food service, noting that fiscal and tariff-related trade is already underway. It also expects momentum to carry through the first half of EPS revisions. At the same time, the firm sees food retail as more challenging, with company-specific factors likely to matter most.
More than half of Walmart’s revenue comes from groceries. Affordable pricing keeps customers coming back week after week, especially when inflation is running high. That scale shows up both in stores and online. The company sells groceries through its Supercenters, Neighborhood Markets, and Sam’s Club locations. In fiscal 2025, Walmart Inc. (NASDAQ:WMT) generated more than $276 billion in grocery sales. Sam’s Club added another $59 billion during the same period. That combination makes Walmart the largest grocery seller in the US.
The company continues to build its international footprint. Walmart Inc. (NASDAQ:WMT) operates more than 3,000 stores in Mexico and over 400 in Canada. It also owns a majority stake in India’s Flipkart. A potential IPO for Flipkart remains a possibility and could unlock additional value for shareholders. Operating across 19 countries gives Walmart added diversification and multiple growth levers.
Walmart Inc. (NASDAQ:WMT) is a large, tech-enabled omnichannel retailer, selling everything from groceries and electronics to clothing and home goods.
