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.
11. West Pharmaceutical Services, Inc. (NYSE:WST)
5-Year Average Dividend Growth Rate: 5.51%
Dividend Yield as of January 4: 0.32%
West Pharmaceutical Services, Inc. (NYSE:WST) is among the best dividend aristocrat stocks to invest in.
KeyBanc sees limited risk to oral weight loss drugs through 2030, even with the potential approval of an oral version of Wegovy. In a research note, the firm said oral GLP-1 adoption is likely to stay capped in both the near and longer term, despite new products entering the market. KeyBanc estimates the oral version of Wegovy would add only about 200 basis points to total GLP-1 market share by 2030. The firm also believes GLP-1 suppliers are taking a cautious view on market penetration. West Pharmaceutical Services, Inc. (NYSE:WST) and Stevanato Group have both pointed to assumptions that oral drugs could eventually account for 30% of the overall GLP-1 market. KeyBanc is more conservative and expects injectable formats to remain the primary growth driver as next-generation GLP-1s roll out. Under that scenario, both suppliers should continue to see volume ramp.
Earlier in October, West Pharmaceutical Services, Inc. (NYSE:WST) raised its full-year profit forecast after reporting better-than-expected third-quarter results. The improvement was tied to strong demand for components used in GLP-1 weight-loss and diabetes drugs.
The drug components business now represents 47% of total revenue. During the quarter, demand picked up as drugmakers increased orders for packaging and delivery components that are critical throughout the injectable production process.
West Pharmaceutical Services, Inc. (NYSE:WST) supplies essential medical components, including stoppers, plungers, and delivery systems, which help ensure injectable medicines such as vaccines and biologics are safely stored and administered.
10. Eversource Energy (NYSE:ES)
5-Year Average Dividend Growth Rate: 5.81%
Dividend Yield as of January 4: 4.42%
Eversource Energy (NYSE:ES) is among the best dividend aristocrat stocks to invest in.
On December 17, UBS lowered its price target on Eversource Energy (NYSE:ES) to $73 from $78 and kept a Neutral rating on the shares. Analyst William Appicelli pointed to a recent filing by Eversource Energy’s NStar Gas, which reached a rate settlement with the Massachusetts Attorney General, the only party involved in the case. If approved, the agreement would allow the company to avoid a formal rate case. It would also clear one of several regulatory issues still pending, which UBS views as a constructive step.
Eversource Energy (NYSE:ES) posted strong gains in 2025, rising more than 18%. That momentum stalled in November, when shares dropped nearly 9% after Connecticut regulators rejected the company’s plan to sell its water utility business. The decision slowed Eversource’s efforts to streamline operations and lower debt.
Eversource had agreed in January 2025 to sell Aquarion in a $2.4 billion deal. The company originally acquired the water utility in 2017 for about $1.7 billion. Regulators ultimately determined that the proposed sale did not meet managerial suitability and responsibility standards in a way that aligned with the public interest. The deal did meet financial and technological requirements and was expected to maintain safe and reliable service, but that was not enough to secure approval.
Management said the state showed interest in expanding a non-profit ownership model. When regulators examined that option, the Connecticut Public Utilities Regulatory Authority found it difficult to move away from the investor-owned structure. A 2024 special act had directed the state to assess whether a non-profit model could better serve water customers.
Eversource Energy (NYSE:ES) is a utility holding company focused on energy delivery through its regulated utility subsidiaries.
9. Nucor Corporation (NYSE:NUE)
5-Year Average Dividend Growth Rate: 6.51%
Dividend Yield as of January 4: 1.32%
Nucor Corporation (NYSE:NUE) is among the best dividend aristocrat stocks to invest in.
On December 18, Wells Fargo analyst Timna Tanners lowered the price target on Nucor Corporation (NYSE:NUE) to $176 from $178 and kept an Overweight rating on the shares. Management’s Q4 guidance came in lighter than the firm’s already cautious view, largely due to contract timing that affects about 80% of sheet shipments. Even so, Wells expects investors to look past the near-term softness. The firm sees stronger pricing ahead and continued market share gains as lower imports support the setup for 2026.
A new construction cycle is starting to lift the steel sector. During the third-quarter earnings call, Nucor’s management pointed to “high-growth markets, like data center construction,” as a key driver that continues to support demand.
Data centers are not the only source of long-term growth. Expansion plans are also coming from outside the tech space. Eli Lilly recently outlined plans for a third new facility as part of a broader push to build four new manufacturing plants in the US. Construction on the $6 billion project is expected to begin in 2026. The site will be in Huntsville, Alabama, roughly 30 miles from Decatur. Nucor Corporation (NYSE:NUE) operates a major flat-rolled steel mill in Decatur, which makes its potential involvement in the Eli Lilly project a logical fit.
Large capital projects like these are encouraging for steel producers such as Nucor. At the same time, investors tend to watch supply just as closely as demand. Steel pricing, like other commodities, is shaped by that balance. As construction announcements point to rising demand, steelmakers are preparing to add capacity. Nucor is building a large new mill in West Virginia and says it remains on track to begin ramping production by the end of next year.
Nucor Corporation (NYSE:NUE) is North America’s largest steel producer and recycler. The company makes products such as rebar, structural steel, and sheet steel, relying mainly on recycled scrap and electric arc furnaces, which also helps keep its carbon footprint lower.
8. Illinois Tool Works Inc. (NYSE:ITW)
5-Year Average Dividend Growth Rate: 7.03%
Dividend Yield as of January 4: 2.58%
Illinois Tool Works Inc. (NYSE:ITW) is one of the best dividend aristocrat stocks to invest in.
On December 16, Goldman Sachs downgraded Illinois Tool Works Inc. (NYSE:ITW) to Sell from Neutral and cut its price target to $230 from $258. The analyst described the company as well-run but said the shares offer limited upside from current levels. Goldman also sees modest downside risk to earnings estimates and does not expect the stock’s valuation multiple to re-rate versus peers, given the pace of earnings improvement.
In its third-quarter 2025 results, Illinois Tool Works Inc. (NYSE:ITW) reported a record operating margin of 27.4%, up 90 basis points. Enterprise initiatives contributed 140 basis points to that performance. Operating cash flow reached $1.0 billion, while free cash flow increased 15% to $904 million. That translated into a 110% conversion rate relative to net income. Management highlighted continued progress on strategic growth priorities and reaffirmed its focus on delivering above-market organic growth through customer-backed innovation. The company said it remains on track to meet its 2030 performance goals, including a customer-backed innovation yield exceeding 3%.
For FY25, Illinois Tool maintained operating margin guidance of 26% to 27%. Enterprise initiatives are expected to add about 125 basis points for the full year. Management also reiterated confidence in reaching the $10.45 midpoint of its EPS target.
Illinois Tool Works Inc. (NYSE:ITW) is a global industrial manufacturer with a broad portfolio of value-added products, including engineered fasteners, equipment, and specialty components.
7. Atmos Energy Corporation (NYSE:ATO)
5-Year Average Dividend Growth Rate: 8.97%
Dividend Yield as of January 4: 2.36%
Atmos Energy Corporation (NYSE:ATO) is one of the best dividend aristocrat stocks to invest in.
On December 16, Morgan Stanley downgraded Atmos Energy Corporation (NYSE:ATO) to Equal Weight from Overweight and lowered its price target to $172 from $182 as part of its 2026 utilities outlook. The firm said utility stock performance in 2026 will be shaped by data center demand and pockets of growth, with “no slowing of activity or relief to grid tightness.” In that setting, Morgan Stanley urged investors to steer clear of political and regulatory risk, especially in an active election year.
Atmos Energy currently offers a forward dividend yield of about 2.3%. On the surface, that looks modest. Over time, the growth tells a different story. The company’s quarterly dividend has compounded at an annualized rate of more than 8% over the past decade. That trend appears sustainable as management is guiding for 6%–8% earnings growth in the coming years, and the business operates under a fully regulated model. That structure supports steady expansion while limiting exposure to the swings seen in unregulated utility markets.
Based in Dallas, Atmos Energy Corporation (NYSE:ATO) distributes natural gas to customers across the US. Utilities often build long dividend growth records, and Atmos has followed that path with consistency.
6. Target Corporation (NYSE:TGT)
5-Year Average Dividend Growth Rate: 11.02%
Dividend Yield as of January 4: 4.54%
Target Corporation (NYSE:TGT) is one of the best dividend aristocrat stocks to invest in.
On December 30, Wolfe Research analyst Spencer Hanus reiterated an Underperform rating on Target Corporation (NYSE:TGT) with an $81 price target after the Financial Times reported that activist investor Toms Capital is building a stake in the retailer. An activist presence could help reset the narrative around Target, which would be a positive, Hanus said in a research note. Wolfe expects additional balance sheet and income statement investments. The firm argues that price gaps in general merchandise need to be addressed and that stores require more labor hours.
Target’s third-quarter results sent mixed signals. Net sales fell 1.5% from a year earlier, while digital sales rose 2.4%. Despite the uneven performance, Target Corporation (NYSE:TGT) remains a Dividend King, having increased its dividend for 54 consecutive years.
The company is pushing harder into same-day delivery as competition intensifies. Same-day delivery volumes jumped 35% in the latest quarter. Management is also planning $5 billion in capital spending to support growth in 2026. Consumer discretionary spending remains a risk factor. Still, if economic conditions hold and the activist involvement helps drive operational change, the outlook for shareholders could improve over time.
Target Corporation (NYSE:TGT) is a general merchandise retailer selling products through its stores and digital channels.
5. Brown & Brown, Inc. (NYSE:BRO)
5-Year Average Dividend Growth Rate: 12.09%
Dividend Yield as of January 4: 0.85%
Brown & Brown, Inc. (NYSE:BRO) is among the best dividend aristocrat stocks to invest in.
On December 23, BMO Capital downgraded Brown & Brown, Inc. (NYSE:BRO) to Market Perform from Outperform and trimmed its price target to $88 from $90. The firm expects consensus organic growth estimates to drift lower in 2026, which it views as a potential “sentiment overhang” for the stock. Brown & Brown’s valuation tends to track organic growth closely, and BMO’s forecast, which sits 100 basis points below consensus, prompted the downgrade. The analyst also flagged what it described as a “talent war” with Howden, noting industry reports that Brown & Brown recently lost a large team to a competitor.
Separately, on December 15, Brown & Brown, Inc. (NYSE:BRO) announced that a subsidiary acquired the assets of the J. Kevin Campbell Agency, Inc. for an undisclosed amount. The deal was confirmed by J. Scott Penny, the company’s chief acquisitions officer, alongside Kevin Campbell, principal of the Campbell Agency.
Kevin Campbell founded the agency in 1991, building a business focused on workers’ compensation insurance solutions. In 2004, Kian Ostovar joined the firm and later opened an office in Gainesville, Florida, serving clients across north and central Florida.
Both leaders will transition into roles within Brown & Brown, Inc. (NYSE:BRO). Campbell will join the Tampa office, while Ostovar will move to the Ocala office, bringing their experience into the broader platform.
Brown & Brown, Inc. (NYSE:BRO) operates as an insurance brokerage, providing risk management solutions across property, casualty, and employee benefits lines.
4. Cintas Corporation (NASDAQ:CTAS)
5-Year Average Dividend Growth Rate: 13.87%
Dividend Yield as of January 4: 0.97%
Cintas Corporation (NASDAQ:CTAS) is among the best dividend aristocrat stocks to invest in.
On December 22, Citi raised its price target on Cintas Corporation (NASDAQ:CTAS) to $181 from $176 and kept a Sell rating on the shares.
That same day, the Wall Street Journal reported that Cintas Corporation (NASDAQ:CTAS) had submitted a renewed takeover bid for UniFirst Corp., valuing the deal at roughly $3.96 billion in equity. The move marks another attempt by Cintas to acquire its rival in the uniform rental space.
The $275-a-share cash offer comes about nine months after Cintas said it was unable to engage UniFirst in what it described as “substantive” discussions following an earlier bid at the same price in January. Cintas said the latest proposal implies a total value of about $5.2 billion. That figure represents a 62% premium to UniFirst’s last closing price after the stock dropped when the prior offer was rejected in March.
This is not the first time Cintas Corporation (NASDAQ:CTAS) has tried. The new bid follows two earlier failed approaches, including one earlier this year that UniFirst rejected before Cintas withdrew it, as well as an initial offer made in 2022. While the headline price has not changed from January, the company said it has completed extensive regulatory work and believes approvals are achievable. The proposal also includes a $350 million reverse termination fee if the transaction fails to receive clearance.
Cintas Corporation (NASDAQ:CTAS) develops and manages uniform programs using fabric-based products. The company serves businesses of various sizes, mainly across the US, with additional operations in Canada and Latin America.
3. Aflac Incorporated (NYSE:AFL)
5-Year Average Dividend Growth Rate: 15.68%
Dividend Yield as of January 4: 0.97%
Aflac Incorporated (NYSE:AFL) is among the best dividend aristocrat stocks to invest in.
On December 22, TD Cowen raised its price target on Aflac Incorporated (NYSE:AFL) to $102 from $100 and kept a Hold rating on the shares. The update followed a review of the company’s third-quarter results and revisions to the firm’s model.
In June, Aflac disclosed that hackers had gained access to customer data, though it said at the time it could not determine how many individuals were affected. Later in December, the insurer confirmed that the cyberattack impacted data tied to roughly 22.65 million people.
According to a filing with the Texas Attorney General, the stolen information included customer names, birthdates, home addresses, government-issued ID numbers, Social Security numbers, driver’s license numbers, and medical and health insurance details, TechCrunch reported. Aflac said it has begun notifying affected individuals and is outlining the support resources being made available to them as part of the response. The company made the following statement:
“To date, Aflac is not aware of any fraudulent use of personal information and — along with third-party partners — will continue to monitor any fraudulent activity.”
Aflac Incorporated (NYSE:AFL) provides financial protection products through its subsidiaries, with operations primarily in the United States and Japan.
2. Lowe’s Companies, Inc. (NYSE:LOW)
5-Year Average Dividend Growth Rate: 15.87%
Dividend Yield as of January 4: 1.94%
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best dividend aristocrat stocks to invest in.
Lowe’s stands out as a reliable dividend payer. The company maintains a payout ratio of roughly 40% of earnings and an even smaller share of free cash flow. That coverage leaves room for the dividend to grow while still funding reinvestment and share buybacks. The current yield sits near 2%.
The business itself is built for durability. As one of the largest home improvement retailers in the US, Lowe’s Companies, Inc. (NYSE:LOW) benefits from steady demand tied to home maintenance, repairs, and remodeling. Those needs do not disappear easily, even when the economy slows.
Management has leaned into two areas that matter. One is expanding the professional contractor business. The other is improving omnichannel capabilities. Together, those moves have helped keep revenue stable through several uncertain years. Earnings growth tells a similar story as over the past decade, earnings per share have increased by roughly 350%, reflecting both operational gains and capital discipline.
The company’s revenue comes from a few core channels. The largest is the DIY segment, driven by homeowners handling their own projects. The Pro segment follows, serving small and mid-sized contractors along with property managers. That mix gives the company exposure to both consumer spending and professional construction activity.
In 2025, Lowe’s Companies, Inc. (NYSE:LOW) made a clear push into the professional contractor market, which management sees as a roughly $250 billion opportunity. In June, the company completed the $1.33 billion acquisition of Artisan Design Group. ADG focuses on design and installation services for interior finishes such as flooring and cabinets, with a customer base that includes large homebuilders.
That expansion continued in October with the $8.8 billion acquisition of Foundation Building Materials. The deal brought more than 370 locations across North America and added a broad distribution network for interior products like drywall, metal framing, and ceiling systems.
Lowe’s Companies, Inc. (NYSE:LOW) operates as a full-service home improvement retailer, offering products for construction, maintenance, repair, remodeling, and decorating across a wide range of categories.
1. Nordson Corporation (NASDAQ:NDSN)
5-Year Average Dividend Growth Rate: 21.07%
Dividend Yield as of January 4: 1.36%
Nordson Corporation (NASDAQ:NDSN) is among the best dividend aristocrat stocks.
On December 15, Vertical Research upgraded Nordson Corporation (NASDAQ:NDSN) to Buy from Hold and set a $270 price target.
A few days earlier, on December 12, DA Davidson raised its price target on Nordson to $290 from $285 and kept a Buy rating after the company delivered a Q4 earnings beat. The firm pointed to improving operating margins, especially in the Medical and Fluid Solutions segment, where divestiture benefits and volume recovery are starting to show. Order activity within Advanced Technology Solutions also looks healthy, based on recent inbound trends. DA Davidson added that the company’s balance sheet remains strong, leaving room for additional share buybacks.
Nordson Corporation (NASDAQ:NDSN) reported fourth-quarter 2025 revenue of $752 million on December 10, up 1% from the same period last year. President and CEO Sundaram Nagarajan said the company is entering fiscal 2026 with about $600 million in backlog, an increase of 5% from the prior year-end, excluding backlog tied to the divested business. Management expects full-year sales to come in between 1% and 6% above fiscal 2025 levels.
For fiscal 2026, the company forecast adjusted earnings growth of 6% to 12% per diluted share, with a midpoint of 9%. For the first quarter, Nordson expects sales in the range of $630 million to $670 million and adjusted earnings between $2.25 and $2.45 per diluted share.
Nordson Corporation (NASDAQ:NDSN) operates as a precision technology company, engineering and manufacturing specialized products and systems across a range of end markets.
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