In this article, we will take a look at the 12 best dividend aristocrat stocks to invest in.
Dividend stocks have always been popular with investors. Most people start with large-cap dividend names, but mid-cap dividend stocks have been getting a lot of attention as well. Investors often like the mix of steady income and room for growth that mid-caps can offer.
The S&P MidCap 400 Dividend Aristocrats Index uses a simple but strict screening rule. To qualify, a company must be part of the S&P MidCap 400 and must have increased its dividend for at least 15 straight years. That requirement alone filters out a lot of inconsistent names. Because of this, the index usually ends up with companies that show financial stability, steady profitability, and disciplined capital allocation.
S&P Global highlighted just how effective this approach has been. Over the last decade, the S&P MidCap 400 Dividend Aristocrats outperformed 91.64% of active funds marketed as “value” products that provide US large-, mid-, small-, and micro-cap exposure. That’s a strong result, especially considering how many investors pay high fees for active management in this category.
The same report also compared the strategy against several benchmarks, including the S&P 400, the S&P MidCap 400 Equal Weight Index, the S&P 400 MidCap Value, and the S&P 400 MidCap Growth. The Dividend Aristocrats strategy came out ahead across the full style box, which is not easy to do.
Another point that stands out is risk. The strategy didn’t just deliver stronger absolute performance; it also posted the lowest volatility among the group. That pushed its risk-adjusted return to 0.65 over the period, showing it wasn’t only about returns, but also about how smoothly those returns were achieved. 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 holdings of MidCap 400 Dividend Aristocrats, which tracks the performance of mid-sized companies within the MidCap 400 index that have maintained a consistent track record of increasing dividends annually for at least 15 years. From the index, we picked 14 dividend stocks that have garnered the most attention from hedge fund investors by the conclusion of Q3 2025, using data from Insider Monkey’s database. The stocks are ranked according to the number of hedge funds having stakes in them.
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. Silgan Holdings Inc. (NYSE:SLGN)
Number of Hedge Fund Holders: 22
Consecutive Years of Dividend Growth: 21
Silgan Holdings Inc. (NYSE:SLGN) is among the best dividend aristocrat stocks to invest in.
On January 6, Truist trimmed its price target on Silgan Holdings Inc. (NYSE:SLGN) to $50 from $53, while keeping its Buy rating. The analyst said packaging volumes could be a bit pressured in early 2026, mainly because promotional activity remains limited. Even so, some consumer packaged goods companies are still finding ways to lift volumes without giving back the pricing gains they’ve already achieved. Truist also expects beverage can demand to stay on an upward track in both North America and Europe. On the containerboard side, the firm believes producers should be able to push through price hikes, supported by disciplined supply management.
Separately, in November, Silgan Holdings Inc. (NYSE:SLGN) announced that its board approved a share repurchase program of up to $500 million, running through December 31, 2029. Adam Greenlee, President and CEO, made the following statement:
“This new authorization replaces our prior authorization which had approximately $25 million remaining for common stock repurchases. This new authorization will allow us to repurchase up to $500 million of our common stock from time to time through December 31, 2029. As in the past, we maintain a disciplined, returns based approach to capital deployment which has created significant value over time for our shareholders and the Company.”
Silgan Holdings Inc. (NYSE:SLGN) is a major supplier of sustainable rigid packaging used in everyday consumer goods. The company runs 124 manufacturing facilities across North and South America, Europe, and Asia.
13. Ryder System, Inc. (NYSE:R)
Number of Hedge Fund Holders: 25
Consecutive Years of Dividend Growth: 20
Ryder System, Inc. (NYSE:R) is among the best dividend aristocrat stocks to invest in.
On January 8, Wolfe Research analyst Scott Group downgraded Ryder System, Inc. (NYSE:R) to Peer Perform from Outperform.
Just a few days earlier, on January 5, Ryder completed its acquisition of Truck Service Depot, an Atlanta-based mobile maintenance provider that services commercial trucks and trailers across Georgia. The company said the deal strengthens its Torque by Ryder retail mobile maintenance platform and helps speed up growth for that offering.
Truck Service Depot brings a team of more than 20 technicians and operates two locations: a large 10-bay drive-through maintenance facility in Atlanta, along with a service center in Savannah, Georgia. Ryder expects the acquisition to create efficiencies and deliver added value to customers of both companies.
To keep operations running smoothly, Torque by Ryder plans to integrate Truck Service Depot’s employees, assets, and day-to-day operations into its broader network over the course of 2026. Ryder Systems also said Truck Service Depot founder Scott Marshall, who launched the business in 2018, will work closely with the company to support the transition.
Ryder System, Inc. (NYSE:R) is a fully integrated logistics and transportation company that provides supply chain, dedicated transportation, and fleet management solutions.
12. Donaldson Company, Inc. (NYSE:DCI)
Number of Hedge Fund Holders: 25
Consecutive Years of Dividend Growth: 29
On January 9, Jefferies upgraded Donaldson Company to Buy from Hold and lifted its price target to $120 from $92. The analyst said the stock has been moving higher as investors start to see early signs of improvement in the mining and non-residential construction markets. Jefferies believes clearer confirmation of that upswing could support the shares into mid-2026. The firm also noted that Donaldson stands to benefit from an easier credit backdrop and fiscal stimulus, which could boost demand in gas turbines, industrial markets, and trucks.
Donaldson last reported fiscal Q1 2026 earnings on December 4. CEO Tod Carpenter pointed to a strong start to the year, with record sales of $935 million, a record operating margin of 15.5%, and EPS of $0.94, up 13% from the prior year. He said momentum was broad-based, with growth coming from areas like Mobile Aftermarket, Power Generation, Food and Beverage, and Disk Drive.
Carpenter also highlighted the company’s expanding partnerships, including work with NAPA, and said Donaldson Company continues to take share in the independent channel. That part of the business delivered nearly double-digit sales growth. In Off-Road, he said strength tied to construction activity helped offset weaker conditions in agriculture. He also pointed to strong demand in Power Generation, with order books staying full as data centers and AI-related infrastructure drive spending.
Following the quarter, Donaldson raised its full-year operating margin outlook by 10 basis points to 16.2%–16.8%, with the midpoint at 16.5%, and suggested incremental margins could run above 40%. The company also nudged up its fiscal 2026 EPS guidance by $0.03, now forecasting $3.95 to $4.11, with a midpoint of $4.03.
Donaldson Company, Inc. (NYSE:DCI) is a global leader in filtration products and solutions, serving customers across a wide range of industries and specialized markets.
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