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.
11. Cullen/Frost Bankers, Inc. (NYSE:CFR)
Number of Hedge Fund Holders: 27
Consecutive Years of Dividend Growth: 39
On January 5, Keefe Bruyette analyst Catherine Mealor upgraded Cullen/Frost Bankers, Inc. (NYSE:CFR) to Outperform from Market Perform, while keeping her price target unchanged at $150. The firm said the stock lagged in 2025, and it now sees several reasons earnings estimates could move higher through 2027. Mealor expects Cullen/Frost’s organic loan growth to pick up meaningfully and forecasts it will lead its peer group, reaching about 8% in 2026. Keefe also believes the bank will step up its capital deployment and argues the market is not fully appreciating the earnings lift that could come from its branch expansion strategy.
In contrast, Barclays took a more cautious stance earlier in December. The firm lowered its price target on Cullen/Frost to $140 from $145 and maintained an Equal Weight rating. Barclays said the change was part of its broader 2026 outlook update for mid-cap banks, where it expects bigger differences to emerge across the group in terms of loan growth and book value expansion.
Cullen/Frost Bankers, Inc. (NYSE:CFR) is a Texas-focused bank holding company that provides a wide range of financial products and services across multiple markets in the state.
10. The Toro Company (NYSE:TTC)
Number of Hedge Fund Holders: 29
Consecutive Years of Dividend Growth: 16
The Toro Company (NYSE:TTC) is one of the best dividend aristocrat stocks to invest in.
On December 18, Baird raised its price target on The Toro Company (NYSE:TTC) to $86 from $84 and reiterated a Neutral rating. The firm said it updated its forecasts after Toro’s Q4 results, which pointed to stronger free cash flow and signs that expectations may be starting to bottom.
Earlier in the month, on December 8, Toro announced it had completed its acquisition of Tornado Infrastructure Equipment Ltd. (TGH), a Calgary-based manufacturer known for hydrovac excavation equipment used in underground construction, power transmission, and energy-related work.
Toro said Tornado’s machines are designed for safe excavation in dense urban environments and around critical infrastructure, making the business a strong fit within Toro’s expanding construction equipment portfolio. The deal also positions Toro to benefit from rising demand in vacuum excavation. With Tornado added alongside brands like Ditch Witch and other underground construction products, Toro believes it can widen its reach and strengthen its position in the industry.
The Toro Company (NYSE:TTC) paid C$279 million for the acquisition, financing it with debt through existing credit facilities and other arrangements. The company expects the transaction to be slightly accretive to adjusted EPS in the first year, with a larger contribution in later years. Toro also reiterated its expectation for about $3 million in annual run-rate cost synergies over the next three years, mainly from purchasing and manufacturing efficiencies. Beyond cost savings, it also sees potential upside from revenue synergies and working capital improvements over time.
The Toro Company (NYSE:TTC) is a global provider of outdoor environment solutions, spanning turf and landscape maintenance, snow and ice equipment, underground utility construction, rental and specialty construction products, as well as irrigation and outdoor lighting.
9. Equity LifeStyle Properties, Inc. (NYSE:ELS)
Number of Hedge Fund Holders: 29
Consecutive Years of Dividend Growth: 21
On January 8, UBS cut its price target on Equity LifeStyle Properties, Inc. (NYSE:ELS) to $67 from $77, while keeping a Buy rating on the stock.
In its note, UBS said 2026 could shape up as an important turning point for REITs. The firm expects total returns of roughly 9%–11%, supported by improving macro conditions, more attractive valuations, easing supply pressures, and a steadier political backdrop. UBS also sees 2026 as a two-speed year for the sector; more defensive conditions in the first half, followed by stronger tailwinds and catalysts in the second half. Within REITs, the firm said areas like Healthcare, Shopping Centers, and Coastal Apartments could be positioned to benefit more as the year progresses.
Operationally, Equity LifeStyle said that as of September 30, it held interests in 455 properties across 35 US states and British Columbia, representing 173,341 sites. The company also reported that core property operating expenses (excluding property management) rose 0.5% year-over-year for the quarter ended September 30, 2025, and came in below its prior guidance.
Equity LifeStyle Properties, Inc. (NYSE:ELS) is a self-managed REIT focused on lifestyle-oriented real estate. Its portfolio includes manufactured home (MH) and recreational vehicle (RV) communities, along with marinas, and it generates revenue through property operations as well as home sales and rental activity.
8. Polaris Inc. (NYSE:PII)
Number of Hedge Fund Holders: 31
Consecutive Years of Dividend Growth: 30
On January 8, Seaport Research launched coverage of Polaris Inc. (NYSE:PII) with a Buy rating and an $83 price target. The firm described Polaris as a producer of high-quality outdoor recreation products and said it remains constructive on the US consumer and broader outdoor activity trends. Seaport also noted that conditions in the powersports market appear to be gradually improving, as dealer inventory levels start to normalize. Overall, the firm believes Polaris shares look undervalued and argues the market isn’t fully recognizing the company’s earnings potential.
Separately, in October, Polaris announced plans to carve out Indian Motorcycle and run it as a standalone business. The company has signed a definitive agreement to sell a majority stake in Indian Motorcycle to Carolwood LP, a Los Angeles-based private equity firm founded in 2014. For context, Indian Motorcycle generated roughly $478 million, or about 7% of Polaris’ revenue, over the trailing twelve months ended June 30, 2025.
Polaris expects the deal to be financially beneficial once completed. Management said the transaction should lift annualized adjusted EBITDA by about $50 million and add roughly $1.00 to adjusted EPS. Closing is expected in Q1 2026, assuming standard closing conditions are met. Polaris also said it plans to keep a small equity stake in Indian Motorcycle after the transaction and expressed confidence in the brand’s future under Carolwood’s ownership.
Polaris Inc. (NYSE:PII) designs, engineers, manufactures, and markets a wide range of powersports vehicles.
7. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Holders: 37
Consecutive Years of Dividend Growth: 30
RenaissanceRe Holdings Ltd. (NYSE:RNR) is among the best dividend aristocrat stocks to invest in.
On January 8, TD Cowen nudged up its price target on RenaissanceRe Holdings Ltd. (NYSE:RNR) to $280 from $278 and maintained a Hold rating. The firm said the move came after updating its model ahead of the company’s Q4 earnings report.
Barclays also updated its view that same day, lifting its price target on RenaissanceRe Holdings Ltd. (NYSE:RNR) to $304 from $278 while keeping an Equal Weight rating. Barclays adjusted as part of its broader 2026 outlook for North American property and casualty insurers. The firm noted that pricing has started to soften in both commercial insurance and reinsurance markets, while personal lines look somewhat more resilient. It also flagged that brokers could face tougher organic growth conditions, and said investors should stay selective across the group.
RenaissanceRe’s latest reported quarter showed strong profitability. In Q3 2025, the company posted $770 million in underwriting income, nearly double what it earned in Q3 2024. It also generated $305 million in retained net investment income and $102 million in fee income. Management added that since Q2 2024, RenaissanceRe has returned more than $1.7 billion to shareholders through buybacks, including the repurchase of over 850,000 shares in Q3 alone for $205 million.
RenaissanceRe Holdings Ltd. (NYSE:RNR) is a global reinsurance and insurance company focused on balancing risk-taking with disciplined capital management.
6. Reinsurance Group of America, Incorporated (NYSE:RGA)
Number of Hedge Fund Holders: 41
Consecutive Years of Dividend Growth: 15
On January 8, Barclays reduced its price target on Reinsurance Group of America, Incorporated (NYSE:RGA) to $237 from $251, while still maintaining an Overweight rating. The firm said it is heading into 2026 feeling “cautiously optimistic” about the life insurance space. Barclays believes the group’s strong capital levels, steady cash generation, and ongoing consolidation activity can help offset pressure from spread compression and higher tech-related spending. The target change was part of Barclays’ broader 2026 outlook refresh.
In other news, in October, RGA announced a strategic investment in FoxPath Capital Partners, a New York-based credit secondaries specialist. The company also made a multi-fund anchor commitment to the firm. RGA said the move gives it greater access to high-quality private assets in the expanding credit secondary market, while also improving portfolio flexibility and creating additional long-term investment opportunities.
Reinsurance Group of America, Incorporated (NYSE:RGA) is a global leader in life and health reinsurance, offering solutions that help clients manage risk and optimize capital.
5. Westlake Corporation (NYSE:WLK)
Number of Hedge Fund Holders: 42
Consecutive Years of Dividend Growth: 20
On January 8, BofA analyst Matthew DeYoe slightly lowered Westlake Corporation (NYSE:WLK)’s price target to $82 from $83, while keeping a Buy rating on the stock. The analyst said the change was part of BofA’s broader refresh of price targets across the Chemicals names it covers.
BofA’s overall view on the sector remains cautious. The firm expects commodity chemicals to deal with another year of worsening oversupply, while specialty chemicals continue to operate in a choppy demand environment. It also described the agricultural setup as more uneven. That said, BofA noted there are still a few reasons to stay optimistic, pointing to potential catalysts such as PMI indicators turning more supportive, possible interest rate cuts, and the chance that China rationalizes industry capacity. Still, the firm warned that these drivers are fairly new and not yet dependable.
Separately, on January 5, Westlake Corporation (NYSE:WLK) announced it had completed its acquisition of the global compounding solutions businesses of the ACI/Perplastic Group. ACI, which is based in Portugal, is known for producing specialty materials, particularly for the wire and cable markets. Westlake said the deal expands Westlake Global Compounds’ footprint into Portugal, Romania, and Tunisia, while also adding to its existing presence in Mexico.
Jean-Marc Gilson, President and Chief Executive Officer of Westlake, made the following statement:
“The integration of ACI with Westlake’s compounding operations represents a strong strategic alignment, offering significant opportunities to further strengthen our Housing & Infrastructure Products (HIP) business. This acquisition will enhance the reach of Westlake Global Compounds and introduce new specialty products and advanced technologies to our portfolio.”
Westlake is a global manufacturer and supplier of materials and specialty products used across a wide range of everyday applications.
4. Unum Group (NYSE:UNM)
Number of Hedge Fund Holders: 42
Consecutive Years of Dividend Growth: 17
Unum Group (NYSE:UNM) is one of the best dividend aristocrat stocks to invest in.
On January 8, Barclays raised its price target on UNM to $96 from $94 and maintained an Overweight rating. The firm said it remains “cautiously optimistic” on life insurers as the industry heads into 2026. Barclays pointed to strong capital positions, solid cash flow generation, and continued consolidation as positives that can help offset pressure from spread compression and higher technology spending. The update was part of Barclays’ broader set of rating and price target changes tied to its 2026 outlook.
In other news, on December 4, Unum announced that its board approved a new share repurchase authorization of up to $1 billion, which started on January 1, 2026. The company’s current buyback program runs through December 31, 2025, after which it expires, and any repurchases going forward will fall under the new plan.
Unum Group (NYSE:UNM) is an international provider of workplace benefits and related services. Through its Unum and Colonial Life brands, the company offers products such as disability, life, accident, critical illness, dental, and vision coverage, along with leave management support and behavioral health services.
3. Bank OZK (NASDAQ:OZK)
Number of Hedge Fund Holders: 42
Consecutive Years of Dividend Growth: 15
On January 7, TD Cowen lowered its price target on Bank OZK (NASDAQ:OZK) to $56 from $61, while keeping a Buy rating on the stock. The change came as part of the firm’s broader Q4 earnings preview for the banking sector. TD expects “solid” Q4 results across the group, supported by ongoing balance sheet growth, repricing tailwinds, and what it sees as a “likely more dovish” Federal Reserve chair in 2026. The analyst said these “durable tailwinds” could help lift bank stocks through 2026.
That same day, Morgan Stanley analyst Manan Gosalia also reduced the firm’s price target on Bank OZK to $59 from $63, while maintaining an Equal Weight rating. Morgan Stanley pointed to renewed investor attention on the bank’s exposure to life sciences lending. While the firm does not expect any immediate shift, since OZK has previously said sponsors are still supporting their properties, the analyst noted that any negative credit developments could weigh on the stock around earnings day.
Bank OZK (NASDAQ:OZK) is a regional bank that offers a broad range of financial products and services.
2. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)
Number of Hedge Fund Holders: 44
Consecutive Years of Dividend Growth: 30
On January 12, Morgan Stanley analyst Angel Castillo trimmed the firm’s price target on Lincoln Electric Holdings, Inc. (NASDAQ:LECO) to $208 from $209 and maintained an Underweight rating on the stock. The update came after Morgan Stanley made routine model changes in its weekly note covering the Machinery and Construction group.
Earlier, on December 16, Stifel analyst Nathan Jones lowered Stifel’s price target on Lincoln Electric to $252 from $265, while keeping a Hold rating. In the note, the analyst said growth in diversified industrials during 2025 has mostly been driven by tariff-related price increases, which again highlights the group’s strong pricing power. Volumes, meanwhile, have generally been flat to slightly lower. Looking ahead, the firm expects 2026 volume growth to improve mainly as inventory destocking fades, along with pricing carryover supporting low- to mid-single-digit revenue growth next year.
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is best known for its welding products, industrial automation solutions, and cutting equipment. The company’s strategy leans on steady customer demand and tight cost control. Its strong brand and reputation for product quality help support customer loyalty and keep it well positioned in a mature industry. Ongoing investment in technology, along with a skilled workforce, also adds to its competitive edge.
1. Evercore Inc. (NYSE:EVR)
Number of Hedge Fund Holders: 45
Consecutive Years of Dividend Growth: 18
On January 8, Keefe Bruyette raised its price target on Evercore Inc. (NYSE:EVR) to $425 from $396 and maintained an Outperform rating on the stock.
A day earlier, on January 7, Wolfe Research also increased its price target on Evercore to $406 from $367 and reiterated an Outperform rating. The call was part of Wolfe’s Top 10 Themes for 2026 report covering Banks, Brokers, and Alternative Managers. Going into 2026, Wolfe said Retail Brokers and alternative managers are its preferred subsectors, and highlighted Evercore as one of its top picks across the space.
In December, Evercore Inc. (NYSE:EVR) also announced progress on its Middle East expansion. The firm said it received an Arranging License from the Capital Markets Authority in the Kingdom of Saudi Arabia and will open an office in Riyadh to provide independent advisory services to clients in the Kingdom. The new office will be led by Mohammed Aldekmary, who will be based in Riyadh as CEO of Saudi Arabia and Head of Arranging. Aldekmary joined Evercore in May 2025 and previously spent time in the firm’s Dubai office as part of its Middle East coverage team. Evercore first opened its Dubai office in 2017.
Evercore Inc. (NYSE:EVR) is an investment banking and investment management company, operating through Investment Banking & Equities and Investment Management segments.
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