In this article, we will take a look at the 14 Stocks on the Verge of Becoming Dividend Aristocrats.
A February 26 report from CNBC said investors looking for stability have increasingly turned to companies with consistent dividend payments. Wolfe Research pointed to a group of emerging dividend aristocrats that could provide that stability. Concerns about artificial intelligence and its potential to disrupt business models across many industries have weighed on the stock market in 2026. Against that backdrop, steady dividend payers have started to draw more attention. Chris Senyek said this group of stocks “can be a good place to ‘hide’ in the event of an economic slowdown or recessionary environment.” He also noted in a report that “This cohort of stocks has generally outperformed heading into and out of recession.”
Dividend-paying companies have been performing better than the broader market so far this year. As of the close on March 9, the S&P 500 Dividend Aristocrats had gained more than 5%. Over the same period, the broader S&P 500 had fallen by nearly 1%. Senyek said the stronger performance reflects “investor preference for non-Tech companies, as well as dividends’ defensive nature.” He added that software stocks, in particular, have faced pressure as investors worry that artificial intelligence could disrupt their businesses.
A recent report from S&P Global Market Intelligence suggests dividend growth in the United States may continue. Total dividend payouts across the US market are projected to rise by 5.4% in 2026, reaching about $820 billion. Companies in the S&P 500 are expected to drive much of that increase, with their dividends forecast to grow 6.4% to roughly $725 billion. Across the broader market, nearly half of the expected dividend growth is projected to come from four sectors: energy, banks, financial services, and capital goods. Each of those sectors is expected to increase dividends at a pace of about 6% to 7% year over year.
Given this, we will take a look at some of the best future dividend aristocrat stocks.
Our Methodology:
For this list, we selected companies from the S&P 500 that have raised their dividends for 13 consecutive years or more and are on the steady path to becoming dividend aristocrats. The stocks are ranked in ascending order of their consecutive years of dividend growth. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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. Intercontinental Exchange, Inc. (NYSE:ICE)
Consecutive Years of Dividend Growth: 13 Years
On March 6, Brian Bedell of Deutsche Bank upgraded Intercontinental Exchange, Inc. (NYSE:ICE) to Buy from Hold. The firm set a $188 price target on the stock.
A day earlier, on March 5, Intercontinental Exchange announced a strategic partnership and investment in OKX. The platform serves more than 120 million users worldwide. The investment values OKX at about $25 billion. The companies did not disclose the financial terms. As part of the agreement, ICE will take a seat on OKX’s Board of Directors. The two sides also plan to build a broader collaboration. The goal is to combine OKX’s blockchain infrastructure and global user base with ICE’s market technology, regulatory experience, and institutional network.
Both companies plan to explore joint work in several areas. These include market structure, clearing and risk management, data services, and institutional access to digital assets.ICE also intends to license OKX’s spot crypto prices. The company plans to use that data to launch U.S.-regulated crypto futures, giving institutions a compliant way to gain exposure to digital assets. If regulators approve, OKX may also give its users access to ICE’s U.S. futures markets and tokenized equities listed on the New York Stock Exchange.
The partnership will also focus on building a stronger institutional infrastructure. That includes improved clearing and risk systems, multi-chain custody solutions, and better connectivity for institutions entering digital asset markets.
Intercontinental Exchange, Inc. (NYSE:ICE) provides financial technology and data services across major asset classes. Its platforms and tools help customers improve transparency and efficiency in their trading and workflow systems.
13. CME Group Inc. (NASDAQ:CME)
Consecutive Years of Dividend Growth: 14 Years
On March 5, Hans Engel of Erste Group upgraded CME Group Inc. (NASDAQ:CME) to Buy from Hold. A day earlier, on March 4, Argus Research downgraded CME Group to Hold from Buy. The firm expects “muted growth” in several parts of the company’s business. These include equity index, metals, crypto, and micro contracts traded by retail investors. At the same time, the analyst believes stronger activity in agriculture and prediction markets could help offset some of that slowdown, according to the research note.
On March 9, CME Group reported a new milestone in its energy trading business. The company said its energy complex reached a single-day volume record of 8.3 million contracts on March 6. That figure surpassed the previous daily record of 7.9 million contracts set just days earlier, on March 3, 2026. Trading activity across the complex produced several additional records that day. Energy options volume reached 1.43 million contracts, crude oil complex volume climbed to 5.73 million contracts, and Micro Crude Oil futures also hit a record, with 748,729 contracts traded.
Activity in refined products was also strong. CME Group Refined Products, driven by RBOB Gasoline futures and New York Harbor Ultra-low Sulfur Diesel futures, reached a new single-day record of 1.25 million contracts on March 3, 2026. All five of the top-performing volume days for the refined products complex occurred during the past week. That surge pushed the five-day average volume to 1.09 million contracts.
CME Group Inc. (NASDAQ:CME) operates a global derivatives marketplace. Its platforms allow clients to trade futures, options, cash products, and over-the-counter markets. The company’s exchanges list benchmark products across major asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
12. Broadcom Inc. (NASDAQ:AVGO)
Consecutive Years of Dividend Growth: 15 Years
On March 5, RBC Capital Markets raised its price recommendation on Broadcom Inc. (NASDAQ:AVGO) to $360 from $340. The firm reiterated a Sector Perform rating on the shares. The analyst said the company’s Q2 outlook looked solid. The commentary around FY27 was even more bullish, according to the research note. RBC also pointed to Broadcom’s history of consistent execution. Based on that track record, the firm said it sees little reason to question management’s visibility.
During the company’s Q4 2025 earnings call, CEO Hock Tan said total revenue for Q1 2026 reached a record $19.3 billion. That marked a 29% increase from a year earlier. Tan said the stronger-than-expected results were driven largely by higher growth in AI semiconductors. He also reported that consolidated adjusted EBITDA reached a record $13.1 billion for the quarter, equal to 68% of total revenue.
Looking ahead, Tan said the company expects that momentum to continue as its custom AI XPUs move into the next stage of deployment with five customers. He said Broadcom expects consolidated revenue of about $22 billion in Q2 2026. That would represent roughly 47% year-on-year growth. Tan also highlighted the sharp rise in AI semiconductor sales. AI semiconductor revenue increased 106% from the prior year to $8.4 billion, well above the company’s outlook.
He said the trend could strengthen further in Q2. Semiconductor revenue is projected to reach $14.8 billion, which would mark a 76% increase from a year earlier. Much of that growth is expected to come from AI-related products. The company expects AI revenue to rise about 140% year-on-year to $10.7 billion.
Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductors, enterprise software, and security solutions. The company operates through two main segments: semiconductor solutions and infrastructure software.
11. BlackRock, Inc. (NYSE:BLK)
Consecutive Years of Dividend Growth: 16 Years
On March 6, Evercore ISI lowered its price recommendation on BlackRock, Inc. (NYSE:BLK) to $1,235 from $1,275. It reiterated an Outperform rating on the shares. The firm said it adjusted price targets across the group after taking an “early look” at February and Q1 traditional asset manager flows.
Earlier in the week, on March 3, Reuters reported that BlackRock sold its remaining 11.4% stake in Spanish energy company Naturgy. The sale raised about 2.79 billion euros, or roughly $3.25 billion, according to a market filing. The investment firm sold 110,753,554 shares at 25.20 euros each. Naturgy’s closing price on March 2 was 26.76 euros.
BlackRock appointed J.P. Morgan and Goldman Sachs to manage the sale through an accelerated bookbuild. The move follows an earlier transaction in December, when BlackRock sold about a 7% stake in Naturgy for roughly $2 billion. BlackRock originally became a shareholder in the utility after acquiring Global Infrastructure Partners in 2024. The infrastructure investor previously held a stake in Naturgy.
BlackRock, Inc. (NYSE:BLK) is an investment management firm that provides investment and technology services to institutional and retail clients. Its platform includes active strategies, private markets, index investing, and cash management solutions across asset classes, allowing clients to build portfolios and tailor asset allocation strategies.
10. Stryker Corporation (NYSE:SYK)
Consecutive Years of Dividend Growth: 17 Years
On March 9, Stryker Corporation (NYSE:SYK) announced the launch of its SmartHospital Platform. The system is designed to connect hospital devices, data, and care teams within one integrated ecosystem. The company introduced the platform ahead of the HIMSS Global Conference & Exhibition 2026. The launch reflects an expansion of Stryker’s digital healthcare offerings.
The platform is being developed through Stryker’s newly formed Smart Care business. This unit focuses on helping hospitals move forward with digital transformation. The system is meant to address several challenges hospitals face today. These include fragmented systems, staffing shortages, and rising patient volumes. The goal is to deliver insights that help teams act faster while improving day-to-day workflow.
The SmartHospital Platform connects medical devices and data, so care teams can coordinate more easily across patient transport, treatment, and recovery. It also includes voice-activated communication tools such as the Sync Badge. These tools help hospital staff share information and respond to alerts more efficiently.
The platform also uses the Engage middleware engine to prioritize alarms and notifications. This approach aims to reduce communication silos inside hospitals. It supports virtual nursing and monitoring features as well, which can help reduce administrative tasks for bedside staff. The system also uses ambient sensors, computer vision, AI, and contextual data. Together, these technologies are intended to create a more responsive and intelligent care environment.
Stryker Corporation (NYSE:SYK) develops medical technology products and services used across healthcare systems. The company operates through two segments: MedSurg and Neurotechnology, and Orthopaedics. Its products are designed to support better patient care and healthcare outcomes.
9. American Electric Power Company, Inc. (NASDAQ:AEP)
Consecutive Years of Dividend Growth: 17 Years
On March 5, Evercore ISI raised its price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $153 from $137 and maintained an Outperform rating on the shares. The firm updated estimates for many power and utility companies it covers after reviewing results from the Q4 earnings season.
A few days earlier, on March 2, Argus Research also raised its price objective on American Electric Power. The firm lifted the target to $140 from $128 and kept a Buy rating. The analyst noted that the company is one of the largest electricity providers in the United States, with operations across 11 states. According to the research note, the company’s broad service footprint helps steady earnings and reduce the impact of unfavorable temperature-related demand.
During its Q4 2025 earnings call, the company reaffirmed its 2026 full-year operating earnings guidance of $6.15 to $6.45 per share. Management also reiterated its long-term earnings growth outlook. The company expects a 7% to 9% growth rate from 2026 through 2030. Executives said the company’s $72 billion five-year capital plan is based on an earlier projection for 28 gigawatts of incremental demand. They also noted that $5 billion to $8 billion in confirmed or endorsed generation and transmission projects would come on top of that outlook.
American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company. Its operating utilities provide generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Consecutive Years of Dividend Growth: 17 Years
On March 6, UBS raised its price recommendation on Bristol-Myers Squibb Company (NYSE:BMY) to $70 from $65 and maintained a Buy rating on the shares. The analyst said Phase III data for milvexian in stroke prevention and atrial fibrillation, expected in the second half of the year, represents one of the company’s key catalysts in 2026, according to a research note.
On March 9, Reuters reported that the company said its experimental drug for a rare form of blood cancer improved survival in a late-stage trial, meeting the study’s main goal. The oral drug mezigdomide, used in combination with carfilzomib and dexamethasone, showed a significant improvement in patients with relapsed multiple myeloma without the disease worsening. The results were compared with those of patients treated with carfilzomib and dexamethasone alone.
Mezigdomide belongs to a new class of drugs known as CELMoD. These drugs target the cereblon protein and help the body clear myeloma cells more quickly and effectively than older treatments. The company said the safety findings were consistent with the known profile of mezigdomide and the combination regimen. Patients will continue to be monitored for survival and safety.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical firm focused on discovering, developing, and delivering medicines for serious diseases. Its research and development work spans several areas, including oncology, hematology, immunology, cardiovascular disease, and neuroscience.
7. Union Pacific Corporation (NYSE:UNP)
Consecutive Years of Dividend Growth: 19 Years
On March 6, Baird upgraded Union Pacific Corporation (NYSE:UNP) to Outperform from Neutral. It also raised its price target to $311 from $239. The firm said it recommends buying the shares on pullbacks. According to the analyst, Union Pacific has likely under-promised on the cost synergies tied to a potential transaction involving Norfolk Southern. Those savings could “easily” exceed the initial merger application estimate of $1B, the research note said. Baird also said investors should consider building exposure to Union Pacific shares over the next nine months, particularly during periods of weakness, as sentiment could improve heading into 2026.
A few days earlier, on March 4, BofA raised its price objective on Union Pacific to $297 from $266 and maintained a Buy rating. The firm said it updated price targets across the transportation and railroad companies under its coverage. The analyst noted that operating performance across the group remains strong. Several indicators also point to a possible turning point in the broader industrial economy.
Union Pacific Corporation (NYSE:UNP) operates primarily through its main subsidiary, Union Pacific Railroad Company. The railroad network spans more than 23 states across the western two-thirds of the United States and plays a key role in moving goods through the global supply chain.
6. Verizon Communications Inc. (NYSE:VZ)
Consecutive Years of Dividend Growth: 19 Years
On March 9, Maher Yaghi of Scotiabank upgraded Verizon Communications Inc. (NYSE:VZ) to Outperform from Sector Perform. The firm also raised its price target to $54.50 from $50.25 after meetings with management. The analyst said Verizon’s momentum in subscriber additions and cost improvements appears “strong,” according to the research note. Scotiabank also expects further cost reductions in 2027 and 2028. The firm believes price cuts, combined with lower churn in wireless and continued broadband growth, could help the company deliver stronger revenue growth. At current levels, the analyst described the shares as “cheap.”
In a CNBC report published on February 26, Wolfe Research noted that Verizon raised its dividend in September for the 19th consecutive year. Jonathan Kees of Daiwa Capital Markets pointed to the steady profits, dividend payments, and share price stability that telecom companies like Verizon can offer investors. He made the following remark:
“In a period of economic and market uncertainty, we see the telco industry’s steady business, stable customer base & predictable financial performance as a welcome haven for anxious investors. We see Verizon as having the best risk-reward, justifying its upgrade.”
He also noted that among the three major US telecom companies, Verizon has the longest track record of paying dividends and maintains a “singular focus” on increasing those payments.
Verizon Communications Inc. (NYSE:VZ) operates as a holding company. Through its subsidiaries, the company provides communications, technology, information, and streaming services to consumers, businesses, and government customers.
5. Costco Wholesale Corporation (NASDAQ:COST)
Consecutive Years of Dividend Growth: 21 Years
On March 6, Bob Drbul of BTIG raised the firm’s price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,125 from $1,115 and maintained a Buy rating after the company reported a Q2 earnings beat. The analyst said gross margin expanded by 17 basis points during the quarter. The improvement was supported by 19 basis points of favorable developments in other parts of the business. Membership income also remained strong, rising 14%, according to the research note. BTIG added that traffic and digital performance stayed healthy. Comparable traffic increased 3.1% worldwide.
During the company’s fiscal Q2 2026 earnings call, CEO Ron Vachris spoke about the changing tariff environment and the company’s approach to protecting member pricing. He said the company has been working to limit the effect of tariffs on product prices. Several strategies are being used, including shifting production locations, consolidating global purchasing, and increasing sourcing through the Kirkland Signature private-label brand.
Vachris also noted that the company reduced prices on several key items during the second quarter. These included eggs, cheese, coffee, and certain paper products as inflation in those commodities eased. On expansion, he said Costco opened four warehouses during the quarter. The openings included one relocation and one new US location, along with two additional business centers in Canada. Those additions brought the company’s global warehouse count to 924. Vachris said the company expects about 28 net new warehouse openings in fiscal 2026. Over the longer term, Costco aims to open more than 30 new locations each year.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that offer nationally branded and private-label products across a wide range of categories. The company buys most of its merchandise directly from suppliers and routes it to cross-docking consolidation depots or directly to its warehouses.
4. Texas Instruments Incorporated (NASDAQ:TXN)
Consecutive Years of Dividend Growth: 22 Years
On March 5, speaking at the Morgan Stanley Technology, Media & Telecom Conference, Haviv Ilan, chairman, president, and CEO of Texas Instruments Incorporated (NASDAQ:TXN), discussed recent trends in the company’s industrial business.
He said the environment looks different from what the company saw a year ago. During the fourth quarter, industrial revenue grew nearly 20% year over year. What stood out, he explained, was how broad the demand had become. Earlier, growth was concentrated in areas like aerospace, defense, and energy infrastructure, many of which are tied to AI-related investments. More recently, the company has started to see strength returning in traditional industrial markets.
Areas such as factory automation, medical equipment, and building automation have begun to pick up again. Ilan suggested that a rebound was expected, given how far these segments had fallen below their long-term trend. He also pointed to the improvement seen month by month. The trend strengthened as the quarter progressed, and the early part of the first quarter has continued in the same direction.
Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, tests, and sells analog and embedded processing semiconductors. Its chips are used across several end markets, including industrial systems, automotive applications, personal electronics, communications equipment, and enterprise infrastructure.
3. United Parcel Service, Inc. (NYSE:UPS)
Consecutive Years of Dividend Growth: 23 Years
On March 6, BofA lowered its price recommendation on United Parcel Service, Inc. (NYSE:UPS) to $112 from $118 and maintained a Neutral rating on the shares. The adjustment followed comments from UPS CFO Brian Dykes at an industry conference. Dykes reiterated the company’s outlook for 2026. Management still expects revenue to increase slightly, while earnings per share are projected to remain roughly flat for the year.
At the same time, the firm said the comments pointed to more pressure on first-quarter results than previously expected. The analyst also noted that the earnings profile for the year now appears more back-end loaded. After the event, Bank of America lowered its Q1 EPS estimate by 16% to $1.01 from $1.20. The firm raised its Q2 EPS estimate by 9% to $1.71 from $1.57. It also made a small adjustment to its full-year outlook, reducing its FY26 EPS forecast by about 1% to $7.05 from $7.10.
United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics and transportation services to customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of domestic air and ground transportation services across the United States.
2. NIKE, Inc. (NYSE:NKE)
Consecutive Years of Dividend Growth: 24 Years
On March 5, RBC Capital Markets reiterated an Outperform rating on NIKE, Inc. (NYSE:NKE). The firm maintained its $78 price target ahead of the company’s Q3 results. The analyst said Nike’s recovery in China remains an important factor shaping investor sentiment. That trend is expected to play out over the next one to two years, according to the research note. The firm also pointed to the strong execution currently seen at Adidas as a comparison. Based on that example, RBC said there is no clear reason Nike cannot return to growth.
A March 5 report from Reuters said the company expects to record about $300 million in pre-tax charges tied to severance costs as part of a restructuring effort. CEO Elliott Hill is leading the initiative as the company works to stabilize margins and refresh its product lineup in an effort to revive sales.
Nike cut about 775 jobs in the United States in January as part of a push to accelerate automation. The company’s Converse brand has also been reducing corporate roles. The changes are meant to better align its operating model with the parent company, according to a February Reuters report. Nike said most of the charges will be tied to employee severance costs. They are expected to be recorded in the third quarter of fiscal 2026. The company also noted in a regulatory filing that additional actions could follow, which may lead to further charges.
NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories used in sports and fitness activities. The company operates across several regions, including North America, Europe, the Middle East and Africa, Greater China, and Asia Pacific and Latin America.
1. The Southern Company (NYSE:SO)
Consecutive Years of Dividend Growth: 24 Years
On March 6, Shelby Tucker of TD Cowen raised the firm’s price objective on The Southern Company (NYSE:SO) to $112 from $108. It maintained a Buy rating on the shares. The firm said the company’s loan guarantee from the U.S. Department of Energy represents both a financing win and political support for its strategy that “growth drives affordability.” According to the analyst, the company argues that large increases in electricity demand can benefit customers. Minimum bill contracts help cover system costs and ease pressure on electricity rates. With affordability concerns appearing less central for now, the firm believes the company may deserve a higher valuation premium.
On February 26, Reuters reported that the U.S. Department of Energy offered a $26.54 billion loan to subsidiaries of Southern Company to improve power grid reliability. The financing marks the largest loan ever issued by the department’s loan office. The funding is expected to help customers in Georgia and Alabama save more than $7 billion. Part of those savings comes from the company’s commitment to freeze electricity rates for three years.
The loans to Georgia Power and Alabama Power will support more than 16 gigawatts of new and upgraded power capacity. Projects tied to the funding include natural gas generation, upgrades at nuclear facilities, modernization of hydropower assets, energy storage development, and more than 1,300 miles of transmission improvements.
The Southern Company (NYSE:SO) is an energy provider with several operating subsidiaries. The company owns three traditional electric utilities, along with Southern Power Company and Southern Company Gas. These utilities provide electricity to retail customers across the Southeast and also serve wholesale customers in the region.
While we acknowledge the potential of SO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SO and that has 100x upside potential, check out our report about the cheapest AI stock.
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