In this article, we will take a look at some of the best dividend aristocrat stocks to invest in.
Dividends are a way for companies to share a portion of their profits with investors. Each share of stock entitles its holder to a specific dividend payment. These payments are made on a regular schedule, usually in cash or additional company stock, and are typically distributed monthly, quarterly, or annually. Because of this, dividend-paying stocks can be seen as a form of passive income.
Mike Schenk, deputy chief advocacy officer for policy analysis and chief economist at the Credit Union National Association, explained that many companies offering high-dividend stocks tend to follow business models that remain strong during periods of rising prices, which in turn supports their profitability. He made the following comment:
“Let’s face it, consumers have to heat (or cool) their homes, drive to work and eat — even when prices are rising quickly. Companies in the energy sector, those in the natural resources arena and those in the food and consumer staples sectors generally benefit from strong pricing power and cost management, allowing them to raise prices, maintain demand and boost profits.”
Schenk pointed out that history supports this pattern, noting that dividend payments have traditionally made up about 40% of total stock market returns. He added that during times of inflation, investors often benefit from holding stocks that regularly raise their dividend payouts.
His overall advice for investors is to focus on the long term, build a diversified portfolio, and avoid trying to time the market or make impulsive investment decisions. Given this, we will take a look at some of the best dividend growth stocks to invest in.
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 15 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).
15. PPG Industries, Inc. (NYSE:PPG)
5-Year Average Annual Dividend Growth Rate: 5.85%
PPG Industries, Inc. (NYSE:PPG) is one of the best dividend aristocrat stocks to buy now.
On November 3, Mizuho reduced its price target on PPG Industries, Inc. (NYSE:PPG) to $118 from $120 while maintaining an Outperform rating on the stock, according to a report by The Fly. The firm noted that it is adjusting its estimates for both quarterly trends and medium-term projections to reflect current market conditions and management insights shared during the early part of the September-quarter earnings season.
In its third-quarter 2025 results, PPG Industries, Inc. (NYSE:PPG) reported strong double-digit organic growth in its aerospace, protective and marine, and packaging coatings segments, which helped offset softer demand in automotive refinish coatings due to earlier order pull-forwards. Architectural coatings remained steady overall, with gains in Mexico offset by slight declines in Europe.
CEO Timothy Knavish announced more than $500 million in new investments in the aerospace segment, including the development of a new aerospace manufacturing facility expected to open in 2027, with additional projects under consideration. The company reaffirmed its full-year guidance for adjusted earnings per diluted share between $7.60 and $7.70.
PPG Industries, Inc. (NYSE:PPG) produces and distributes paints, coatings, and specialty materials for markets such as transportation, construction, and consumer goods.
14. Nucor Corporation (NYSE:NUE)
5-Year Average Annual Dividend Growth Rate: 6.44%
Nucor Corporation (NYSE:NUE) is among the best dividend aristocrat stocks to invest in.
On October 30, Citi increased its price target on Nucor Corporation (NYSE:NUE) to $180 from $150 while maintaining a Buy rating on the stock, as reported by The Fly.
Nucor Corporation (NYSE:NUE) had released its third-quarter 2025 results on October 27, reporting revenue of $8.52 billion, marking a 14.47% increase from the same period a year earlier. During the quarter, the company ramped up production at two newly completed bar mill projects, progressed with its sheet steel and coating expansions, and began pole production at its Alabama Towers & Structures facility. Despite its ongoing phase of capital investments, Nucor continued to uphold one of the strongest balance sheets among major North American steel producers and returned nearly $1 billion to shareholders year-to-date, representing over 70% of net earnings through the third quarter.
By the close of the quarter, Nucor Corporation (NYSE:NUE) held $2.75 billion in cash, cash equivalents, and short-term investments. The company also maintained its long-standing reputation as a dependable dividend payer, marking 210 consecutive quarters of dividend payments.
Nucor Corporation (NYSE:NUE) is recognized as one of the safest, most efficient, and most profitable steel and steel products manufacturers globally.
13. Air Products and Chemicals Inc. (NYSE:APD)
5-Year Average Annual Dividend Growth Rate: 6.63%
Air Products and Chemicals Inc. (NYSE:APD) is one of the best dividend aristocrat stocks to invest in.
On November 7, RBC Capital reduced its price target on Air Products and Chemicals Inc. (NYSE:APD) to $325 from $350 while maintaining an Outperform rating on the stock, according to a report by The Fly. The firm noted that shares rallied after earnings, reflecting growing confidence in the company’s turnaround strategy. However, the price target was revised downward as analysts await further clarity on the LA Blue project.
Air Products and Chemicals Inc. (NYSE:APD) aims to play a leading role in addressing global energy and environmental challenges through advancements in gasification, carbon capture, and clean hydrogen. The company has several major hydrogen projects in progress that are expected to drive long-term growth.
Among these, construction of the NEOM Green Hydrogen Project in Saudi Arabia is already 80% complete, with production slated to begin by 2027. The company is also developing an $8 billion blue hydrogen project in Louisiana, a $3.3 billion project in Canada, and a smaller $360 million green hydrogen facility in Arizona that could start operations in 2026.
Air Products and Chemicals Inc. (NYSE:APD), a global leader in industrial gases and LNG processing technology, continues to strengthen its position in the clean energy sector.
