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.
12. Caterpillar Inc. (NYSE:CAT)
5-Year Average Annual Dividend Growth Rate: 7.23%
Caterpillar Inc. (NYSE:CAT) is among the best dividend aristocrat stocks to buy now.
On November 6, HSBC upgraded its rating on Caterpillar Inc. (NYSE:CAT) to Buy from Hold and raised the price target to $660 from $405, according to a report by The Fly. The firm cited a strong third-quarter performance driven by higher volumes and a 25% year-over-year surge in order growth, largely supported by demand in power generation. The analyst noted that the company’s expanding turbine business, particularly its growing exposure to data centers, and new capacity investment plans signal stronger long-term growth potential, justifying the upgrade.
During the third quarter of 2025, Caterpillar Inc. (NYSE:CAT)’s Power Generation segment delivered revenue of $2.63 billion, up 31% from the same quarter a year earlier, fueled by increased sales of large reciprocating engines used in data centers. Overall, quarterly sales and revenue rose 10% to $17.6 billion from $16.1 billion in the prior year, reflecting higher sales volumes and stronger end-user demand.
Caterpillar Inc. (NYSE:CAT) generated $3.7 billion in operating cash flow for the quarter and closed with $7.5 billion in enterprise cash. The company returned $0.7 billion to shareholders through dividends and spent an additional $0.4 billion on share repurchases.
Caterpillar Inc. (NYSE:CAT) is the global leader in manufacturing construction and mining equipment, industrial gas turbines, off-highway diesel and natural gas engines, and diesel-electric locomotives.
11. Archer-Daniels-Midland Company (NYSE:ADM)
5-Year Average Annual Dividend Growth Rate: 7.26%
Archer-Daniels-Midland Company (NYSE:ADM) is one of the best dividend aristocrat stocks to invest in.
On November 4, JPMorgan downgraded Archer Daniels Midland (ADM) to Underweight from Neutral and reduced its price target to $59 from $61, as reported by The Fly. The firm noted that while the company’s third-quarter earnings surpassed estimates, the lowered guidance suggests ongoing profit challenges that go beyond uncertainty surrounding US biofuel policies and trade relations with China. The analyst added that ADM’s Carbohydrate Solutions segment continues to face pressure due to weaker demand for packaged foods, particularly those containing sugar additives.
In its third-quarter report, Archer-Daniels-Midland Company (NYSE:ADM) highlighted that clarity around biofuel regulations and developments in global trade policy could serve as key demand drivers for the industry moving forward. The company posted quarterly revenue of $20.3 billion, marking a 2.18% increase from the same period last year. Year-to-date, ADM generated $5.8 billion in operating cash flow and $2.1 billion in cash flow from operations before working capital adjustments.
Despite near-term challenges, analysts remain optimistic about Archer-Daniels-Midland Company (NYSE:ADM)’s long-term outlook, citing its economies of scale, integrated operations, and strong positioning in the agricultural value chain. These strengths are expected to support steady growth as global demand for food and biofuels continues to expand.
Archer-Daniels-Midland Company (NYSE:ADM) is a leading global agricultural company engaged in processing and trading food ingredients, animal nutrition products, and biofuels.
10. Cincinnati Financial Corporation (NASDAQ:CINF)
5-Year Average Annual Dividend Growth Rate: 7.70%
Cincinnati Financial Corporation (NASDAQ:CINF) is among the best dividend aristocrat stocks to invest in right now.
On November 4, Keefe Bruyette analyst Meyer Shields raised the price target on Cincinnati Financial Corporation (NASDAQ:CINF) to $180 from $177 while maintaining an Outperform rating on the stock, according to a report by The Fly.
The company released its third-quarter 2025 results on October 27, reporting revenue of $3.73 billion, a 12.3% increase from the same period last year. President and CEO Stephen Spray pointed to strong investment income growth and the positive impact of rebalancing the company’s investment portfolio in the prior year. Consolidated property and casualty net written premiums rose 9% during the quarter. Spray also announced a management change, naming Andy Schnell as Senior Vice President following the retirement of Theresa Hoffer after 23 years with the firm.
Cincinnati Financial Corporation (NASDAQ:CINF) generated $2.2 billion in operating cash flow over the first nine months of 2025 and repurchased approximately 404,000 shares during the quarter at an average price of $149.75 per share. Investment income grew 14% year over year, supported by portfolio rebalancing and strong cash flow from insurance operations.
Cincinnati Financial Corporation (NASDAQ:CINF) is a well-established US insurance provider offering property and casualty coverage through a broad network of independent agents across the country.
9. T. Rowe Price Group, Inc. (NASDAQ:TROW)
5-Year Average Annual Dividend Growth Rate: 7.86%
T. Rowe Price Group, Inc. (NASDAQ:TROW) is one of the best dividend aristocrat stocks to buy now.
On November 3, BofA analyst Craig Siegenthaler raised his price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) from $97 to $105 while maintaining an Underperform rating, as reported by The Fly. The revision followed the company’s stronger-than-expected earnings per share (EPS) of $2.81, which were boosted by non-operating income and tax benefits, though management fees came in below estimates.
For the third quarter of 2025, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported revenue of $1.91 billion, reflecting a 6.88% increase year-over-year but falling short of analysts’ forecasts by about $10 million. The firm’s assets under management (AUM) climbed by $90.4 billion during the quarter, reaching a record $1.77 trillion as of September 30. This growth included the addition of managed account model delivery assets beginning July 1, 2025.
Management highlighted that the company’s new strategic partnership with Goldman Sachs would enable it to introduce innovative investment solutions for clients. In the same period, T. Rowe Price Group, Inc. (NASDAQ:TROW) returned $442 million to shareholders through its regular dividend payments and stock repurchase program.
T. Rowe Price Group, Inc. (NASDAQ:TROW) operates as a leading global investment management firm, providing a diverse range of products and services such as mutual funds, retirement plans, and other investment solutions for both individual and institutional investors.
8. Expeditors International of Washington, Inc. (NYSE:EXPD)
5-Year Average Annual Dividend Growth Rate: 8.02%
Expeditors International of Washington, Inc. (NYSE:EXPD) is among the best dividend aristocrat stocks to invest in.
On November 6, Stifel increased its price target on Expeditors International of Washington, Inc. (NYSE:EXPD) to $130 from $114 while maintaining a Hold rating, according to a report by The Fly. The firm noted that the company continues to benefit from its strong service capabilities and global scale, which have helped it navigate the ongoing volatility in international trade.
In its earnings update, Expeditors International of Washington, Inc. (NYSE:EXPD) acknowledged the persistent headwinds stemming from geopolitical factors and shifting supply-demand dynamics but emphasized that its customer-focused culture and partnerships with carriers position it well to deliver broad logistics solutions. Management also highlighted that while freight markets remain unpredictable, the company’s fee-based service model continues to provide stability across its portfolio.
During the quarter, Expeditors reported an increase in airfreight tonnage, particularly on exports from North and South Asia, and noted steady growth in its key verticals such as technology, pharmaceuticals, and aviation. For the third quarter of 2025, the company generated $2.89 billion in revenue, exceeding Wall Street expectations by $164.2 million.
Expeditors International of Washington, Inc. (NYSE:EXPD) is a leading global logistics provider offering end-to-end supply chain solutions, including freight forwarding, customs brokerage, warehousing, and transportation management.
7. W.W. Grainger, Inc. (NYSE:GWW)
5-Year Average Annual Dividend Growth Rate: 8.06%
W.W. Grainger, Inc. (NYSE:GWW) is one of the best dividend aristocrat stocks to buy now.
On November 7, Barclays analyst Guy Hardwick lifted the firm’s price target on W.W. Grainger, Inc. (NYSE:GWW) to $975 from $963, while maintaining an Underweight rating on the stock following its third-quarter results, as reported by The Fly.
In Q3 2025, W.W. Grainger, Inc. (NYSE:GWW) reported revenue of $4.7 billion, marking a 7% year-over-year increase and surpassing analyst expectations by $14.07 million. The company generated $597 million in operating cash flow during the quarter and invested $258 million in capital expenditures, resulting in free cash flow of $339million. It also returned $399 million to shareholders through dividends and share repurchases, underscoring its continued commitment to shareholder value.
Management emphasized that technology and AI will remain key priorities, helping enhance customer solutions and operational efficiency. The company also revealed plans to exit the UK market, having entered an agreement to sell its Cromwell business.
W.W. Grainger, Inc. (NYSE:GWW) remains one of the largest suppliers of maintenance, repair, and operating (MRO) products and services, catering primarily to businesses and institutions.
6. Linde plc (NASDAQ:LIN)
5-Year Average Annual Dividend Growth Rate: 9.37%
Linde plc (NASDAQ:LIN) is one of the best dividend aristocrat stocks to invest in.
On November 3, Seaport Research analyst Michael Harrison upgraded Linde plc (NASDAQ:LIN) to Buy from Neutral and set a price target of $500, as reported by The Fly. The analyst noted that Linde’s “solid” Q3 results and maintained guidance midpoint highlight its strong execution despite near-term challenges. While the firm remains cautious about the current macro environment, it described Linde as “a high-quality defensive name to weather challenges,” adding that the company is well positioned to seize opportunities as conditions improve. The analyst further mentioned that volume trends “could be turning a corner for the first time in three years.”
In the third quarter of 2025, Linde plc (NASDAQ:LIN) reported solid results, with operating cash flow up 8% and $1.7 billion in free cash flow generated. The company’s $10 billion backlog continues to secure long-term EPS growth and support network expansion. Management emphasized that, despite economic headwinds, employees remain focused on generating shareholder value and maintaining industry-leading performance.
Sales for the quarter totaled $8.6 billion, marking a 3% increase from the prior year and a 1% rise sequentially. Earnings per share came in at $4.21, up 7%, benefiting from a lower share count and reduced tax rate.
Linde plc (NASDAQ:LIN) is a global leader in industrial gases and engineering, providing solutions across industrial, healthcare, and specialty gas markets, along with advanced materials and engineering technologies.
5. Roper Technologies, Inc. (NASDAQ:ROP)
5-Year Average Annual Dividend Growth Rate: 9.99%
Roper Technologies, Inc. (NASDAQ:ROP) is one of the best dividend aristocrat stocks to buy now.
On October 27, Barclays lowered its price target on Roper Technologies, Inc. (NASDAQ:ROP) to $506 from $550 while maintaining an Underweight rating on the stock, according to a report by The Fly. The firm noted that the company’s share buyback “may raise more questions than answers.”
In Q3 2025, Roper Technologies, Inc. (NASDAQ:ROP) reported revenue of $2.02 billion, up 14% from the same period last year, with acquisitions contributing 8% and organic growth at 6%. GAAP net earnings rose 8% to $398 million, while adjusted net earnings increased 12% to $557 million. Operating cash flow grew 15% to $870 million, and free cash flow rose 17% to $842 million. The Board of Directors has authorized the repurchase of up to $3 billion of the company’s common stock.
During the quarter, Roper Technologies, Inc. (NASDAQ:ROP) continued executing its strategy of acquiring businesses that enhance shareholder value, investing $1.3 billion toward Subsplash and several bolt-on acquisitions. Management highlighted that all business units are accelerating AI innovation, with strong AI solution pipelines and growing internal efficiencies.
Roper Technologies, Inc. (NASDAQ:ROP) operates as a group of technology businesses holding leading positions in select niche markets, with a portfolio that includes application software, network software, and technology-enabled products.
4. NextEra Energy, Inc. (NYSE:NEE)
5-Year Average Annual Dividend Growth Rate: 10.20%
NextEra Energy, Inc. (NYSE:NEE) is among the best dividend aristocrat stocks to buy now.
On October 29, UBS raised its price target on NextEra Energy, Inc. (NYSE:NEE) to $96 from $84, maintaining a Buy rating on the stock, according to a report by The Fly.
NextEra Energy, Inc. (NYSE:NEE) delivered strong Q3 2025 earnings and shared plans for a major four-year investment through Florida Power & Light (FPL), committing roughly $40 billion to new energy infrastructure. The plan includes 5.3 gigawatts of solar capacity, 3.4 gigawatts of battery storage, and a gas peaker plant, pending regulatory approval.
In other news, NextEra Energy, Inc. (NYSE:NEE) is reportedly in advanced discussions to acquire Symmetry Energy Solutions for around $800 million, according to Bloomberg sources. Backed by Energy Capital Partners, Symmetry is an unregulated gas retail platform, and the acquisition would expand NextEra’s natural gas capabilities while complementing its position as a leading provider of wind and solar energy. Sources suggest that a deal could be announced within weeks.
NextEra Energy, Inc. (NYSE:NEE) is one of North America’s largest energy infrastructure companies, supplying electricity to millions of homes and businesses while maintaining a strong presence in renewable energy.
3. Abbott Laboratories (NYSE:ABT)
5-Year Average Annual Dividend Growth Rate: 10.38%
Abbott Laboratories (NYSE:ABT) is one of the best dividend aristocrat stocks to invest in.
On October 24, Citi analyst Joanne Wuensch reaffirmed a Buy rating on Abbott Laboratories (NYSE:ABT), as reported by The Fly. She highlighted that Judge Pallmeyer of the US District Court for the Northern District of Illinois granted summary judgment in Abbott’s favor in the third of four bellwether cases related to the multi-district litigation over cow’s milk-based infant formulas. Citi views this dismissal positively, noting it could set a precedent for evaluating the remaining NEC cases.
Looking ahead to 2026, Abbott Laboratories (NYSE:ABT)’s management reiterated guidance for high single-digit organic sales growth and double-digit EPS growth. Chairman and CEO Robert Ford emphasized that the company remains on track to achieve these targets, supported by easing diagnostic headwinds in China, reduced tariffs, stronger contributions from new product launches, and continued momentum in high-growth offerings such as AVEIR, TAVR, Libre, and TriClip.
Abbott Laboratories (NYSE:ABT) is a global healthcare company that develops and manufactures a broad range of products, including diagnostics, medical devices, nutritional products, and branded generic pharmaceuticals.
2. Automatic Data Processing, Inc. (NASDAQ:ADP)
5-Year Average Annual Dividend Growth Rate: 11.10%
Automatic Data Processing, Inc. (NASDAQ:ADP) is among the best dividend aristocrat stocks to invest in.
On October 30, JPMorgan lowered its price target on Automatic Data Processing, Inc. (NASDAQ:ADP) to $295 from $340 while maintaining an Underweight rating on the shares, according to a report by The Fly. The firm made minimal adjustments to its estimates following the company’s fiscal Q1 results.
In its first-quarter report for fiscal 2026, Automatic Data Processing, Inc. (NASDAQ:ADP) posted strong results, with revenue reaching $5.2 billion, reflecting a 7.09% increase from the same period last year. Net earnings rose 6% to $1.0 billion, supported by robust new business bookings, strong client revenue retention, and higher client funds interest revenue, all of which contributed to results exceeding expectations.
It is also a solid dividend company. Over the past decade, Automatic Data Processing, Inc. (NASDAQ:ADP) has returned approximately $30 billion to shareholders through dividends and share repurchases, nearly tripling its dividend in that time. ADP has also earned its place among the select group of Dividend Kings, with a remarkable 50-year streak of consecutive dividend increases.
Automatic Data Processing, Inc. (NASDAQ:ADP) is a global leader in human resources and payroll services, providing business solutions to more than 1.1 million clients across corporations, governments, and small businesses worldwide.
1. Lowe’s Companies, Inc. (NYSE:LOW)
5-Year Average Annual Dividend Growth Rate: 15.87%
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best dividend aristocrat stocks to invest in.
On November 7, Bernstein analyst Zhihan Ma raised the firm’s price target on Lowe’s Companies, Inc. (NYSE:LOW) to $282 from $279 while maintaining an Outperform rating on the stock. Heading into the home improvement earnings season, the firm noted that investor sentiment towards Lowe’s remains somewhat cautious. While macroeconomic trends are expected to dominate discussions, Bernstein mentioned that the company’s “Complex Pro” strategy will also be closely monitored.
The firm anticipates positive comparable sales for the company in the third quarter. It added that favorable summer weather supported activity, although the absence of a strong hurricane season could act as a mild headwind to sales of about 55 to 100 basis points, with a slight benefit to margins.
Lowe’s Companies, Inc. (NYSE:LOW) continues to be recognized as a reliable dividend payer. Over the past five years, the company has increased its dividend at an average annual rate of nearly 16%. Despite this consistent growth, its payout ratio has remained relatively conservative. Currently, the company distributes around 38% of its earnings as dividends, a level generally considered sustainable. This indicates that Lowe’s has room to continue growing its payouts even if earnings growth moderates.
Lowe’s Companies, Inc. (NYSE:LOW) is a multinational home improvement and hardware retailer that sells a wide range of products for building, repairing, and improving homes.
While we acknowledge the potential of LOW to grow, 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 LOW and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Best Consistent Dividend Stocks to Buy Now and 15 Best DRIP Stocks to Own Right Now
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
