In this article, we will take a look at the Dividend Aristocrats Ranked By Yield: Top 10 Stocks.
Dividends have long been an important part of stock market returns. A report from S&P Dow Jones Indices found that since 1926, dividends have contributed about 31% of the S&P 500’s total return. Capital appreciation accounted for the other 69%. That is why investors often look for both reliable dividend income and the potential for share price growth.
Companies that consistently raise their dividends usually signal confidence in their future. Investors often see those dividend records as a sign of financial strength and a well-established business. The S&P 500 Dividend Aristocrats index tracks companies in the broader market that have increased their dividends for at least 25 straight years. What makes the index stand out is its balance. It offers exposure to both dividend income and long-term capital growth. Many other income-focused strategies tend to lean more heavily toward one or the other.
The report also showed that, over time, the Dividend Aristocrats index delivered higher returns with lower volatility than the broader market. That combination resulted in stronger risk-adjusted returns.
Given this, we will take a look at some of the best dividend aristocrat stocks.
Our Methodology:
For this list, we screened for dividend aristocrats and identified stocks with yields above 2%, as of May 29. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. The stocks are ranked according to their dividend yields.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. A. O. Smith Corporation (NYSE:AOS)
Dividend Yield as of May 29: 2.5%
On May 15, JPMorgan analyst Tomohiko Sano downgraded A. O. Smith Corporation (NYSE:AOS) to Underweight from Neutral and lowered the price target to $60 from $65. The analyst took a more cautious view on the stock due to the company’s exposure to China and the residential market. In a research note, Sano said the downgrade reflects A.O. Smith’s reduced guidance, its significant residential exposure, and a weaker outlook for China. Expectations for a recovery in the second half of 2026 have shifted, with the company now projecting a 15% sequential decline in Q2.
Earlier, on May 4, DA Davidson lowered its price recommendation on AOS to $67 from $75. It reiterated a Neutral rating following the company’s Q1 earnings miss. The firm noted that demand in North America’s residential market remains sluggish as housing conditions continue to weigh on activity. It also pointed to ongoing pressure in the WT, or water technology, business. In China, sell-through trends remain weak. DA Davidson said sales declined by a high-teens percentage year over year due to a lack of stimulus measures and soft consumer confidence. As a result, the company is working to rebalance inventory levels during Q2.
A. O. Smith Corporation (NYSE:AOS) develops technologies and solutions for products that are manufactured and marketed around the world. The company operates through two segments: North America and the Rest of the World.
9. Consolidated Edison, Inc. (NYSE:ED)
Dividend Yield as of May 29: 3.34%
On May 21, Morgan Stanley lowered its price recommendation on Consolidated Edison, Inc. (NYSE:ED) to $99 from $105. It reiterated an Underweight rating on the shares. The analyst said the change came as part of the firm’s April update of price targets for Regulated & Diversified Utilities and Independent Power Producers (IPPs) across North America. Morgan Stanley also noted that utility stocks underperformed the S&P this month.
During the company’s Q1 2026 earnings call, Senior Vice President and CFO Kirk Andrews said that as customers continue to adopt cleaner energy technologies, the company remains focused on creating value for both customers and shareholders in 2026 through the disciplined execution of Con Edison of New York’s three-year investment plan. He said the company is investing in infrastructure across both utilities to keep the system resilient and reliable as demand grows. At the same time, it continues to focus on cost discipline and delivering projects within budget.
Andrews also said that, based on first-quarter results and expectations for the rest of the year, the company is reaffirming its 2026 adjusted EPS guidance range. During the quarter, the company settled a forward sale agreement involving 7 million common shares, generating proceeds to support investments in its energy systems. Andrews added that the company completed the sale of its stake in Mountain Valley Pipeline, LLC, for total consideration of $357.5 million.
Consolidated Edison, Inc. (NYSE:ED) is a holding company. Through its subsidiaries, the company provides a range of energy-related products and services to customers.
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