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.
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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.
8. Target Corporation (NYSE:TGT)
Dividend Yield as of May 29: 3.62%
On May 22, Argus raised its price recommendation on Target Corporation (NYSE:TGT) to $150 from $145. It reiterated a Buy rating on the shares. The firm said the stock remains attractively valued, pointing to its roughly 3.7% dividend yield and meaningful upside to the new price target. Argus also believes the company’s new management team has a clear roadmap to invest in the business and make its merchandise more compelling. In a research note, the analyst noted that Target has increased its dividend for 54 consecutive years and is expected to extend that streak to 55 years in fiscal 2027.
Also on May 22, Roth Capital raised its price goal on Target to $114 from $88 while maintaining a Neutral rating. The firm said the company delivered a strong first-quarter performance, with comparable sales and earnings coming in ahead of expectations. Target also raised its FY26 guidance. Roth noted that two concerns remain. First, SG&A expenses continue to outpace the surprise growth in revenue. Second, Q1 may have been a Goldilocks quarter, benefiting from the easiest comparison period and a favorable environment for discretionary spending. The analyst added that Target’s performance could slow in the coming quarters as comparisons become more difficult and fuel prices move higher.
Target Corporation (NYSE:TGT) is a general merchandise retailer that sells products through its stores and digital channels. The company offers guests a range of differentiated merchandise and everyday essentials at discounted prices.
7. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of May 29: 3.72%
On May 29, BofA raised its price recommendation on Federal Realty Investment Trust (NYSE:FRT) to $128 from $125. It reiterated a Buy rating on the shares. The firm updated its cap rate assumptions following the International Council of Shopping Centers (ICSC) event in Las Vegas. According to the analyst, the changes were based on discussions with brokers during the conference.
Earlier, on May 26, Wells Fargo raised its price goal on Federal Realty to $129 from $120. It kept an Overweight rating on the stock. The firm said it remains positive on retail REIT fundamentals heading into upcoming meetings at Nareit in June. Wells Fargo also continues to see long-term tailwinds supporting the sector. At the same time, the firm noted that valuations have become less attractive after the group’s strong performance so far this year.
Federal Realty Investment Trust (NYSE:FRT) is an equity real estate investment trust (REIT). The trust focuses on owning, operating, and redeveloping retail-based properties, primarily in major coastal markets and selected underserved regions with strong economic and demographic fundamentals.
6. Chevron Corporation (NYSE:CVX)
Dividend Yield as of May 29: 3.89%
On May 28, Reuters reported that Chevron Corporation (NYSE:CVX) had filed a request to acquire a 70% stake in an offshore block southwest of Greece from Helleniq Energy. This move would expand the company’s footprint in the Mediterranean.
According to Greece’s energy ministry, Chevron would take over as the operator of Block 2 in the Ionian Sea if the request is approved. The company would lead gas exploration activities in the area, while Helleniq Energy would keep a 30% stake. The ministry also said Greece is considering giving the two companies additional time to review seismic data collected from the region before deciding whether to proceed with exploratory drilling.
Separately, Chevron announced on May 29 that Scott A. Keller has been appointed general counsel. Keller, 44, will join the company on July 1 and report to Chevron’s current chief legal officer, R. Hewitt Pate. The appointment comes as the company prepares for Pate’s expected retirement in mid-2027 after 17 years of service.
Chevron said Keller is expected to become chief legal officer on January 1, 2027. In that role, he will oversee the company’s legal affairs worldwide and report directly to Chairman and CEO Mike Wirth.
Chevron Corporation (NYSE:CVX) is an integrated energy company with operations spanning the energy sector. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and develops technologies that support its business and the industry as a whole.
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