In this article, we will take a look at the 25 best dividend aristocrat stocks.
Dividend aristocrats are companies that have raised their dividends every year for at least 25 years. Investors tend to favor them because a long record of dividend growth creates confidence that payouts can keep rising over time.
These companies are usually mature businesses with steady earnings. In many cases, management teams place dividends high on the capital structure, treating regular increases as a core responsibility. For investors who rely on income, that kind of discipline carries weight.
Still, dividend aristocrats are not immune to cuts. Early in 2024, for example, former dividend aristocrat Walgreens Boots Alliance WBA reduced its dividend by nearly half. That move surprised many income-focused investors and served as a reminder that history alone does not guarantee safety.
Morningstar Indexes strategist Dan Lefkovitz has noted that companies with wide economic moats have been less likely to cut dividends than companies with narrow moats. Businesses with no moat face the highest risk. That difference often becomes clear when earnings come under pressure.
Research from S&P Dow Jones Indices helps explain why dividends matter over the long run. As the report states, “Dividends play an important role in generating equity total return.” Since 1926, dividends have contributed about 31% of total return for the S&P 500, while capital appreciation accounted for 69%. Both income and growth shape long-term return expectations.
The report also found that, over time, the S&P 500 Dividend Aristocrats delivered higher returns with lower volatility than the broader S&P 500. That combination led to stronger risk-adjusted returns and explains why many investors continue to pay close attention to this group.
Given this, we will take a look at some of the best dividend aristocrat stocks to invest in.
Our Methodology:
For this article, we scanned a list of Dividend Aristocrats and identified companies with the strongest dividend growth rates over the past five years. We picked 25 companies with the highest dividend growth rates and ranked them accordingly.
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).
25. Eversource Energy (NYSE:ES)
5-Year Average Dividend Growth Rate: 5.81%
Eversource Energy (NYSE:ES) supplies electricity, natural gas, and water to about 4.6 million customers across Connecticut, Massachusetts, and New Hampshire. As a regulated utility, its rates are set by federal and state regulators, giving the company a clear path to recover costs through routine rate cases. It does not own power generation assets. Instead, it meets customer demand by securing energy through long-term contracts and procurement agreements.
The company has built a solid earnings record over time and stands to benefit from scheduled rate increases, ongoing transmission upgrades, and continued investment in clean energy projects. Eversource has also exited its US commercial-scale offshore wind business. That move simplifies the story and leaves the company focused entirely on its regulated utility operations.
With economic development across its service territory remaining supportive, management expects to invest about $24.2 billion between 2025 and 2029 to modernize and expand its infrastructure. There is also room for an additional $1.5 billion to $2 billion in incremental projects over the same period.
Taken together, those investments underpin the company’s outlook for 5% to 7% annual non-GAAP EPS growth over the forecast window. On the income side, Eversource Energy (NYSE:ES) recently raised its quarterly dividend by 4.7% to $0.7875 per share, extending its dividend growth streak to 26 consecutive years.
24. Becton, Dickinson and Company (NYSE:BDX)
5-Year Average Dividend Growth Rate: 5.97%
On January 28, Piper Sandler analyst Jason Bednar lifted Becton, Dickinson and Company (NYSE:BDX)’s price recommendation to $205 from $190. The analyst maintained a Neutral rating. The firm pointed to changes in how BD reports its business units starting in Q1 2026 and said it is updating its financial model to align with the new structure. Piper added that its estimates still include the Life Sciences segment, even though that unit is set to transition to Waters in the coming weeks.
Earlier in the month, BD announced plans to invest $110 million to expand production of prefillable syringes, a move aimed at supporting faster delivery of biologic and GLP-1 drugs while strengthening pharmaceutical manufacturing in the U.S. The investment brings BD Neopak™ Glass Prefillable Syringe production to Columbus, Nebraska, and is expected to create about 120 new jobs while improving supply resilience within the company’s Pharmaceutical Systems business.
Of the total investment, $100 million will go toward establishing Neopak™ syringe production at the Columbus facility, with initial supply targeted for mid-2026. The company will also use the funds to upgrade existing lines and expand capacity across the site to keep up with rising global demand for advanced injectable products. An additional $10 million will be directed toward enhancing cannula manufacturing, and together these projects are expected to support roughly 120 new roles.
Becton, Dickinson and Company (NYSE:BDX) remains one of the world’s largest medical technology companies, with a broad focus on advancing healthcare through improvements in medical discovery, diagnostics, and the delivery of care.
23. General Dynamics Corporation (NYSE:GD)
5-Year Average Dividend Growth Rate: 6.40%
On January 29, UBS lifted its price target on General Dynamics Corporation (NYSE:GD) to $393 from $388 while keeping a Neutral rating on the stock. The firm said demand is improving across most of the company’s businesses, with Gulfstream, Combat Systems, and Marine Systems standing out. That momentum is supporting free cash flow growth, even as capital spending rises sharply. UBS added that while General Dynamics has a long runway for earnings growth, margin trends and cautious guidance led the firm to leave its estimates largely unchanged, noting that broader market expectations may need to cool.
A day earlier, General Dynamics reported fourth-quarter profit and revenue that topped estimates, helped by strength in its combat and marine systems units. Even so, the company issued a full-year profit outlook that came in below Wall Street forecasts. Management expects annual earnings of $16.10 to $16.20 per share, compared with the consensus estimate of $17.29 per share, according to LSEG data.
During the post-earnings call, President Danny Deeb said the impact of U.S. tariffs in 2026 is expected to exceed the $41 million recorded in 2025, adding that those higher costs have already been factored into the company’s margin outlook.
The Marine Systems business continued to recover from earlier supply chain issues and labor shortages, with productivity improving during the quarter. Meanwhile, the Combat Systems segment benefited from rising international demand, particularly in Europe, as ongoing geopolitical tensions and global conflicts supported higher sales of vehicles, weapons, and munitions. Orders also remained strong, with quarterly bookings running at 1.6 times billings, highlighting the depth of General Dynamics’ backlog.
General Dynamics Corporation (NYSE:GD) is a global aerospace and defense contractor with a broad portfolio that also includes business aviation products and services.
22. Nucor Corporation (NYSE:NUE)
5-Year Average Dividend Growth Rate: 6.51%
On January 28, UBS analyst Andrew Jones cut Nucor Corporation (NYSE:NUE) to Neutral from Buy and raised the firm’s price target to $183 from $168. The move reflects what the analyst described as “full” valuation and pricing. UBS noted that Nucor shares have climbed 32% since mid-October, even after a softer fourth quarter, supported by strong pricing momentum in flat and long products and a $130/st announced increase in plate prices.
Separately, Reuters reported that Nucor’s fourth-quarter profit and revenue fell short of Wall Street expectations on January 26, as higher costs weighed on margins across its steelmaking operations. While broad US import tariffs have helped lift spot steel prices, steel producers continued to realize lower selling prices during the quarter. That is because many long-term contracts reset gradually and are still tied to older pricing, delaying the benefit from higher tariff-driven prices.
For the quarter, Nucor posted earnings of $1.73 per share, below the $1.91 per share analysts were expecting, according to LSEG data. Revenue rose 9% to $7.69 billion for the quarter ended December 31, also coming in under the $7.87 billion consensus estimate.
Nucor Corporation (NYSE:NUE) is a leading steel producer with operations across the US, Canada, and Mexico. In addition to making steel and steel products, the company produces and sources ferrous and non-ferrous materials primarily to support its own steel manufacturing operations.
21. Illinois Tool Works Inc. (NYSE:ITW)
5-Year Average Dividend Growth Rate: 7.07%
Illinois Tool Works has been operating for more than a century and has built a business that is difficult to replicate. Its competitive edge comes from scale, deep customer relationships, and a sizable intellectual property portfolio with more than 17,000 granted and pending patents.
The company’s dividend history stands out even among dividend aristocrats. During the financial crisis, when payout ratios became stretched, Illinois Tool Works kept its dividend intact. Today, the payout ratio sits near 62% of expected earnings, above management’s long-term comfort zone. That suggests future dividend increases may track more closely with earnings rather than outpace them. Even so, the company has raised its dividend for 62 consecutive years.
Illinois Tool Works Inc. (NYSE:ITW) operates through seven business segments spanning industries such as automotive components and food service equipment. All of them follow the company’s “80/20 Front-to-Back” operating model, which emphasizes focusing on the most profitable customers and products while simplifying the rest.
Management has leaned heavily into operational discipline, targeted innovation, and portfolio reshaping. Non-core assets are sold, divisions are given autonomy to solve customer problems, and capital is deployed with shareholder returns in mind.
20. A. O. Smith Corporation (NYSE:AOS)
5-Year Average Dividend Growth Rate: 7.09%
On January 30, Stifel analyst Nathan Jones raised his price objective on A. O. Smith Corporation (NYSE:AOS) to $85 from $80. The analyst also maintained a Buy rating on the stock. He pointed to a fourth-quarter earnings beat, even as the company’s 2026 revenue outlook came in lighter than expected and the midpoint of EPS guidance fell below consensus. Despite the mixed results, shares rose about 5%. Stifel believes the move was likely driven by short covering.
The company reported higher fourth-quarter profit on January 29, supported by solid demand for residential and commercial boilers and water treatment products in North America. Management highlighted continued challenges in China, but margins still improved. “Our China margins expanded despite ongoing pressure on volumes due to challenging market conditions,” CEO Steve Shafer said. The company has previously said it is exploring strategic partnerships and other options for its China business.
Adjusted net income for the quarter climbed to $125.4 million, or $0.90 per share, up from $109.7 million, or $0.75 per share, a year earlier. Sales in North America increased 3.5% to $713.7 million, helped by pricing and stronger water treatment profitability that offset higher input costs.
Total revenue for the quarter ended December 31 was $912.5 million, essentially flat from the prior year. Looking ahead, A.O. Smith expects full-year earnings per share to fall between $3.85 and $4.15.
A. O. Smith Corporation (NYSE:AOS) designs and applies technology-driven solutions across products sold globally. The company operates through two main segments: North America and the rest of the world.
19. Erie Indemnity Company (NASDAQ:ERIE)
5-Year Average Dividend Growth Rate: 7.18%
Erie Indemnity Company (NASDAQ:ERIE) has been part of the insurance industry since the 1920s. Over time, it has built a presence across life, auto, home, and commercial insurance, giving it a broad and established footprint.
In the third quarter, the company reported revenue of $1.06 billion, up 6.0% from the same period last year. Growth came mainly from higher management fees tied to policy issuance and renewals, which rose 7.3% year over year. Administrative services fees also increased, climbing 9.8%, though from a smaller base. Investment income moved higher as well, rising to $21.6 million from $19.5 million a year earlier.
Like most insurers, Erie Indemnity holds a large float. Premiums are collected upfront and invested, which means results tend to move with market rates, including Treasury yields. One thing that sets the company apart is how it handled past downturns. During the Great Recession, Erie did not cut its dividend. It continued to raise payouts through that period, preserving its long-term record.
That history matters. The company operates in a cyclical sector and remains exposed to economic slowdowns, but it has shown an ability to recover and keep rewarding shareholders. Erie Indemnity Company (NASDAQ:ERIE) has now raised its dividend for 36 consecutive years.
18. Archer-Daniels-Midland Company (NYSE:ADM)
5-Year Average Dividend Growth Rate: 7.21%
Archer-Daniels-Midland Company (NYSE:ADM) plays a key role in moving food ingredients from farm to end market. The company buys basic commodities, including wheat, processes agricultural products into cooking and food ingredients, and manages the transport and resale of those goods across global markets.
The past few years have not been easy. Global food supply chains have faced repeated disruptions, with the war in Ukraine adding fresh pressure. More recently, ADM has had to navigate falling prices for certain crops as oversupply weighed on global markets.
According to a Reuters report, ADM agreed to pay a $40 million civil penalty to settle SEC allegations that it inflated results in its Nutrition business. The company neither admitted nor denied wrongdoing. The Justice Department closed its separate investigation without filing criminal charges, bringing an end to a long-running accounting issue that led to financial restatements, steep share price declines, and shareholder lawsuits.
The SEC also sued former CFO Vikram Luthar and fined two other former executives tied to the matter. Regulators said the case centered on internal transactions that overstated the Nutrition unit’s performance, which led ADM to reduce operating profit for the segment by $228 million between 2018 and 2023.
Archer-Daniels-Midland Company (NYSE:ADM) said it cooperated with regulators, carried out an internal review, and strengthened its accounting controls. CEO Juan Luciano said the company is pleased to put the issue behind it.
17. Ecolab Inc. (NYSE:ECL)
5-Year Average Dividend Growth Rate: 7.23%
On January 23, Erste Group lowered its rating on Ecolab Inc. (NYSE:ECL) to Hold from Buy. The decision came down to valuation. The firm said Ecolab’s price-to-earnings multiple now sits well above sector averages, a point the analyst highlighted in a research note.
Earlier in December, Ecolab completed its previously announced acquisition of Ovivo’s electronics business. Ovivo is a fast-growing provider of ultrapure water technologies used in semiconductor manufacturing, an area seeing strong demand.
The deal expands Ecolab’s reach across the artificial intelligence value chain, stretching from chip fabrication to data centers. It more than doubles the size of the company’s global high-tech growth platform and positions Ecolab as a leading supplier to these fast-moving industries. By combining Ovivo’s ultrapure water expertise with Ecolab’s global water, digital, and service capabilities, the company aims to deliver circular water management solutions tailored to the water-intensive semiconductor industry and help customers reduce overall water use.
Ecolab Inc. (NYSE:ECL) provides water, hygiene, and infection prevention solutions that support public health and protect critical resources. Within its Global Industrial segment, the company offers water treatment, process applications, and cleaning and sanitizing solutions, primarily serving large industrial customers.
16. McDonald’s Corporation (NYSE:MCD)
5-Year Average Dividend Growth Rate: 7.30%
McDonald’s Corporation (NYSE:MCD) raised its dividend last October for the 49th straight year, keeping it on pace to reach Dividend King status in 2026. That consistency stands out at a time when the restaurant industry is under pressure from softer consumer spending. Sit-down chains that rely on the dining experience have felt the most strain. Restaurants built around speed, convenience, and value have held up far better.
In the third quarter of 2025, McDonald’s delivered solid results. Comparable sales increased 3.6%, while systemwide sales rose 8% from the prior year. Systemwide sales capture the performance of both company-owned and franchised restaurants, offering a clearer view of how the brand is doing across its footprint.
The franchise model is central to McDonald’s strength. About 95% of its roughly 44,000 locations in more than 100 countries are run by independent operators, not the company itself.
Those franchisees tap into McDonald’s Corporation (NYSE:MCD)’s global brand, supply chain, marketing, and business model that has been tested for decades. In exchange, they pay upfront fees, rent, royalties, and other ongoing costs. That setup leaves McDonald’s more insulated from shifts in consumer spending and helps drive higher margins than chains that own and operate all of their restaurants.
15. McCormick & Company, Incorporated (NYSE:MKC)
5-Year Average Dividend Growth Rate: 7.58%
On January 26, Barclays analyst Andrew Lazar trimmed his price objective on McCormick & Company, Incorporated (NYSE:MKC) to $67 from $72. The analyst kept an Equal Weight rating after the company reported fourth-quarter results. He pointed out that management had already hinted in fiscal Q3 that it might favor protecting volumes over short-term profit growth in fiscal 2026. What changed after the latest report were fresh headwinds. The faster pace of the company’s enterprise resource planning rollout and a tax-related drag were not fully on investors’ radar before, Lazar noted.
Just days earlier, on January 22, McCormick cautioned that fiscal 2026 profits are likely to face pressure. Higher costs tied to tariffs and commodities are weighing on margins. Trade uncertainty has pushed raw material prices higher, and ongoing investments in manufacturing sites and brand marketing have added another layer of cost.
On the post-earnings call, CEO Brendan Foley spoke candidly about the environment. Inflation, volatile commodity prices, and broader macro conditions drove incremental costs that hurt margins. He also said roughly 50% of the incremental tariffs on McCormick products are still in place, and the inflation tied to those tariffs has not faded.
Looking ahead, the company expects tariffs to add about $50 million in incremental costs in fiscal 2026. McCormick imports several key spices, including pepper and herbs, which leaves it exposed when input prices rise. Deutsche Bank analyst Steve Powers said the stock could remain under pressure in the near term following the weak quarter and cautious outlook. Over time, he sees support from steady demand for everyday flavor products and from the company’s acquisition of McCormick de Mexico.
McCormick & Company, Incorporated (NYSE:MKC) makes and sells spices, seasoning mixes, condiments, and other flavor products across global markets.
14. Caterpillar Inc. (NYSE:CAT)
5-Year Average Dividend Growth Rate: 7.59%
On January 30, Baird raised its price target on Caterpillar Inc. (NYSE:CAT) to $805 from $680 and maintained an Outperform rating. The firm updated its model after reviewing fourth-quarter results that pointed to a large backlog, solid earnings visibility, and returns on invested capital that continue to run ahead of expectations.
A Reuters report said Caterpillar’s fourth-quarter performance reflected the broader global economy. Sales benefited from a surge in spending tied to artificial intelligence, even as the company warned investors about a potential tariff impact of more than $2 billion in the year ahead. Like several large technology names, Caterpillar and other industrial companies have leaned into the AI narrative to support investor interest. Over the past year, the stock has climbed about 60%, roughly four times the gain of the S&P 500 over the same period.
The AI boom has reshaped Caterpillar’s business mix. Power and energy is now the company’s largest segment by sales, overtaking its long-standing construction unit. Demand has been especially strong for “prime power” systems. These large generators are built to deliver continuous, round-the-clock electricity.
On the post-earnings call, CEO Joe Creed said data center customers are increasingly turning to on-site power solutions as they work to keep up with rapid growth.
Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
13. Cincinnati Financial Corporation (NASDAQ:CINF)
5-Year Average Dividend Growth Rate: 7.71%
Cincinnati Financial Corporation (NASDAQ:CINF) is a familiar name among dividend-focused investors. For 75 years, the company has emphasized financial strength to meet its insurance obligations while also creating value for shareholders. Part of that value is returned through regular dividend payments, and the company has managed to balance both priorities over long periods of time. Cincinnati Financial has raised its dividend for 65 straight years, placing it among the longest-running dividend growth records in the market.
On January 5, BofA lowered its price target on Cincinnati Financial to $180 from $186 while keeping a Buy rating on the stock. The firm said pricing trends across most property and casualty insurance products remain weak, much like they were in 2025. Liability lines continue to see better pricing, though loss costs are rising faster than prices. Personal auto pricing has flattened, and some investors are starting to expect declines following a period of strong profitability. Even so, BofA noted that underwriting valuations do not appear stretched, despite fundamentals moving in the “wrong direction.”
Cincinnati Financial Corporation (NASDAQ:CINF) primarily provides business, home, and auto insurance through its core subsidiary, The Cincinnati Insurance Company.
12. Expeditors International of Washington, Inc. (NYSE:EXPD)
5-Year Average Dividend Growth Rate: 8.17%
Truist raised its price objective on Expeditors International of Washington, Inc. (NYSE:EXPD) on January 15 to $160 from $130. However, the firm kept a Hold rating on the stock. The update came as part of a broader note previewing fourth-quarter earnings across Freight & Logistics. Truist expects Q4 results to stay under pressure due to weak industrial production. At the same time, truckload trends are improving, excess capacity continues to exit the market, and peak season execution was solid. Taken together, those factors suggest a stronger exit rate from 2025 into 2026.
In the near term, broker margins could feel some strain as spot rates move higher. Peak season volumes appear to be tracking normal seasonal patterns, and the sales mix may lean more toward airfreight and parcel, which could support margins in those areas.
Management continues to approach the market with caution. Ocean rates could fall if Red Sea trade routes normalize, and geopolitical and labor risks remain in the background. Even so, the company stays focused on expanding its footprint and tightening operations. With a wide mix of revenue streams, Expeditors is positioned to grow over time, though recessions, global trade disruptions, and sudden shocks remain real risks. The company has increased its dividend for 31 consecutive years.
Expeditors International of Washington, Inc. (NYSE:EXPD) provides global logistics services that include air and ocean freight forwarding, customs brokerage, vendor consolidation, cargo insurance, time-sensitive delivery, order management, warehousing, distribution, and other tailored logistics solutions.
Short-term headwinds are still there. Over the long run, volumes have trended higher, and that pattern has supported revenue growth for many years. The same dynamic is expected to play out again.
11. Atmos Energy Corporation (NYSE:ATO)
5-Year Average Dividend Growth Rate: 8.97%
BofA lowered its price recommendation on Atmos Energy Corporation (NYSE:ATO) to $177 from $185 on January 30. The firm kept a Neutral rating after updating its EPS estimates for fiscal 2026 through 2028. A few days earlier, on January 27, Barclays nudged its price target higher to $167 from $165 while maintaining an Equal Weight rating on the stock.
Atmos Energy’s main advantage comes from the nature of the utility business itself. Natural gas service is essential, and the industry is heavily regulated. Those regulatory barriers make it extremely difficult for new competitors to enter the market. For Atmos, that structure brings a high level of visibility and consistency in annual earnings.
The company also benefits from a steady operating model and a strong balance sheet. That combination supports a lower cost of capital, which helps fund growth investments and selective acquisitions that add to earnings over time.
Utilities tend to hold up well during economic slowdowns, and Atmos has shown that in practice. During the 2008 and 2009 downturn, when many companies saw sharp drops in earnings, Atmos Energy continued to grow its earnings per share.
Atmos Energy Corporation (NYSE:ATO) operates as a natural gas-only distributor, serving more than 3.3 million customers across over 1,400 communities in eight states, primarily in the southern US.
10. Linde plc (NASDAQ:LIN)
5-Year Average Dividend Growth Rate: 9.27%
Linde plc (NASDAQ:LIN) has spent years building out practical hydrogen solutions, from efficient compression systems to safe refueling technology. It has also developed ways to cut hydrogen’s carbon footprint by pairing production with carbon capture and storage.
That work is already translating into large projects. In 2024, Linde reached an agreement to build a 100-megawatt renewable hydrogen plant for Shell in Germany, with commercial operations expected to start in 2027. A year later, in June 2025, the company signed a long-term contract to supply industrial gases to a $4 billion low-carbon ammonia facility now under construction in Louisiana. To support that deal, the company plans to invest $400 million in a new on-site facility, adding to its existing hydrogen and syngas infrastructure in the region.
Even with its early lead in hydrogen, Linde has taken a measured view of how quickly the market will grow. Management believes the technology still needs five to seven years to mature before more projects become fully economically viable. Until then, the company continues to invest selectively while preparing for broader adoption.
Clean energy remains a major priority. In 2023, Linde outlined plans to invest up to $50 billion in clean energy projects over the next decade. It is also expanding its global footprint, completing the acquisition of Airtec, one of the Middle East’s largest industrial gas companies, in September 2025.
On the shareholder side, Linde has built a strong track record. The company has raised its dividend for 31 consecutive years and has consistently paid out.
Linde plc (NASDAQ:LIN) is a UK-based industrial gases and engineering company that serves a wide range of end markets, including chemicals and energy, food and beverage, electronics, healthcare, manufacturing, metals, and mining.
9. Abbott Laboratories (NYSE:ABT)
5-Year Average Dividend Growth Rate: 9.42%
A Reuters report said Abbott Laboratories (NYSE:ABT) warned that its current-quarter profit would come in below expectations after the company also fell short of Wall Street’s revenue forecasts on January 22. Pressure has been building in Abbott’s pediatric nutrition business, which has struggled in recent quarters after losing a major US government supply contract last year. At the same time, higher manufacturing costs for consumer packaged goods have weighed on results.
CEO Robert Ford explained that rising production costs pushed prices higher, which ultimately hurt demand as consumers became more sensitive to price increases. “We’ll have a couple quarters here where growth in nutrition is going to be challenged, and then in the second half, we’ll return to positive growth,” Ford said.
Performance across the company was broadly weaker than expected. All four business segments missed sales estimates. Nutrition sales dropped 8.9% year over year to $1.94 billion, while the diagnostics unit saw sales fall 2.5% to $2.46 billion.
Looking ahead, Abbott said it expects adjusted earnings of $1.12 to $1.18 per share in the first quarter, below the analyst consensus of $1.20, according to data compiled by LSEG. Total revenue for the quarter ended December 31 came in at $11.46 billion, short of the $11.80 billion analysts had been expecting. On an adjusted basis, fourth-quarter earnings were $1.50 per share, matching Wall Street forecasts.
Abbott Laboratories (NYSE:ABT) is a global healthcare company focused on discovering, developing, manufacturing, and selling a wide range of healthcare products across multiple categories.
8. Roper Technologies, Inc. (NASDAQ:ROP)
5-Year Average Dividend Growth Rate: 10.02%
On January 29, RBC Capital cut its price target on Roper Technologies, Inc. (NASDAQ:ROP) to $398 from $539 and kept a Sector Perform rating following the company’s earnings and outlook. The firm said the sharp drop in the stock reflected investor unease around weaker organic growth expected in the second half of the year, along with continued scrutiny of three softer areas in Roper’s portfolio: Deltek, Neptune, and Procare. RBC also pointed to the growing risk from AI across Roper’s businesses, noting that these concerns are likely to linger and cannot be fully ruled out over the next year.
Roper added to those concerns by forecasting 2026 revenue and profit below Wall Street expectations, largely due to softer demand at Deltek, its government contracting software unit. The company sees total revenue growth of about 8% for the year, compared with analyst estimates closer to 9%.
CEO Neil Hunn said the outlook reflects a more realistic and balanced view after recent quarters fell short, driven mainly by uncertainty at Deltek. He also warned that future US government shutdowns could create further pressure, noting that Deltek saw a slowdown last September as agencies paused activity ahead of the most recent shutdown.
For 2026, Roper expects adjusted earnings of $21.30 to $21.55 per share, below the $21.65 analysts had been forecasting, according to data from LSEG. First-quarter adjusted earnings are projected at $4.95 to $5.00 per share, also below estimates of $5.18. The company had already reduced its 2025 profit outlook in October, mainly because of higher costs tied to recent acquisitions.
On the quarterly front, Roper reported revenue of $2.06 billion for the period ended December 31, slightly under the $2.08 billion consensus. Hunn said results were held back by weaker perpetual license revenue, which dragged on organic growth in the application software segment. Despite that, adjusted earnings for the quarter came in at $5.21 per share, topping expectations of $5.14.
Roper Technologies, Inc. (NASDAQ:ROP) is a diversified technology company that focuses on vertical software and technology-enabled products serving a range of specialized, defensible niche markets.
7. NextEra Energy, Inc. (NYSE:NEE)
5-Year Average Dividend Growth Rate: 10.11%
On January 29, BMO Capital lifted its price target on NextEra Energy, Inc. (NYSE:NEE) to $95 from $93 and kept an Outperform rating. The firm described NextEra’s fourth-quarter results as a solid close to 2025, noting that management reaffirmed its 2026 EPS guidance and reiterated expectations for roughly 8% long-term earnings growth through 2035.
According to Reuters, NextEra is also weighing an expansion of its nuclear fleet to help meet rising electricity demand from data centers. The company said on January 27 that it is in advanced talks to supply power for an additional 9 gigawatts of data center capacity. Growing demand from Big Tech has been pushing US power consumption higher, leading to landmark agreements between utilities and data center operators, including efforts to bring previously shut nuclear plants back online. Last year, NextEra said it would restart its Duane Arnold nuclear plant in Iowa to serve data centers operated by Google.
On a recent investor call, NextEra said it could add up to 6 gigawatts of new nuclear technologies at existing sites to support data center demand. The company is also evaluating new locations where advanced nuclear facilities could be built from the ground up.
Financially, NextEra edged past Wall Street’s fourth-quarter profit expectations. Results were supported by steady growth at its regulated Florida utility and a record year for renewable energy and battery storage additions, as electricity demand continues to climb across the US. Looking ahead, power consumption is expected to reach new all-time highs in 2026 as AI and cryptocurrency data centers expand and more households and businesses shift from fossil fuels to electricity for heating and transportation, according to the Energy Information Administration.
NextEra Energy, Inc. (NYSE:NEE) operates Florida Power & Light and its energy infrastructure arm, NextEra Energy Resources. The company remains focused on expanding its wind, solar, and battery storage portfolio.
5. Automatic Data Processing, Inc. (NASDAQ:ADP)
5-Year Average Dividend Growth Rate: 11.54%
TD Cowen trimmed its price objective on Automatic Data Processing, Inc. (NASDAQ:ADP) on January 29 to $255 from $263. The firm also kept a Hold rating on the stock, noting ADP continues to perform well in its Employer Services business, but softer results in the PEO segment are raising some caution. TD Cowen added that broader pressures across the sector are still weighing on the outlook.
That cautious stance comes even after a better-than-expected quarter. A day earlier, on January 28, ADP raised its full-year revenue forecast and beat profit estimates, supported by steady demand for payroll and HR services. Second-quarter revenue came in at $5.36 billion, slightly ahead of the $5.34 billion analysts were expecting, based on data from LSEG. Adjusted earnings were $2.62 per share, topping the consensus estimate of $2.57.
Following the results, ADP said it now expects revenue to grow about 6% for the year, which sits at the upper end of its previous guidance range. The company’s U.S. pay-per-control metric, which reflects how many employees are on client payrolls, rose 1% from a year ago, in line with trends seen over the past few quarters.
The labor market backdrop remains mixed. Layoffs are still relatively limited, but hiring has slowed noticeably, which could temper growth going forward.
Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions through its Employer Services and Professional Employer Organization segments.
5. Fastenal Company (NASDAQ:FAST)
5-Year Average Dividend Growth Rate: 11.81%
On January 21, Barclays lowered its price target on Fastenal Company (NASDAQ:FAST) to $43 from $44 and kept an Equal Weight rating following the company’s fourth-quarter results. The firm said Fastenal is still seeing volume growth, but much of that is being driven by lower pricing, which is weighing on overall performance.
A day earlier, on January 20, Fastenal reported fourth-quarter revenue that came in slightly below Wall Street expectations. The company said higher tariffs pushed prices up and softened demand for some of its products. Strong sales to contract customers helped, but that strength was partly offset by weaker overall business activity. Gains in transportation and data center end markets were also balanced out by softer demand from resellers.
Revenue for the quarter totaled $2.03 billion, just under the $2.04 billion analysts were expecting, according to data from LSEG. Earnings held up better, with profit of 26 cents per share, matching estimates. Looking ahead, Fastenal said it plans to step up spending on property and equipment, projecting investments of $310 million to $330 million in 2026, up from $230.6 million in 2025. The company expects higher costs as it replaces its Atlanta hub facility, faces rising trucking expenses, and increases IT spending tied to project delays.
Fastenal Company (NASDAQ:FAST) is a wholesale distributor of industrial and construction supplies, with a core focus on threaded fasteners.
4. Cintas Corporation (NASDAQ:CTAS)
5-Year Average Dividend Growth Rate: 13.87%
Cintas Corporation (NASDAQ:CTAS) is best known for its uniform rental and facility services business, which serves more than a million customers across a wide range of industries. The company supplies everything from uniforms and safety equipment to floor mats and restroom products, all of which feed into its core revenue base. That uniform rental and facility services segment is the backbone of the business, generating more than 75% of total revenue and playing a central role in maintaining Cintas’s competitive position. Steady growth in this area remains critical to the company’s long-term performance.
On December 22, Cintas said it had submitted a proposal to the board of UniFirst Corporation to acquire all outstanding common and Class B shares for $275 per share in cash. The proposal, delivered to UniFirst’s board on December 12, 2025, values the company at roughly $5.2 billion and represents a 64% premium to UniFirst’s 90-day average closing price as of December 11, 2025.
If completed, the combined company would serve well over one million business customers across the US and Canada. Cintas believes the deal would build on its strong record of organic growth while adding processing capacity and increasing route density, which could further improve service levels for customers. The company said it has already done significant work on the regulatory side and sees a clear path toward securing the necessary approvals. In its most recent proposal, Cintas Corporation (NASDAQ:CTAS) also offered a $350 million reverse termination fee that would be paid to UniFirst if the transaction fails to receive regulatory clearance.
3. Lowe’s Companies Inc. (NYSE:LOW)
5-Year Average Dividend Growth Rate: 15.61%
On January 20, TD Cowen lifted its price target on Lowe’s Companies Inc. (NYSE:LOW) to $295 from $250 and kept a Hold rating. The move was part of a broader reset across the hardlines group. Within that space, TD Cowen named Planet Fitness as its top pick, followed by Home Depot and O’Reilly Automotive.
Lowe’s may not grab headlines as an exciting stock, but it stands out for investors who value steady dividend growth. The company has increased its dividend almost every year since going public in 1961, and over the past decade alone, the payout has climbed more than 300%.
Concerns about a housing slowdown may also be overstated. When housing supply is tight and buying a home becomes more difficult, homeowners often shift their spending toward improving what they already own. That dynamic tends to support demand for home improvement projects. While near-term changes in consumer spending can slow renovation activity, any cyclical pressure is likely to ease over time, allowing growth to resume.
Lowe’s Companies Inc. (NYSE:LOW) operates as a broad-based home improvement retailer, offering products for construction, maintenance, repair, remodeling, and home decoration.
2. Aflac Incorporated (NYSE:AFL)
5-Year Average Dividend Growth Rate: 15.68%
On January 28, TD Cowen trimmed its price target on Aflac Incorporated (NYSE:AFL) to $100 from $102 and kept a Hold rating. The change was part of a broader fourth-quarter preview across the life insurance group. TD Cowen said it expects a modest headwind from lower returns on alternative investments but continues to take a balanced view on the sector overall.
Separately, Aflac has been dealing with the fallout from a major cybersecurity incident. In June, the company disclosed that hackers had gained access to customer data, though it initially said it was unclear how many people were affected. By December, Aflac confirmed that the breach involved information tied to about 22.65 million individuals.
A filing with the Texas Attorney General detailed the scope of the stolen data, which included customer names, dates of birth, home addresses, government-issued ID numbers, Social Security numbers, driver’s license details, and medical and health insurance information, according to TechCrunch. Aflac said it has begun notifying affected customers and is outlining the support and resources available to them as part of its response.
The company said in a statement:
“To date, Aflac is not aware of any fraudulent use of personal information and — along with third-party partners — will continue to monitor any fraudulent activity.”
Aflac Incorporated (NYSE:AFL) provides supplemental insurance and financial protection products through its subsidiaries, with operations primarily focused in the United States and Japan.
1. Nordson Corporation (NASDAQ:NDSN)
5-Year Average Dividend Growth Rate: 21.07%
Nordson Corporation (NASDAQ:NDSN) has built a loyal following among dividend investors, and it’s easy to see why. The company has raised its dividend for 62 straight years, placing it among the longest-running dividend growth stories in the market. As a high-quality industrial compounder, Nordson continues to focus on disciplined capital allocation, balancing reinvestment in the business with consistent returns to shareholders.
In its fourth-quarter 2025 update, Nordson Corporation reported revenue of $752 million, up 1% from a year earlier. CEO Sundaram Nagarajan said the company is entering fiscal 2026 with about $600 million in backlog, a 5% increase from the prior year when excluding orders tied to divested operations. Management expects full-year sales to grow between 1% and 6% compared with fiscal 2025.
Looking ahead, Nordson sees adjusted earnings per share rising 6% to 12% in fiscal 2026, with growth centered near the 9% midpoint. For the first quarter, the company expects revenue of $630 million to $670 million and adjusted earnings of $2.25 to $2.45 per share.
Nordson Corporation (NASDAQ:NDSN) designs and manufactures highly specialized, precision technologies used across a wide range of end markets. Its focus on engineered solutions, steady execution, and long-term value creation continues to define the business.
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