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| Source:AI |
When it comes to investments you can rely on, there’s a special group of dividend stocks called “dividend aristocrats.” These companies are different because they have been really consistent and dependable. They didn’t cut their dividend payments even during tough times like recessions and crises.
To become a dividend aristocrat, a company needs to be in the S&P 500 index and have a great record of increasing their dividend payments every year for at least 25 years in a row. There are more than 60 stocks in this special group. They have always rewarded their investors by giving them good returns and they’re really committed to making their shareholders happy.
For many years, these dividend aristocrats have been trusted by investors to give them a stable and growing income. They have proven that they can handle different market situations and still pay their dividends. This shows that they are financially strong, have good management, and care about their shareholders.
If you want a reliable income and want your money to grow over time, investing in dividend aristocrats can be a good choice. These stocks have shown that they can handle economic uncertainties and give consistent returns. That’s why many investors like to have them in their portfolios because they bring stability.
According to CFRA Research analysts, Here are 7 of the best dividend aristocrat stocks to buy now.
S&P Global Inc. (SPGI)
S&P Global is a renowned provider of credit ratings, benchmarks, research, and analytics for investors and market participants. According to analyst Alexander Yokum, S&P’s ratings business experienced a low point in the latter half of 2022 but is expected to bounce back in 2023 and 2024.
Yokum highlights a few factors that contribute to the anticipated growth of S&P Global. Firstly, a stable interest rate environment and reduced macroeconomic uncertainty are expected to act as catalysts for the company’s expansion. Additionally, S&P’s acquisition of IHS Markit is projected to diversify its business and decrease volatility, which further enhances its growth prospects.
One attractive aspect of investing in S&P Global is its dividend. Currently, the company offers a dividend yield of 0.9%, which indicates a return on investment through regular dividend payments. Impressively, S&P has raised its dividend payout for 50 consecutive years, showcasing a long-standing commitment to rewarding its shareholders.
CFRA, a leading independent research provider, has assigned a “buy” rating for SPGI stock, expressing a positive outlook on its investment potential. Furthermore, CFRA has set a price target of $435 for SPGI stock.
RPM International Inc. (RPM)
RPM International is a company that specializes in producing specialty chemicals for various industrial and specialty applications. These applications include DIY projects as well as repairs and remodeling tasks. Analyst Emily Nasseff Mitsch believes that RPM shares are currently undervalued, presenting an opportunity for potential growth. Mitsch points out that the growth in manufacturing and nonresidential institutional construction spending will act as positive demand drivers for RPM International.
According to Mitsch, RPM International is heavily exposed to manufacturing and institutional construction spending. This exposure positions the company to benefit from the trend of “reshoring,” which involves bringing previously outsourced jobs back to the United States. This trend is expected to contribute to the growth of manufacturing and institutional construction spending, further benefiting RPM.
Mitsch anticipates that RPM International will experience elevated revenue and earnings despite any weakness in its consumer segment. While the consumer segment may face challenges, the overall outlook for the company remains positive due to its strong positioning in manufacturing and institutional construction.
One appealing aspect of investing in RPM International is its dividend. The company currently offers a dividend yield of 2%, indicating a return on investment through regular dividend payments. Remarkably, RPM has consistently increased its dividend payout for 49 consecutive years, demonstrating a long-standing commitment to rewarding its shareholders.
CFRA has assigned a “buy” rating for RPM stock, indicating a positive investment outlook. CFRA has also set a price target of $92 for RPM stock.
Dover Corp. (DOV)
Dover is a company that specializes in industrial machinery, manufacturing equipment, and specialized industrial products. What sets Dover apart is its impressive track record of raising its dividend for 67 consecutive years, making it one of the most consistent dividend aristocrats.
Analyst Jonathan Sakraida believes that Dover’s strategic actions, such as cost-cutting measures and portfolio adjustments to focus on products that require less capital investment and offer higher margins, will drive long-term growth in earnings. These actions position Dover to outperform its industry peers.
Sakraida projects a revenue growth of 5% for Dover in 2023, indicating positive prospects for the company’s financial performance.
In addition to its potential for growth, Dover also offers a dividend payout. Currently, the company pays a dividend with a yield of 1.4%. This means that investors can expect a return on their investment through regular dividend payments.
CFRA has given a “buy” rating for DOV stock, indicating a positive view of its investment potential. CFRA has also set a price target of $168 for DOV stock.
Parker-Hannifin Corp. (PH)
Parker-Hannifin is a company that specializes in producing industrial systems for motion and control, including pneumatic, hydraulic, and vacuum systems. Analyst Sakraida believes that Parker-Hannifin has a positive outlook for generating free cash flow, which is an important indicator of a company’s financial health.
Sakraida also points out that the aerospace industry is in the early stages of a cyclical recovery. This recovery is expected to benefit Parker-Hannifin, as the company has a strong presence in the aerospace sector. Additionally, Parker-Hannifin’s strategic acquisitions and investments have positioned the company to be more resilient during future downturns, which is a positive attribute.
Sakraida expresses a positive view on Parker-Hannifin’s acquisition of Meggitt, as it will enhance the company’s offerings in the aerospace and defense sectors. This acquisition is seen as a valuable strategic move.
Furthermore, Sakraida emphasizes that reducing debt levels will be a top priority for Parker-Hannifin, indicating the company’s commitment to strengthening its financial position.
In terms of dividends, Parker-Hannifin offers a dividend with a yield of 1.6%. This means that investors can receive a regular return on their investment through dividend payments. Remarkably, Parker-Hannifin has consistently increased its dividend payout for 66 consecutive years, demonstrating a strong commitment to rewarding shareholders.
CFRA has assigned a “buy” rating for PH stock, indicating a positive outlook on its investment potential. CFRA has also set a price target of $380 for PH stock.
Coca-Cola Co. (KO)
Coca-Cola is a globally recognized brand and the leading producer of soft drinks worldwide. According to analyst Garrett Nelson, Coca-Cola’s brands continue to hold significant value. He also expects that the impact of currency fluctuations on the company’s financials will lessen in 2023.
Furthermore, the resolution of Coca-Cola’s tax dispute with the Internal Revenue Service is anticipated to remove a major concern for investors. This development will shift attention back to the company’s attractive underlying business strengths and its valuation. Nelson predicts a 5% growth in revenue for Coca-Cola in 2023, reflecting positive prospects for the company’s financial performance.
In terms of dividends, Coca-Cola offers a dividend yield of 3%. This means that investors can earn a regular return on their investment through dividend payments. Impressively, Coca-Cola has consistently increased its dividend payout for 61 consecutive years, demonstrating a strong commitment to rewarding its shareholders.
CFRA has assigned a “buy” rating for KO stock, indicating a positive outlook on its investment potential. CFRA has also set a price target of $70 for KO stock.
Abbott Laboratories (ABT)
Abbott Laboratories is a global healthcare company that operates across various sectors, including branded generic pharmaceuticals, medical devices, nutritional products, and diagnostic solutions. Analyst Paige Meyer believes that Abbott’s combination of highly innovative products, a strong financial position, and a growing dividend will enable the company to expand its market share and outperform its peers in the long run.
However, it’s important to note that Abbott’s sales in the near term may be impacted by a decline in COVID-19-related product sales. Meyer projects an 8% decrease in revenue for this year due to this factor. Despite this short-term challenge, Abbott’s overall outlook remains positive.
One appealing aspect of investing in Abbott is its dividend. Currently, the company offers a dividend yield of 1.9%, providing investors with a regular return on their investment through dividend payments. Remarkably, Abbott has consistently increased its dividend payout for 51 consecutive years, demonstrating its commitment to rewarding shareholders.
CFRA has assigned a “buy” rating for ABT stock, indicating a positive view on its investment potential. CFRA has also set a price target of $130 for ABT stock.
PepsiCo Inc. (PEP)
PepsiCo is a well-known global company that specializes in the production of beverages and snacks. According to analyst Nelson, PepsiCo represents an attractive investment opportunity due to its favorable valuation as a blue-chip company. The company exhibits stable earnings, low volatility, and maintains a healthy balance sheet.
One notable advantage of PepsiCo is its portfolio of valuable brands, which enables the company to increase prices and effectively pass on rising costs to consumers. Nelson identifies two primary drivers of long-term growth for PepsiCo: strong sales in its Frito-Lay division and expansion into international markets.
Looking ahead, Nelson projects a 6% growth in revenue for PepsiCo in 2023, followed by a 4% growth in 2024. These forecasts indicate positive prospects for the company’s financial performance in the coming years.
In terms of dividends, PepsiCo offers a dividend yield of 2.7%. This means that investors can receive a regular return on their investment through dividend payments. Impressively, PepsiCo has consistently increased its dividend payout for 50 consecutive years, showcasing its commitment to rewarding shareholders.
CFRA has assigned a “strong buy” rating for PEP stock, expressing a particularly positive outlook on its investment potential. CFRA has also set a price target of $220 for PEP stock.
