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In this article, we discuss top 25 Dividend Aristocrats by yield. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read Dividend Aristocrats List by Yield: Top 10 Stocks.
Investors are showing renewed interest in dividend stocks this year as the market plunges to new lows. The search for higher dividend income and yields has peeled open the importance of dividend investments in this current market environment. According to a report by Wall Street Journal, the companies in the S&P 500 paid out a record $140.6 billion in dividends in the second quarter, up from $123.4 billion paid during the same period last year.
Dividend Aristocrats — companies that have raised their dividends for 25 years or more — have outperformed the broader index over the years. Various studies revealed that dividend growers have been a reliable source of stable and regular income for investors in the past. According to a report by S&P Global, the S&P 500 High Yield Dividend Aristocrats generated a total return of 590.3%, with dividends representing 57% of the total return from December 1999 to June 2019. Some of the best dividend stocks that have raised their payouts over the years include AbbVie Inc. (NYSE:ABBV), Kimberly-Clark Corporation (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ). In this article, we will further analyze top dividend aristocrats.
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Our Methodology:
The dividend stocks mentioned below belong to the elite group of Dividend Aristocrats and have raised their payouts for 25 years or more. We selected top 25 dividend aristocrats according to their yields, as of November 14.
Dividend Aristocrats List by Yield: Top 25 Stocks
25. Expeditors International of Washington, Inc. (NASDAQ:EXPD)
Dividend Yield as of November 14: 1.18%
Expeditors International of Washington, Inc. (NASDAQ:EXPD) is an American logistics and freight forwarding company that mainly specializes in the delivery of supplies. On November 8, the company announced a quarterly dividend of $0.67 per share, in line with its previous dividend. The company is one of the best dividend stocks on our list with 28 years of consecutive dividend growth. As of November 14, the stock has a dividend yield of 1.18%.
In Q3 2022, Expeditors International of Washington, Inc. (NASDAQ:EXPD) reported revenue of $4.36 billion, which showed a 1% growth from the same period last year. At the end of September, the company had over $2.1 billion available in cash and cash equivalents, compared with $1.7 billion nine months ago.
In November, Susquehanna appreciated Expeditors International of Washington, Inc. (NASDAQ:EXPD) on reporting better-than-expected earnings and maintained its Neutral rating on the stock.
In addition to AbbVie Inc. (NYSE:ABBV), Kimberly-Clark Corporation (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ), Expeditors International of Washington, Inc. (NASDAQ:EXPD) is another important dividend aristocrat on our list.
24. Walmart Inc. (NYSE:WMT)
Dividend Yield as of November 14: 1.57%
Walmart Inc. (NYSE:WMT) is an American multinational retail company. In November, Deutsche Bank maintained its Buy rating on the stock with a $161 price target ahead of the company's Q3 earnings. The firm also appreciated the company's strong fundamentals.
Walmart Inc. (NYSE:WMT) has been raising its dividends consistently for the past 49 years, which places it as one of the best dividend stocks. It currently pays a quarterly dividend of $0.56 per share and has a dividend yield of 1.57%, as of November 14.
Walmart Inc. (NYSE:WMT) saw growth in hedge fund positions in Q2 2022, as 67 funds tracked by Insider Monkey owned stakes in the company, up from 60 in the previous quarter. These stakes have a total value of $3.78 billion.
Leaven Partners mentioned Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter. Here is what the firm has to say:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
23. Chubb Limited (NYSE:CB)
Dividend Yield as of November 14: 1.59%
Chubb Limited (NYSE:CB) is one of the world's largest insurance companies, headquartered in New Jersey, US. In Q3 2022, the company reported an operating cash flow of $3.43 billion, which shows that its cash generation is stable. During the quarter, it returned over $1.03 billion to shareholders, including $346 million in dividends. The company's shareholder obligation makes it one of the best dividend stocks to buy.
Chubb Limited (NYSE:CB) currently pays a quarterly dividend of $0.83 per share and has a dividend yield of 1.59%, as of November 14. The company's dividend growth streak stands at 29 years.
In October, Raymond James raised its price target on Chubb Limited (NYSE:CB) to $270 with a Strong Buy rating on the shares, following the company's Q3 results. The firm mentioned that the company is well-positioned to report improving underlying results in the current environment.
As of the close of Q2 2022, 35 hedge funds in Insider Monkey’s database owned stakes in Chubb Limited (NYSE:CB), up from 31 in the previous quarter. The collective value of these stakes is over $1.68 billion. Viking Global owned the largest position in the company, holding shares worth $742 million.
Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:
“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
22. Becton, Dickinson and Company (NYSE:BDX)
Dividend Yield as of November 14: 1.60%
Becton, Dickinson and Company (NYSE:BDX) is a New Jersey-based multinational medical device company that sells related products to its consumers. On November 10, the company hiked its quarterly dividend by 4.6% to $0.91 per share. This was the company's 51st consecutive year of dividend growth, which makes it one of the best dividend stocks to buy now. As of November 11, the stock has a dividend yield of 1.60%.
In November, Piper Sandler maintained a Neutral rating on Becton, Dickinson and Company (NYSE:BDX) with a $245 price target, following the company's fiscal Q4 results. The firm highlighted the company's base organic growth that beat Street estimates.
As of the close of Q2 2022, 42 hedge funds had stakes in Becton, Dickinson and Company (NYSE:BDX), compared with 49 in the previous quarter, as per Insider Monkey’s data. These stakes have a collective value of over $2.17 billion.
21. Archer-Daniels-Midland Company (NYSE:ADM)
Dividend Yield as of November 14: 1.70%
Archer-Daniels-Midland Company (NYSE:ADM) is a Chicago-based food processing company that owns over 270 food processing plants across the globe. The company was a part of 42 hedge fund public portfolios in Q2 2022, the same as in the previous quarter, according to Insider Monkey's database. The stakes owned by these hedge funds have a total value of $659 million.
Archer-Daniels-Midland Company (NYSE:ADM) is one of the best dividend stocks on our list as it paid $677 million to shareholders in dividends during Q3 2022. The company holds a 49-year track of dividend growth and has paid dividends for 90 years in a row. Its current quarterly payout stands at $0.40 per share with a dividend yield of 1.70%, as of November 14.
Baird raised its price target on Archer-Daniels-Midland Company (NYSE:ADM) to $98 in October with an Outperform rating on the shares. The firm mentioned that the company's management continued to add value to shareholders through acquisitions and share repurchases.
Diamond Hill Capital mentioned Archer-Daniels-Midland Company (NYSE:ADM) in its Q1 2022 investor letter. Here is what the firm has to say:
“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
20. McCormick & Company, Incorporated (NYSE:MKC)
Dividend Yield as of November 14: 1.77%
An American multinational food company, McCormick & Company, Incorporated (NYSE:MKC) is another best dividend stock on our list. It currently pays a quarterly dividend of $0.37 per share for a dividend yield of 1.77%, as of November 14. The company has raised its dividends consistently for the past 36 years.
In the third quarter of 2022, McCormick & Company, Incorporated (NYSE:MKC) reported revenue of $1.6 billion, which showed a 3.2% growth from the same period last year. The company's operating cash flow in the first nine months came in at $250 million. It also paid over $300 million in dividends to shareholders during the quarter.
As of the end of Q2 2022, 33 hedge funds tracked by Insider Monkey owned investments in McCormick & Company, Incorporated (NYSE:MKC), with a total value of over $1.48 billion.
19. Pentair plc (NYSE:PNR)
Dividend Yield as of November 14: 1.83%
Pentair plc (NYSE:PNR) is a Minnesota-based water treatment company that provides industrial water management across the country. In its recently-announced Q3 2022 report, the company posted revenue of $1.06 billion, which showed a 9.4% growth from the same period last year. The company's operating cash flow for the quarter came in at $95 million and its free cash flow amounted to $72 million.
Pentair plc (NYSE:PNR) has been raising its dividends consistently for the past 46 years, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.21 per share and has a dividend yield of 1.83%, as of November 14.
In October, JPMorgan resumed its coverage on Pentair plc (NYSE:PNR) with a Neutral rating due to its capital deployment for acquisitions and strong balance sheet.
At the end of Q2 2022, 31 hedge funds in Insider Monkey’s database owned stakes in Pentair plc (NYSE:PNR), down from 38 a quarter earlier. These stakes hold a collective value of nearly $947 million. Impax Asset Management was the company’s leading stakeholder in Q2.
18. Caterpillar Inc. (NYSE:CAT)
Dividend Yield as of November 14: 2.04%
Caterpillar Inc. (NYSE:CAT) manufactures industrial and construction equipment. It also specializes in mining equipment, diesel, and natural gas engines. In October, Baird raised its price target on the stock to $242 with an Outperform rating on the shares, following the company's solid Q3 earnings beat. The firm expects the company to show growth in demand in the upcoming quarters.
In the first nine months of the year, Caterpillar Inc.'s (NYSE:CAT) operating cash flow stood at $5 billion. Its revenue for the third quarter came in at $15 billion, up 21% from the same period last year. The company is one of the best dividend stocks as it paid $2 billion to shareholders in dividends during the quarter.
On October 12, Caterpillar Inc. (NYSE:CAT) declared a quarterly dividend of $1.20 per share, which fell in line with its previous dividend. The company maintains a 28-year streak of consistent dividend growth. The stock's dividend yield on November 14 came in at 2.04%.
As of the close of Q2 2022, 45 hedge funds tracked by Insider Monkey owned stakes in Caterpillar Inc. (NYSE:CAT), compared with 54 in the previous quarter. These stakes are collectively valued at over $3.25 billion.
Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q1 2022 investor letter. Here is what the firm had to say:
“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”
17. NextEra Energy, Inc. (NYSE:NEE)
Dividend Yield as of November 14: 2.05%
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company. In September, BMO Capital raised its price target on the stock to $100 with an Outperform rating on the shares. The firm highlighted the company's industry-leading profile within the sector.
On October 14, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.425 per share, consistent with its previous dividend. The company has been raising its dividends for the past 26 years. As of November 14, the stock has a dividend yield of 2.05%.
In its Q3 2022 report, NextEra Energy, Inc. (NYSE:NEE) mentioned that it expects a 10% annual dividend per share growth through 2024. At the end of the quarter, the company's cash available for distribution came in at $185 million, up from $158 million during the same period last year. Its revenue stood at $6.72 billion, which showed a 53.8% growth from the prior-year quarter.
As of the close of Q2 2022, 59 hedge funds tracked by Insider Monkey owned stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 64 in the previous quarter. These stakes hold a collective value of $2.76 billion.
ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world and energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.
The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”
16. General Dynamics Corporation (NYSE:GD)
Dividend Yield as of November 14: 2.05%
General Dynamics Corporation (NYSE:GD) specializes in aerospace and defense-related equipment, including submarines and communication systems. In Q3 2022, the company reported an operating cash flow of $1.3 billion, which represented 142% of its earnings. The company's free cash flow came in at $1 billion. It generated $10 billion in revenues during the quarter, which saw a 4.5% growth from the same period last year.
General Dynamics Corporation (NYSE:GD) currently offers a per-share dividend of $1.26. In 2022, the company extended its dividend growth streak to 25 years, falling into the category of dividend aristocrats. Its free cash flow, dividend growth streak, and solid balance sheet make it one of the best dividend stocks on our list. The stock's dividend yield on November 14 came in at 2.05%.
In October, BofA raised its price target on General Dynamics Corporation (NYSE:GD) to $325 with a Buy rating on the shares, as the company showed growth across its all businesses in Q3.
As per Insider Monkey’s Q2 2022 database, 42 hedge funds owned stakes in General Dynamics Corporation (NYSE:GD), down from 47 in the previous quarter. These stakes are valued at roughly $7.7 billion, compared with $8.4 billion worth of stakes owned by hedge funds in the previous quarter.
15. McDonald's Corporation (NYSE:MCD)
Dividend Yield as of November 14: 2.23%
An American multinational fast-food chain, McDonald's Corporation (NYSE:MCD) has shown growth in its business over the years. The company's earnings remained stable in Q3 2022 with $5.8 billion in revenues, which beat Street estimates by $170 million. It also showed growth in its global comparable sales and systemwide sales in Q3 by 10% and 2%, respectively.
On October 14, McDonald's Corporation (NYSE:MCD) declared a 10% hike in its quarterly dividend to $1.52 per share. Through this increase, the company stretched its dividend growth track record to 46 years, which makes it one of the best dividend stocks on our list. As of November 14, the stock has a dividend yield of 2.23%.
RBC Capital raised its price target on McDonald's Corporation (NYSE:MCD) to $295 in October with an Outperform rating on the shares. The firm appreciated the company's recent quarterly earnings and its overall fundamentals.
Bridgewater Associates was the largest stakeholder of McDonald's Corporation (NYSE:MCD) in Q2 2022. Along with this, 50 hedge funds tracked by Insider Monkey owned stakes in the company, worth $2.3 billion collectively.
14. Air Products and Chemicals, Inc. (NYSE:APD)
Dividend Yield as of November 14: 2.24%
Air Products and Chemicals, Inc. (NYSE:APD) is an American chemical industry company that sells gases and chemicals for industrial uses. The company currently pays a quarterly dividend of $1.42 per share for a dividend yield of 2.24%, as of November 14. It has a 40-year run of raising its dividends, which makes it one of the best dividend stocks on our list.
In fiscal Q4 2022, Air Products and Chemicals, Inc. (NYSE:APD) reported revenue of $3.57 billion, which showed a 25.7% growth from the same period last year. The company's operating cash flow for the quarter came in at over $3.1 billion. It also paid $1.3 billion in dividends to shareholders during the quarter.
BofA raised its price target on Air Products and Chemicals, Inc. (NYSE:APD) to $308 in November with a Neutral rating on the shares, as the company beat consensus estimates in the recent quarter. The firm mentioned that mobility remains a key long-term growth driver for the company.
As per Insider Monkey's Q2 2022 database, 33 hedge funds owned investments in Air Products and Chemicals, Inc. (NYSE:APD), worth over $375 million.
Madison Funds mentioned Air Products and Chemicals, Inc. (NYSE:APD) in its Q2 2022 investor letter. Here is what the firm has to say:
“This quarter we are highlighting Air Products and Chemicals, Inc. (NYSE:APD) as a relative yield example in the Materials sector. APD is a leading global industrial gas supply company and is the largest supplier of hydrogen and helium in the world. It has a sustainable competitive advantage due to long-term customer relationships and contracts, high customer switching costs, and the missioncritical nature of its products. Industrial gases are a relatively small fraction of customers’ overall costs but are crucial to ensure uninterrupted production. (Click here to read full text)
13. Aflac Incorporated (NYSE:AFL)
Dividend Yield as of November 14: 2.27%
Aflac Incorporated (NYSE:AFL) is a Georgia-based insurance company that provides supplemental insurance in the US. In Q3 2022, the company reported revenue of $4.8 billion, which beat Street estimates by $240 million. At the end of September, it had total cash and investments worth over $114.5 billion, which shows that its cash generation is strong for shareholder return. During the quarter, the company also repurchased shares worth over $650 million.
On November 8, Aflac Incorporated (NYSE:AFL) declared a quarterly dividend of $0.42 per share, having raised the payout by 5%. 2022 was the company's 40th consecutive year of dividend growth, which places it as one of the best dividend stocks on our list. The stock's dividend yield on November 14 came in at 2.27%.
At the end of Q2 2022, 32 hedge funds tracked by Insider Monkey had over $340.6 million invested in the company. In the previous quarter, 32 hedge funds owned $377.6 million worth of stakes in the company.
12. Cardinal Health, Inc. (NYSE:CAH)
Dividend Yield as of November 14: 2.58%
Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare services company that mainly provides cost-effective treatments to its patients. Presenting a positive outlook on pharma distribution companies in the current market, Baird raised its price target on CAH to $82 in November and maintained a Neutral rating on the shares. The firm also appreciated the company's improving underlying business fundamentals.
In fiscal Q1 2023, Cardinal Health, Inc. (NYSE:CAH) reported revenue of $49.6 billion, which saw a 13% year-over-year growth. The company ended the quarter with $3.5 billion available in cash and cash equivalents with its total assets amounting to $43.3 billion.
On November 8, Cardinal Health, Inc. (NYSE:CAH) announced a quarterly dividend of $0.4957 per share, in line with its previous dividend. The company holds a 36-year track record of consistent dividend growth and has a dividend yield of 2.58%, as recorded on November 14.
Cardinal Health, Inc. (NYSE:CAH) was a popular stock among elite funds in Q2 2022, as 44 hedge funds tracked by Insider Monkey owned stakes in the company, up from 38 in the previous quarter. These stakes hold a collective value of $814.8 million. With nearly 3 million shares, Pzena Investment Management owned the largest position in the company in Q2.
11. Atmos Energy Corporation (NYSE:ATO)
Dividend Yield as of November 14: 2.68%
Atmos Energy Corporation (NYSE:ATO) is a Texas-based natural gas distribution company that serves over 3 million customers. The company announced an 8.8% hike in its quarterly dividend on November 9 to $0.74 per share. This marked the company's 38th consecutive year of dividend growth. Moreover, it has paid dividends to shareholders consistently for the past 156 quarters, which makes it one of the best dividend stocks to buy alongside AbbVie Inc. (NYSE:ABBV), Kimberly-Clark Corporation (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ).
In November, Credit Suisse raised its price target on Atmos Energy Corporation (NYSE:ATO) to $121 with an Outperform rating on the shares, highlighting the company's recent quarterly earnings and long-term outlook.
Atmos Energy Corporation (NYSE:ATO) saw a positive hedge fund sentiment in Q2 2022, as 21 hedge funds in Insider Monkey's database owned stakes in the company, growing from 16 in the previous quarter. The stakes owned by these hedge funds are collectively worth over $852.5 million.
Aristotle Capital Management mentioned Atmos Energy Corporation (NYSE:ATO) in its Q1 2022 investor letter. Here is what the firm has to say:
“Headquartered in Dallas, Atmos Energy is the largest fully regulated natural gas-only utility in the U.S. It serves over three million distribution customers across eight states, primarily in the South. Approximately 70% of its revenue comes from Texas, where it owns one of the largest natural gas pipeline systems in the state. (Click here to view the full text)
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Disclosure. None. Dividend Aristocrats List by Yield: Top 25 Stocks is originally published on Insider Monkey.
