Top 10 Best Dividend Aristocrats

Up to date on November 1st, 2023 by Bob Ciura

The Dividend Aristocrats are among the many finest dividend development shares to purchase and maintain for the long-run. Dividend Aristocrats have wonderful enterprise fashions which have produced annual dividend will increase, even throughout recessions.

With this in thoughts, we’ve got created a downloadable record of all of the Dividend Aristocrats.

There are at the moment 67 Dividend Aristocrats. You possibly can obtain an Excel spreadsheet of all 67 (with metrics that matter akin to dividend yields and price-to-earnings ratios) by clicking the hyperlink beneath:

This text will focus on the ten finest Dividend Aristocrats now, primarily based on 5-year anticipated annual returns based on the Positive Evaluation Analysis Database.

Desk of Contents

You possibly can immediately soar to any particular part of the article by utilizing the hyperlinks beneath:

Dividend Aristocrat #10: PPG Industries (PPG)

5-year Anticipated Annual Returns: 13.3%

PPG Industries is the world’s largest paints and coatings firm. Its solely rivals of comparable measurement are Sherwin Williams and Dutch paint firm Akzo Nobel. PPG Industries was based in 1883 as a producer and distributor of glass (its title stands for Pittsburgh Plate Glass) and immediately has roughly 3,500 technical workers positioned in additional than 70 international locations at 100 places.

On July twentieth, 2023, PPG Industries raised its quarterly dividend 4.8% to $0.65, extending the corporate’s dividend development streak to 52 consecutive years.

On October 18th, 2023, PPG Industries introduced third quarter outcomes for the interval ending September thirtieth, 2023. Income improved 3.8% to a quarterly report $4.64 billion, which was in-line with estimates. Adjusted web earnings of $493 million, or $2.07 per share, in comparison with adjusted web earnings of $393 million, or $1.66 per share, within the prior yr. Adjusted earnings-per-share was $0.13 greater than anticipated.

Click on right here to obtain our most up-to-date Positive Evaluation report on PPG (preview of web page 1 of three proven beneath):

Dividend Aristocrat #9: Computerized Knowledge Processing (ADP)

5-year Anticipated Annual Returns: 14.0%

Computerized Knowledge Processing is without doubt one of the largest enterprise companies outsourcing firms on the planet. The corporate offers payroll companies, human assets expertise, and different enterprise operations to greater than 700,000 company prospects.

With 48 years of consecutive dividend will increase, it’s also a member of the distinguished Dividend Aristocrats Index.

ADP posted fourth quarter and full-year earnings on July twenty sixth, 2023, and outcomes had been higher than anticipated on each the highest and backside traces. Adjusted earnings-per-share got here to $1.89, which was six cents forward of estimates. Income was up 8% to $4.5 billion, which was $110 million forward of expectations.

Natural, fixed forex income grew 9% yr over-year. Employer Providers income was up 11%, whereas new enterprise bookings rose 10%. PEO Providers income rose 4%. Adjusted web earnings had been up 25% to $781 million, whereas adjusted EBIT rose 23% to $1 billion. As a share of income, adjusted EBIT was up 270 foundation factors to 22.5%.

Click on right here to obtain our most up-to-date Positive Evaluation report on ADP (preview of web page 1 of three proven beneath):

Dividend Aristocrat #8: Stanley Black & Decker (SWK)

5-year Anticipated Annual Returns: 14.3%

Stanley Black & Decker is a world chief in energy instruments, hand instruments, and associated gadgets. The corporate holds the highest world place in instruments and storage gross sales. Stanley Black & Decker is second on the planet within the areas of business digital safety and engineered fastening.

Supply: Investor Presentation

Stanley Works and Black & Decker merged in 2010 to kind the present firm, thought the corporate can hint its historical past again to 1843. Black & Decker was based in Baltimore, MD in 1910 and manufactured the world’s first moveable energy device.

On August 1st, 2023, Stanley Black & Decker introduced second quarter outcomes for the interval ending June thirtieth, 2023. For the quarter, income fell 5.3% to $4.2 billion, however this was $70 million greater than anticipated. Adjusted earnings-per-share of -$0.11 in contrast very unfavorably to $1.77 within the prior yr, however was $0.25 above expectations.

Click on right here to obtain our most up-to-date Positive Evaluation report on SWK (preview of web page 1 of three proven beneath):

Dividend Aristocrat #7: Medtronic plc (MDT)

5-year Anticipated Annual Returns: 14.6%

Medtronic is the biggest producer of biomedical units and implantable applied sciences on the planet. It serves physicians, hospitals, and sufferers in additional than 150 international locations and has over 90,000 workers. Medtronic has 4 working segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes.

Medtronic has raised its dividend for 46 consecutive years.

In late August, Medtronic reported (8/22/23) monetary outcomes for the primary quarter of fiscal yr 2024. Natural income grew 6% over final yr’s quarter due to uniform natural development of 6% in every of the 4 segments and adjusted earnings-per-share rose 6% due to an enchancment in product availability and the introduction of latest merchandise.

As well as, due to improved enterprise momentum, Medtronic raised its steerage for 2024. It expects 5% natural income development (vs. 4%-5% beforehand) and earnings-per-share of $5.08-$5.16.

Click on right here to obtain our most up-to-date Positive Evaluation report on MDT (preview of web page 1 of three proven beneath):

Dividend Aristocrat #6: Sysco Company (SYY)

5-year Anticipated Annual Returns: 14.8%

Sysco Company is the biggest wholesale meals distributor in the US. The corporate serves 600,000 places with meals supply, together with eating places, hospitals, colleges, motels, and different amenities. In keeping with estimates, the corporate has a 16% market share of complete meals supply inside the US.

On August 1st, 2023, Sysco reported fourth-quarter outcomes for Fiscal 12 months (FY) 2023. Within the fourth quarter, Sysco achieved a 4.1% gross sales enhance in comparison with the identical interval within the earlier fiscal yr, with U.S. Foodservice quantity rising by 2.3%. Adjusted EPS rose by 16.5% to $1.34, in comparison with the earlier fiscal yr.

For your entire fiscal yr 2023, Sysco grew income by 11% with a 5.2% rise in U.S. Foodservice quantity. Adjusted earnings-per-share elevated 23% to $4.01.

Click on right here to obtain our most up-to-date Positive Evaluation report on SYY (preview of web page 1 of three proven beneath):

Dividend Aristocrat #5: Goal Company (TGT)

5-year Anticipated Annual Returns: 14.9%

Goal is a reduction retail operations solely within the U.S. market. Its enterprise consists of about 2,000 large field shops providing basic merchandise and meals and serving as distribution factors for its burgeoning e-commerce enterprise.

Supply: Investor Presentation

Goal posted second quarter earnings on August sixteenth, 2023, and outcomes had been considerably combined. Adjusted earnings-per-share got here in nicely forward of estimates at $1.80, which was 38 cents higher than anticipated. Income was $24.8 billion, down 4.9% year-over-year, and lacking estimates by $460 million.

Click on right here to obtain our most up-to-date Positive Evaluation report on Goal Company (preview of web page 1 of three proven beneath):

Dividend Aristocrat #4: Lowe’s Firms (LOW)

5-12 months Anticipated Annual Returns: 15.6%

Lowe’s Firms is the second-largest residence enchancment retailer within the US (after Residence Depot). Lowe’s operates or companies greater than 1,700 residence enchancment and {hardware} shops within the U.S.

Lowe’s reported second quarter 2023 outcomes on August twenty second, 2023. Whole gross sales for the second quarter got here in at $25 billion in comparison with $27.5 billion in the identical quarter a yr in the past. Comparable gross sales decreased 1.6% and web earnings declined 2.4% year-over-year to $4.56 per share.

The corporate repurchased 10.1 million shares within the second quarter for $2.2 billion. Moreover, it paid out $624 million in dividends. Lowe’s launched same-day supply nationwide, and expanded its rural merchandising framework to 300 shops.

The corporate reaffirmed its fiscal 2023 outlook and believes it might probably obtain adjusted diluted EPS within the vary of $13.20 to $13.60 on complete gross sales of roughly $88 billion.

Click on right here to obtain our most up-to-date Positive Evaluation report on Lowe’s (preview of web page 1 of three proven beneath):

Dividend Aristocrat #3: Walgreens Boots Alliance (WBA)

5-year Anticipated Annual Returns: 18.7%

Walgreens Boots Alliance is the biggest retail pharmacy in the US and Europe. The corporate has a presence in additional than 9 international locations by means of its flagship Walgreens enterprise and different enterprise ventures.

Supply: Investor Presentation

On June twenty seventh, 2023, Walgreens reported outcomes for the third quarter of fiscal 2023. Gross sales grew 9% however earnings-per-share rose solely 3% over final yr’s quarter, from $0.97 to $1.00, principally attributable to excessive COVID-19 vaccinations and exams in final yr’s interval. Earnings-per-share missed the analysts’ consensus by $0.07.

It was the primary earnings miss after 11 quarters in a row. Because the pandemic has subsided, Walgreens is going through robust comparisons. It lowered its steerage for earnings-per-share from $4.45-$4.65 to $4.00-$4.05.

Click on right here to obtain our most up-to-date Positive Evaluation report on Walgreens Boots Alliance (preview of web page 1 of three proven beneath):

Dividend Aristocrat #2: 3M Firm (MMM)

5-year Anticipated Annual Returns: 20.2%

3M sells greater than 60,000 merchandise which can be used daily in houses, hospitals, workplace buildings and colleges across the world. It has about 95,000 workers and serves prospects in additional than 200 international locations.

3M is now composed of 4 separate divisions: Security & Industrial, Healthcare, Transportation & Electronics, and Client. 

The corporate additionally introduced that it could be spinning off its Well being Care phase right into a standalone entity.

The brand new 3M will include the segments which generated $26.8 billion in gross sales in 2021, whereas the healthcare spin-off will retain the product portfolio, which generated $8.6 billion in gross sales in 2021.

Supply: Investor Presentation

On October twenty fifth, 2022, 3M reported third-quarter earnings outcomes. Income decreased by 3.8% to $8.6 billion and was $100 million lower than analyst expectations. Adjusted earnings-per-share of $2.69 in comparison with $2.45 within the prior yr and beat estimates by $0.10.

3M’s innovation is without doubt one of the firm’s best aggressive benefits. The corporate targets R&D spending equal to six% of gross sales (or roughly $2 billion yearly) to be able to create new merchandise to fulfill shopper demand.

Click on right here to obtain our most up-to-date Positive Evaluation report on 3M Firm (preview of web page 1 of three proven beneath):

Dividend Aristocrat #1: Albemarle Company (ALB)

5-year Anticipated Annual Returns: 38.1%

Albemarle is the biggest producer of lithium and second largest producer of bromine on the planet. The 2 merchandise account for practically two-thirds of annual gross sales. Albemarle produces lithium from its salt brine deposits within the U.S. and Chile. The corporate has two joint ventures in Australia that additionally produce lithium.

Associated: 2023 Lithium Shares Checklist

Supply: Investor Presentation

Within the second quarter, income grew 60.1% to $2.37 billion, however missed estimates by $20 million. Adjusted earnings-per-share of $7.33 in contrast very favorably to $3.45 within the prior yr and was $2.81 above estimates.

For the quarter, income for Vitality Storage grew 119.7% to $1.76 billion, attributable to greater costs and a 36% enchancment in volumes from the corporate’s enlargement in Chile and a brand new processing plant in China.

Click on right here to obtain our most up-to-date Positive Evaluation report on Albemarle (preview of web page 1 of three proven beneath):

Last Ideas

The Dividend Aristocrats are wonderful choices for buyers on the lookout for a constant earnings stream, together with annual dividend will increase.

Our record of the ten finest Dividend Aristocrats contains firms from quite a lot of industries that rank extremely primarily based on our 5-year anticipated complete return forecasts.

In case you are focused on discovering high-quality dividend development shares and/or different high-yield securities and earnings securities, the next Positive Dividend assets shall be helpful: