Dividend aristocrats, or companies that have paid and raised dividends for at least 25 years are some of the best value stocks to buy and hold. Many of them have solid balance sheets and a long record of doing well for their share holders. Here are some of the best dividend aristocrat stocks to buy.
Procter & Gamble (PG)
Procter & Gamble is one of the best blue-chip stocks to buy. While it is characterized as a dividend aristocrat, it is actually a dividend king since it has boosted its payouts for over 68 years.
P&G is a good stock to buy because of its multiple brands, which have a commanding market share across several areas. Some of these brands are popular names like Pampers, Ariel, Downy, Always, and Gilette.
P&G’s business is growing modestly, with its annual revenue growing from $70.9 billion in 2020 to $84 billion in the last financial year. It has a solid balance sheet and high free cash flows that will help it continue growing its dividends.
S&P Global (SPGI)
S&P Global is another quality dividend aristocrat stock to buy and hold. Like P&G, it is a dividend king that has boosted its payouts for over 51 years.
S&P Global is a firm that offers numerous services like data and analytics, credit ratings, indices, and technology solutions. It operates as a duopoly in its credit rating business, where it competes with Moody’s and Fitch.
S&P Global’s business has grown over the years, with its annual revenue moving from $6.7 billion in 2019 to near $13 billion in 2023. This growth will likely continue in the next few years as demand for its ratings and index services rise.
Ecolab (ECL)
Ecolab is a top dividend aristocrat that has raised its dividends for over 32 years. It is a top player in the water and hygiene industry, offering solutions in industries like food and beverages, life sciences, building, and manufacturing.
Ecolab’s business has grown, with its annual revenue jumping from $12.5 billion in 2019 to $15.3 billion last year. It is also a highly profitable company that generates over $1 billion in annual profits. Most importantly, it has a large market share across the water and hygiene business, which will help it to keep growing.
Automatic Data Processing (ADP)
Automatic Data Processing is a company that many Americans have never heard about. Yet, it is a leading market leader in the payroll industry and a dividend aristocrat that has raised payouts for over 26 year. It is used by most companies like Amazon, Pfizer, T-Mobile, John Deere, and Honeywell. Some of its services are payroll, time and attendance, benefits and insurance, and compliance.
Like the other dividend aristocrats, ADP’s business has grown as it added more customers and the number of workers rose. Its annual revenue rose from over $14 billion in 2020 to $18.7 billion. Analysts expect that its revenue will hit $20 billion and $21 billion in 2024 and 2025, a trend that may continue.
Johnson & Johnson (JNJ)
Johnson & Johnson is a top company in the pharmaceutical industry. It is a dividend aristocrat that has grown its dividend for over 62 years. Together with Microsoft, it is the only company with a Triple A credit rating. The company has a leading market share in key industries and a payout ratio of about 50%.
Other top dividend aristocrat stocks
The other top quality dividend aristocrat stocks to buy and hold are Fastenal, Emerson Electric, Pentair, Kenvue, Nordson, and McDonalds.
Read more: Illinois Tool Works (ITW): dividend aristocrat stock hits record high
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