3 Dividend Aristocrats With Soaring Profits That Wall Street Says to Buy Now

A long dividend streak is impressive, but it means more when the business behind it is still growing.

When investors look for income, it is easy to focus only on dividend yield. But a high yield alone does not always mean a strong investment. The better question is whether the company can support that dividend with real earnings, a healthy payout ratio, and a business model that can keep moving forward.

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That is what makes companies on the Dividend Aristocrats list worth watching. These are S&P 500 listed companies that have paid and increased their dividends for at least 25 consecutive years, even through changing markets and difficult business environments.

But for this list, dividend yield and consistency alone will not cut it. I want to find the top Aristocrats with improving profitability and earnings strength. So that’s what I’m screening for today.

How I Came Up With The Following Stocks

Using Barchart’s Stock Screener, I selected the following filters to get my list:

• Dividend Payout Ratio: 35-65%. This range suggests that the company rewards shareholders without overextending itself.

• Net Income Growth Last Yr (%): 10% or higher. I am looking for companies that have shown strong profitability.

• Number of Analysts: 12 or more. The higher the number, the stronger the consensus.

• Current Analyst Rating: 3.5 to 5. These are considered “Buy-rated” stocks over at Wall Street.

• Dividend Investing Ideas: Dividend Aristocrats.

I set the screen, hit results, and got eight companies. I’ll cover the three stocks with the highest net income growth last year.

Let’s start with the first Dividend Aristocrat:

Johnson & Johnson (JNJ)

Johnson & Johnson is one of the world’s largest healthcare companies around, focused on medicines and medical technology. A key part of its business is cancer care, where the company continues to advance treatments for serious diseases. In its recent oncology update, the company said it will present more than 20 studies at the 2026 American Society of Clinical Oncology meeting, highlighting the company’s focus on oncology research as a growth driver.

Johnson & Johnson’s annual net income grew over 90% in 2025, and it has also raised its dividends for 64 consecutive years, making it a Dividend King as well as an Aristocrat.

The company pays $5.36 per share per year after its latest increase, translating to a yield of approximately 2.4%. It also has a dividend payout ratio of around 48%, suggesting a balance between shareholder returns and company growth.

Meanwhile, a consensus among 25 analysts rates JNJ stock a “Moderate Buy,” with the mean and high target prices suggesting between 16% and 27% potential upside.

International Business Machines (IBM)

The next Dividend Aristocrat on my list is International Business Machines, one of the world’s most recognized technology companies. Today, IBM is focused on cloud technology, artificial intelligence, and infrastructure. Its computing research lab with MIT, focused on AI, algorithms, and quantum computing, shows how the company is investing in technologies that could shape the next era of enterprise computing.

The company’s net income grew nearly 76% in 2025, and from that, IBM pays a forward annual dividend of $6.76, translating to a yield of around 3%. The company has increased its dividend for 31 consecutive years and has a payout ratio of around 56%, which seems like a fair balance between shareholder rewards and company reinvestment.

Wall Street rates IBM stock a “Moderate Buy” based on a consensus of 21 analysts and its mean to high target prices suggest a potential upside of between 31%-62%.

PPG Industries (PPG)

The last Dividend Aristocrat on my list is PPG Industries, a global maker of paints, coatings, and specialty materials used across construction, industrial, transportation, and consumer markets. At ECOAT 26, the premier electrocoating conference for industry leaders, PPG is showcasing new electrocoat technologies and digital tools to help automotive and industrial customers cut costs, improve efficiency, and reduce environmental impact.

PPG’s annual net income was up approximately 41% last year. As well as being a Dividend Aristocrat, PPG is also a Dividend King, having raised its dividends for 54 straight years. Currently, the company pays $2.84 per share, translating to a yield of around 2.7%. That is pretty impressive, since it has the lowest dividend payout ratio on this list at 36%, yet still offers a decent yield.

With that, a consensus among 23 analysts rates PPG stock a “Moderate Buy”, with a potential upside of between 10% and 21% based on its mean to high target prices.

Final thoughts

These three dividend powerhouses offer a mix of consistency, innovation, and shareholder returns. For income-focused investors, the appeal is not just the dividends they provide today. Rather, it is the combination of payout history, balanced payout ratios, and businesses that are still adapting for the future.

Still, it’s important to remember that markets can move in unexpected ways. So, always keep an eye out for any new developments that can change a company’s future trajectory.

On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com