coins, cubes and a business card with the inscription – Dividend Aristocrat by SkazovD via Shutterstock
Income investors have long trusted dividend stocks for their stable payouts. However, the growing popularity of high-risk, high-income alternatives causes some investors to move away from these reliable stocks, but not me.
Investors who are obsessed with stability, like myself, find the Dividend Aristocrats to be an ideal choice. These are companies listed in the S&P 500 that have increased their dividends for at least 25 consecutive years, having dealt with even the strongest market headwinds.
Today, we’re looking at three Dividend Aristocrats that may have flown under the radar but report massive earnings and momentum that can extend well beyond 2025.
Using Barchart’s Stock Screener, I selected the following filters to get my results:
EPS Basic Growth Last Year (%): At least 1%. I’m looking for companies that have achieved high profits compared to their performance in the previous year. More profit equates to more room to increase dividends.
Cash Flow Growth Last Year (%): At least 10%. An increase in cash flow reflects the ability to pay liabilities and, most importantly, dividends.
Overall Buy/Sell/Hold Signal: Buy.
Number of Analysts: At least 12. A high number of analysts shows greater confidence of the signal.
Current Analyst Rating: Moderate to Strong Buy.
Watchlist: Dividend Aristocrats
I ran these filters and got 6 company hits:
Then I sorted it based on EPS Basic Growth % to get the top 3 companies that made the biggest profits, starting with number one:
Cardinal Health is a company I feature often, so I’ll keep the introduction brief. Cardinal Health is a major player in the medical field, providing customized products and services in over 30 countries, including more than 90% of U.S. hospitals.
The company’s 2024 annual report reported sales of approximately $227 billion,up 10.7% from the same quarter, last year. Net income increased 157.7%year-over-year to $853 million. EPS came in at $3.48up 174% from 2023.
Cardinal Health is a Dividend Aristocrat and has increased its dividends for 29 consecutive years. Today, it pays a forward annual dividend of $2.04, translating to a yield of roughly 1.24%.
Barchart Opinion reports a 100% Buy overall average for CAH, with 14 analysts rating the stock a strong buy.
The second Dividend Aristocrat on this list is Abbott Laboratories, a company I’ve also written about several times. Abbott manufactures health-related products and provides healthcare services to over 160 countries, with more than 300 subsidiaries worldwide.
The company’s 2024 annual report reported sales of ~$42 billion,up 4.6% from the previous year. Net income increased 134.2%to $13.4 billion. EPS was $7.67, also up 133.8% from 2023.
Abbott Laboratories has increased its dividends for 53 consecutive years and pays a current forward annual dividend of $2.36, translating to a yield of approximately 1.73%.
Barchart Opinion shows a 100% Buy overall average for ABT, with 26 analysts rating the stock a strong buy.
The last Dividend Aristocrat that’s often overlooked is Ecolab Inc., a company specializing in water, hygiene, and energy technologies. Together with its subsidiaries, it provides services to various industries, including animal and plant production, food and beverage, mining, and power generation. The company has a presence in 40 industries across more than 170 countries.
According to the company’s 2024 annual report, sales came in at ~$15.7 billion, up 3%from the previous year. Net income increased 54%to $2.1 billion. And EPS was $7.43, also up 54.1% from 2023.
Ecolab Inc. is a Dividend Aristocrat that has increased its dividends for 33 consecutive years and pays a current forward annual dividend of $2.60, translating to a yield of approximately 0.95%.
Barchart Opinion reports a 100% Buy overall average for ECL, with 24 analysts rating the stock a moderate buy.
So, there you have it, the three overlooked Dividend Aristocrats with a strong technicals and financials, making them an attractive addition to your portfolio. Although current ratings and previous performance do not guarantee a win, they are an excellent indicator of stocks that can benefit the most from a bull run.
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
