Dividend Aristocrats offer investors dividend increases every year. These companies have solid reputations and business practices that have enabled them to raise dividend payouts for 25 years or more.
However, they’re not all good all the time. Some Dividend Aristocrats may be in a freefall—or worse, on their way off of the list altogether.
Smart investors don’t stick with one factor when picking their stocks. It might be best to consider expert opinions for income investments, so we’ll be looking at the top Aristocrats based on analyst ratings.
How I Came Up With The Highest-Rated Dividend Aristocrats
One of Barchart's best aspects is its user-friendly and interoperable features. For instance, I used Barchart’s Watchlist and Free Screener tool to identify the top three highest-rated Dividend Aristocrats. Here’s how I did it.
First, I pulled up my pre-prepared Dividend Aristocrat Watchlist. From right there on the page, clicked on Screen to get to the Screener options.
Once on the screening page, I can select from dozens of search filters to narrow my list to today's highest-rated Dividend Aristocrats. For this analysis, I used two filters.
First is, of course, Current Analyst Ratings. I set the search for companies with 4.5 to 5 scores or only those with strong buy recommendations.
Second, I added the Number Of Analysts to my search. The logic is that some companies may register as a strong buy with only a few analysts covering them—not a good way to utilize consensus data. So, I set the number to Very High, or 16 or more analyst scores, for a better view of the overall market sentiment about the stock.
By the way, I can add or remove other watchlists from the screening process. For now, though, we’ll stick with Dividend Aristocrats.
And thus, we have our list.
Remember I mentioned interoperability earlier? As you can see here, all the results from any screen you run with your specified filters can be saved as their own separate watchlist. If I were so inclined, I could click on “Save as Watchlist” and save it as a separate list.
In any case, let’s get to the main event: here are the highest-rated Dividend Aristocrats today, arranged from lowest to highest analyst rating scores.
Chevron Corp (CVX)
Chevron, like most others on this list, is a known brand worldwide. The company primarily operates as an oil and gas manufacturer and distributor with sites in North America, Eurasia, and South America.
Chevron is the world's third-largest oil and gas company based on market cap, behind Exxon Mobil and the trillion-dollar company Saudi Aramco.
While the company manufactures lubricants, fuel, and other petroleum products, it has also taken steps towards greener energy sources. As of today, Chevron’s New Energy segment works to deliver hydrogen and renewable fuel and promote eco-friendly strategies.
Chevron’s FY’23 results were a bit disappointing. Sales and other operating revenues came in at $196.9 billion, lower than FY’22’s $235.7 billion. As a result, EPS followed down to $11.36 from $18.28 last year.
Still, Wall Street is optimistic about the stock, giving it a strong buy recommendation with an average score of 4.52 based on 21 analysts. The company has a $6.52 annual forward dividend rate, translating to a 4.02% yield based on current prices, and has raised dividends for 37 consecutive years.
Emerson Electric Company (EMR)
Frequent readers won’t be surprised that Emerson Electric is again included in a top Dividend Aristocrat list.
Emerson operates as a technology and software solutions company, providing services to other companies in various industries, including Food and Beverage, Automotive, Mining, Healthcare, Oil and Gas, and more.
The company’s two main business groups are Intelligent Devices and Software and Control. Emerson Electric is a well-regarded Dividend Aristocrat and King and has consecutively increased dividend payouts since 1957.
Emerson started 2024 with a bang, registering a 22% increase in Q1 net sales YOY. Meanwhile, adjusted EPS came in 56% higher, and operating and free cash flow increased by 47% and 51%, respectively.
As such, analysts give Emerson Electric a 4.55 average score from 20 analysts, resulting in a strong buy recommendation. The company’s forward dividend rate is $2.10 per share this year, reflecting a 1.93% yield.
S&P Global (SPGI)
S&P Global retains its position as the highest-rated Dividend Aristocrat from last month. The company provides financial intelligence solutions and analytics. S&P Global operates several intelligence and analytics business lines through various subsidiaries that cover credit ratings, commodities, and indices.
S&P Global also operates an index that tracks Dividend Aristocrats, so it’s fitting that it tops this list.
The company has raised dividends for at least 51 years and has a forward dividend rate of $3.64. This reflects a paltry 0.87% yield. That said, its 5-year dividend has grown 80%.
As for financials, the company reported 12% revenue growth in FY'23, although diluted EPS came in 19% lower year over year. Fret not, though, as analysts see a solid year ahead for S&P Global; the stock has a 4.84 rating based on 19 analyst scores.
S&P Globals Q1FY’24 results are due on April 25, so stay tuned.
Final Thoughts
It’s hard to go wrong with Dividend Aristocrats if you’re looking for solid, reliable income for many years to come. However, you might want to consider what the experts say about these stocks, as not all are currently buy-rated. Utilize the tools you have at your disposal, like Barchart’s Screeners and Watchlists, and give yourself the best chance to win.
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. For more information please view the Barchart Disclosure Policy here.
