It's tough to beat the "Dividend Aristocrats" for bankable dividend stocks. And investors now have three more in the S&P 500 to choose from — but can find even higher yields.
Three stocks, including C.H. Robinson Worldwide, Nordson and J.M. Smucker, will join the storied S&P 500 Dividend Aristocrats on Feb. 1, says Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The Dividend Aristocrats is a rarefied list of the S&P 500 stocks that have boosted their dividends for at least 25 years. Several of the members, including 3M, Coca-Cola, Colgate-Palmolive, Dover, Emerson Electric, Genuine Parts, Johnson & Johnson and Procter & Gamble have raised their dividends for at least 60 straight years.
Fans of dividends applaud the Aristocrats' stability amid a turbulent stock market.
"Strategic exposure to dividend-paying health care, energy and consumer staples will fare far better for what's to come than expensive, overvalued companies," said Austin Graff, CFA, Co-CIO and Portfolio Manager of the Low Volatility Equity Income ETF.
New Dividend Aristocrats
The newest Dividend Aristocrats won't set the world on fire for their yields. But their habit of raising the payments is still impressive.
J.M. Smucker is the highest yielding of the bunch: 2.7%. The maker of peanut butter and jelly has bumped up its dividend for the past 25 years straight, Silverbatt says. The latest boost came in July of 2022. And it has a habit of increasing the dividend in July, annually.
Nordson, a maker of chemical processing gear, is the newest Dividend Aristocrat with the longest track record of hiking its dividends. The stock only yields 1.1%, but the company has diligently boosted payouts for 42 years. The last hike came in August 2022, following its pattern.
Also new to the Aristrocrats is shipping company C.H. Robinson Worldwide. It's bumped up its dividend for 25 years. That gets its dividend up to 2.2%. The last hike came in November of last year, making it eligible for the Aristrocrats.
Which S&P 500 Dividend Aristocrats Pay The Most?
Big dividends aren't a prerequisite to join the Dividend Aristocrats. Persistence and growth are. But you can still find large yields among them if you look.
For now, the largest yielding Aristocrat is apparel maker VF. It yields a whopping 6.8%, making it the highest yielding stock among these committed dividend payers. And investors can rest knowing the company has a solid track record raising dividends. VF has increased is cash payments annually for 50 years.
Another big Aristocrat yielder is drugstore chain Walgreens Boots Alliance. Following 47 years of increasing its dividend, it's now yielding 5.3%.
Highest Yielding Dividend Aristocrats
Those paying highest yields, with newest index additions shown for comparison
| Company | TICKER | SECTOR | Years of dividend increases | Dividend yield |
|---|---|---|---|---|
| VF | Consumer Discretionary | 50 | 6.8% | |
| Walgreens Boots Alliance | Consumer Staples | 47 | 5.3 | |
| 3M Company | Industrials | 60 | 5.3 | |
| International Business Machines | Information Technology | 27 | 4.7 | |
| Realty Income | Real Estate | 28 | 4.4 | |
| Amcor | Materials | 39 | 4.2 | |
| T. Rowe Price Group | Financials | 36 | 4.1 | |
| Essex Property Trust | Real Estate | 28 | 4.1 | |
| Franklin Resources | Financials | 41 | 4.0 | |
| AbbVie | Health Care | 50 | 4.0 | |
| J.M. Smucker * | Consumer Staples | 25 | 2.7 | |
| C.H. Robinson Worldwide* | Industrials | 25 | 2.3 | |
| Nordson* | Industrials | 42 | 1.1 |
Sources: S&P Global Market Intelligence, IBD, * — new index additions
Follow Matt Krantz on Twitter @mattkrantz
