Published on November 25th, 2024 by Bob Ciura
If you’re a long-term investor, honing in on high-quality dividend stocks is a savvy strategy. Among the cream of the crop are the Dividend Aristocrats, which are some of the top dividend stocks you can buy and hold for the long haul.
The track record of the Dividend Aristocrats is impressive, often showing performance that beats the market, especially when you factor in risk-adjusted returns.
At the moment, there are 66 stocks that hold the prestigious title of Dividend Aristocrats. You can grab an Excel spreadsheet listing all of them, complete with important metrics like dividend yields and price-to-earnings ratios, by clicking the link provided.
Disclaimer: Sure Dividend isn’t connected with S&P Global in any way. S&P Global owns and maintains the Dividend Aristocrats Index. The info in this piece, along with the downloadable spreadsheet, is based on Sure Dividend’s own research and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and various other sources. It’s intended to help individual investors gain a deeper understanding of this ETF and its index. None of the data in this article or spreadsheet comes directly from S&P Global. For official data, you should consult S&P Global.
So, let’s kick things off with an overview of the Dividend Aristocrats list. From there, we’ll highlight our top 10 hidden gems among the Dividend Aristocrats.
This list consists of 10 lesser-known Dividend Aristocrats, each with market caps under $25 billion, categorizing them as some of the smaller players in the pack.
These 10 stocks tend to fly under the radar, getting less attention in the financial media compared to their bigger counterparts.
### Dividend Aristocrats Overview
To earn the title of Dividend Aristocrat, a company must:
– Be part of the S&P 500
– Increase dividends for at least 25 consecutive years
– Meet certain size and liquidity standards
Dividend Aristocrats are renowned for their quality, underscored by their prolonged history of rising dividends. Such longevity implies a strong, sustainable competitive edge.
However, not every Dividend Aristocrat is a great buy at this very moment. This is where the spreadsheet mentioned in this article really shines. It can swiftly guide you to prime dividend investment opportunities.
The list of 66 Dividend Aristocrats is a treasure trove, offering a comprehensive look at S&P 500 stocks that have hiked dividends for over 25 years and also meet specific size and liquidity benchmarks.
A glance at the sector breakdown of the Dividend Aristocrats Index reveals some insights:
The leading sectors by weight in the Dividend Aristocrats Index are Industrials and Consumer Staples. This demonstrates a tilt towards these sectors, especially when compared to the broader S&P 500.
Together, these two sectors account for over 40% of the index, though they make up less than 20% of the S&P 500.
On the other hand, the Information Technology sector is underrepresented in the Dividend Aristocrats, with only about 3% compared to over 20% in the S&P 500.
The Dividend Aristocrat Index is brimming with stable industry behemoths boasting market caps exceeding $200 billion, such as Coca-Cola (KO), ExxonMobil (XOM), and Johnson & Johnson (JNJ).
Yet, there are smaller Dividend Aristocrats that deserve attention. The following 10 have robust business models, distinct competitive advantages, and the potential for long-term dividend growth.
### Dividend Aristocrat You’ve Never Heard Of: Federal Realty Investment Trust (FRT)
Founded in 1962, Federal Realty is a Real Estate Investment Trust (REIT) that focuses on owning and leasing out real estate properties. It leverages rental income and external funding to expand its portfolio.
Federal Realty released its third-quarter financial results on October 30, 2024, for the period ending September 30, 2024.
The company reported net income available for common shareholders of $0.70 per diluted share, compared to $0.67 from last year. Operating income was $105.8 million, up from $100.1 million in Q3 2023.
Funds from Operations (FFO) available to common shareholders rose to $1.71 per diluted share, up from $1.65 last year.
Click here to download our latest Sure Analysis report on Federal Realty (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: A.O. Smith (AOS)
A.O. Smith stands out as a prominent manufacturer of water heaters, boilers, and water treatment products for both residential and commercial markets.
While two-thirds of its sales come from North America, China makes up most of its international market presence, with only a small portion coming from other regions.
This company has impressively raised its dividends for 30 consecutive years.
A.O. Smith released third-quarter earnings on October 22, revealing $903 million in revenues—a 4% dip from the previous year.
Sales in North America decreased by 1%, and the international segment experienced a larger downturn, influenced by the troubled real estate market in China.
Earnings per share sat at $0.82, reflecting a 9% decline compared to the previous year.
Click here to download our latest Sure Analysis report on A.O. Smith (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Franklin Resources (BEN)
Franklin Resources, a global asset manager, has long been successful in offering investment management and related services such as sales, distribution, and shareholder servicing.
On November 4th, 2024, Franklin Resources reported its fourth-quarter results for the period ending September 30th, 2024.
Total assets under management were $1.679 trillion, marking a $32 billion increase sequentially, thanks to $63.5 billion in net market change, distributions, and other factors, offset partially by net outflows.
For the quarter, the company recorded operating revenue of $2.211 billion, climbing 11% year-over-year. On an adjusted basis, net income totaled $315 million or $0.59 per share.
Click here to download our latest Sure Analysis report on Franklin Resources (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: C.H. Robinson Worldwide (CHRW)
Founded by Charles Henry Robinson in the early 1900s, C.H. Robinson Worldwide is a prominent Fortune 500 provider of various transportation and logistics services.
Their wide-ranging services encompass freight transportation, management, brokerage, and warehousing, including different transportation modes like truckload, air freight, intermodal, and ocean.
On October 30th, 2024, C.H. Robinson reported its third-quarter results for Fiscal Year 2024, showing remarkable financial outcomes.
The company saw a 15.5% surge in gross profits, hitting $723.8 million, and income from operations jumped 58.7% to $180.1 million.
Adjusted operating margin improved by 660 basis points to 24.5%, with adjusted earnings per share growing by 45.5% to $1.28, driven by strategic volume growth and operational enhancements.
Click here to download our latest Sure Analysis report on C.H. Robinson (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Albemarle (ALB)
Albemarle ranks as the largest lithium producer globally and comes second in bromine production. These two products form the bulk of its yearly sales. Albemarle extracts lithium from salt brine deposits in the U.S. and Chile.
The company’s assets in Chile provide a competitively low-cost lithium source, and its operations span nearly 100 countries.
On November 6th, 2024, Albemarle announced third-quarter results for the period ending September 30th, 2024. Although revenue shrank by 39.4% to $1.43 billion, it surpassed estimates by $30 million. Adjusted earnings per share dropped significantly to -$1.55, starkly contrasting $2.74 in the prior year.
The company’s performance was negatively impacted by asset write-downs and declining lithium prices. The Energy Storage division saw revenue plummet by 54.8% to $767.3 million due to volume growth being overshadowed by sharp price drops.
Revenue for the Specialties business decreased by 2.9% as slight volume gains failed to counteract price reductions. Ketjen sales also fell by 6% from last year due to diminished volume.
Click here to download our most recent Sure Analysis report on Albemarle (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Nordson Corporation (NDSN)
Nordson, established in 1954 in Amherst, Ohio, traces its lineage back to the U.S. Automatic Company formed in 1909 by the Nord brothers. Today, it has grown into a global entity with operations in over 35 countries, engineering and manufacturing a wide assortment of dispensing equipment used across industries like electronics and transportation.
On August 14th, 2024, Nordson hiked its dividend by 15% to $0.78 per share, marking 61 years of consecutive increases. A week later, the company released its third-quarter results.
For the quarter that concluded on July 31st, 2024, Nordson brought in $662 million in sales, up 2% year-over-year, largely bolstered by strategic acquisitions, despite a slight organic decrease.
Sales surged by 9.6% in the Industrial Precision Solutions division, while Medical and Fluid Solutions and Advanced Technology Solutions saw declines.
Despite these challenges, Nordson managed to earn $2.41 per share on an adjusted basis, down 6% from the previous year.
Click here to download our latest Sure Analysis report on Nordson (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Expeditors International of Washington (EXPD)
Based in Seattle, Expeditors is a seasoned player in the logistics realm, originating as a single-office ocean forwarder in 1979. Today, it boasts over 250 locations and around 17,500 employees globally.
Their comprehensive suite of services includes air and ocean freight consolidation, customs brokerage, and warehouse distribution among others.
For the third quarter of Fiscal Year 2024, Expeditors announced a robust performance. Earnings per share shot up 41% to $1.63, with net earnings growing 34% to $230 million compared to the previous year.
Operating income expanded by 40% to $302 million, fueled by a 37% revenue increase to $3 billion. Significant growth in airfreight tonnage and ocean container volumes attests to the company’s proactive freight handling.
Click here to download our latest Sure Analysis report on Expeditors (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: West Pharmaceutical Services (WST)
Manufacturing specialized packaging and components, West Pharmaceutical Services plays a crucial role in the pharma distribution chain with products like Zenith Crystal and SmartDose.
However, their recent results painted a different picture; for the second quarter, sales tumbled by 7% compared to the previous year.
Despite the challenges, profits still stood at $1.52 per share, albeit marking a 28% year-on-year decline.
Click here to download our latest Sure Analysis report on West Pharmaceutical Services (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Atmos Energy (ATO)
With roots tracing back to 1906 in Texas, Atmos Energy has evolved significantly through strategic mergers and organic growth. Today, it operates in eight states, reaching over 3 million customers and aims to generate about $5 billion in revenue this year.
The company proudly upholds a 41-year legacy of increasing dividends, earning its spot among elite dividend payers.
In its fourth-quarter and full-year earnings announcement on November 6, 2024, Atmos showed solid performance, aligning with market expectations. The annual net income crossed the billion-dollar mark, with the fourth-quarter yield hitting $134 million.
Distribution earnings for the quarter were up compared to last year, with full-year performance showing marked improvements across its distribution, pipeline, and storage segments.
Click here to download our latest Sure Analysis report on Atmos Energy (preview of page 1 of 3 shown below).
### Dividend Aristocrat You’ve Never Heard Of: Cincinnati Financial (CINF)
Founded in 1950, Cincinnati Financial offers a variety of insurance products including business, home, and auto insurance, alongside financial ventures like life insurance and annuities.
The company earns through both underwriting insurance policies and investing the premiums.
On October 24th, 2024, Cincinnati Financial showcased strides in its third-quarter performance for Fiscal Year 2024. This included net income skyrocketing to $820 million, or $5.20 per share, showcasing a stark contrast to a net loss in the previous year. This was largely due to large gains in investment values.
Boosted by these investment results, the company’s book value per share increased substantially, with broader value creation also exceeding previous records.
Click here to download our latest Sure Analysis report on Cincinnati Financial (preview of page 1 of 3 shown below).
### Additional Reading
While the Dividend Aristocrats remain tipped as top contenders for long-term dividend growth investments, they aren’t the only road to finding stocks that consistently elevate their dividend payouts.
For more dividend growth stock insights, be sure to check out our compiled reading list for fresh investing ideas.
Thanks for checking out this article. Feel free to reach out with any feedback, corrections, or questions to [email protected].
