Investors looking for defensive companies paying big dividends are drawn to the Dividend Aristocrats and with good reason.
The 66 companies that made the cut for the 2024 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight.
They must be a member of the S&P 500.
Why do we cover the Dividend Aristocrats?
Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.
For good reason, investors who are searching for defensive businesses that offer high dividends are drawn to the Dividend Aristocrats. For 25 years in a row, the 66 businesses that made the cut for the 2024 SandP 500 Dividend Aristocrats list have raised their dividends rather than simply held steady. The criteria are even more stringent, though, as being on the aristocrat’s list also requires having the following qualities.
Businesses must have a quarterly rebalancing value of at least $3 billion.
Every quarterly rebalancing date requires that the average daily volume of transactions for each trailing three-month period be at least $5 million.
Members of the S&P 500 are required.
This is 247 Wall Street. We constantly stress to our readers the importance of complete return. Your overall success as an investor can be greatly increased by using this strategy. The sum of dividends and stock value growth is known as the total return.
For instance, if you purchase a stock at $20 that yields a 3% dividend and rises to $22 over the course of a year, your total return will be 13 percent. Specifically, 3% for dividend payments and 10% for the rise in stock price.
The Dividend Aristocrats list was filtered to find companies with the highest potential total return for 2025, and four of the group’s highest-yielding companies are among our top picks for the coming year.
The Dividend Aristocrats are covered, but why?
Growth and income investors want to purchase and hold in stock portfolios for the long term S&P 500 companies that have paid and increased their dividends for 25 years or more. Since these stocks are primarily conservative, they should fare far better than erratic tech names in the event of a sharp market correction.
Realty Profits.
For income and growth investors seeking a more secure contrarian investment for 2025 that yields a staggering 6.02% dividend, this is the perfect stock. Realty Income Corporation. (NYSE: O) is a S&P 500 business that offers consistent monthly income to investors.
The company’s cash flow from more than 15,540 real estate properties—including those purchased in the January 2024 Spirit merger—owned under long-term lease agreements with commercial tenants supports its monthly dividends. The company is structured as a REIT.
Over the course of its 55-year history, the company has announced 644 consecutive monthly dividends on common stock, and since Realty Income went public in 1994, the dividend has increased 123 times. It ranks highly among the S&P 500 Dividend Aristocrats index’s real estate holdings.
Franklin Resources.
This mutual fund giant offers a safe and secure dividend of 6.20%. The Franklin Resources Inc. (NYSE: BEN) is one of the most well-known money managers worldwide.
The Franklin, Templeton, and Mutual Series brands are used by the company to market mutual funds and institutional separate accounts. An advantage given the aging U.S. market is that occasionally half of its sales come from outside the country. A. the market.
These brands are used by Franklin Resources to market its goods and services.
Franklin.
Templeton.
Series Franklin Mutual.
Bissett Franklin.
Fiduciary Trust.
Hey Darby.
balanced management of equity.
K2. .
Libertyshares.
Edinburgh Partners.
For the business, the bull market of 2023–2024 has been a reliable tailwind. Although baby boomer withdrawals might be a worry, 2025 appears to have a very promising future.
Amcor.
Because it creates products that are always in demand and offers a substantial dividend of 5–40 percent, this Dividend Aristocrat makes sense. Packaging products are produced and sold by Amcor PLC (NYSE: AMCR) in North America, Europe, Africa, Latin America, and the Asia Pacific area. The business is divided into two sections.
The Flexibles segment supplies flexible and film packaging products for the fresh produce, snack food, medical and pharmaceutical, food and beverage, and personal care sectors, among others.
These rigid containers are available for a variety of food and drink items from the Rigid Packaging segment.
soft drinks with carbonation.
water.
drinks.
Sports beverages.
Drinks made with milk.
souls.
Ale.
condiments.
dressings.
spreads.
products for personal hygiene.
Plastic caps for a range of uses.
Chevron.
For investors who want to get into the energy business, this integrated behemoth is a safer choice. Its dividend is a sweet 4 percent. Chevron Corporation. Through its subsidiaries, (NYSE: CVX) operates globally in integrated energy and chemical operations. There are two divisions within the company.
The following activities are carried out by the Upstream segment.
Crude oil and natural gas exploration, development, production, and transportation.
Liquefied natural gas processing, liquefaction, transportation, and regasification.
Pipelines are used to transport and store crude oil.
running a gas-to-liquids facility and marketing natural gas.
The downstream section does the following.
producing petroleum products by refining crude oil.
promotion of lubricants, refined goods, and crude oil.
producing and distributing renewable energy sources.
using pipelines, rail cars, motor vehicles, and marine vessels to transport crude oil and refined products.
Production and distribution of industrial plastics, fuel and lubricant additives, and commodity petrochemicals.
Downstream also includes real estate, technology, insurance, debt financing, and cash management.
Take advantage of five blue-chip dividend stocks with yields of at least 6% as you begin the new year.
