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3 Dividend Aristocrats To Outperform the Market in 2025The S&P 500 has historically returned about 10% since 1928. That means if you’d invested in an S&P 500 index fund, you can expect it to double your money in a little over seven years. That's not a bad case for retirement portfolios. Buying the right Dividend Aristocrat will work wonders if you want to replicate that 10% return and earn dividends. These stocks have 25-plus years of dividend increases, meaning you get more income over the long run. The longer your investment horizon is, the better it is for you. So, let’s take a look at three Dividend Aristocrats that have the potential to outperform the market. How I Came Up With The Following StocksTo get the top three, I first went to Barchart to pull up my Aristocrats watchlist. Then, I cut the list down through the Stock Screener feature using these filters:
Last, I added one more criterion that isn’t (yet) available on the Screener but can easily be checked on Barchart.com.
After running the screen, three companies came up: Walmart (WMT)YTD Change: +53.05% 2-Year Change: +82.06% 5-Year Change: +100.67% High Price Target: $98 (+21.85%) “We're [also] seeing higher engagement across income cohorts,” said CFO John David Rainey in the Q2 FY 2025 earnings call, “with upper-income households continuing to account for the majority of gains, even while we grow sales and share among middle- and lower-income households.” Despite attracting high-earning shoppers, the company remains mindful of its prices, lowering them as much as possible without sacrificing quality or affecting its bottom line. As CEO C. Douglas McMillon says, “Customers from all income levels are looking for value, and we have it.” Meanwhile, WMT maintains its commitment to shareholders by paying an 84-cent annual dividend per share, which translates to a 1.04% yield. S&P Global Inc (SPGI)YTD Change: +16.82% 2-Year Change: +63.47% 5-Year Change: +103.45% High Price Target: $610 (+18.54%) So, is it any wonder that people think of S&P Global as one of the best investments for returns and dividends? Speaking of dividends… well, there isn’t much to say about them. SPGI has a notoriously low yield; 2024’s dividends total $3.64 a share, or a paltry 0.71% yield. However, dividends have increased by 80% over the last five years, so at least it offers growth in yield and returns. Emerson Electric Company (EMR)YTD Change: +12.64% 2-Year Change: +45.13% 5-Year Change: +64.78% High Price Target: $140 (+27.70%) However, it does have the highest potential return at 27%. At the same time, EMR offers the highest yield on this list at 1.91%, based on its $2.10 annual dividend. Final ThoughtsYes, actively trading can be exciting, but for market veterans like me, relaxing and making my money work for me is a much more preferable option. So, take heed of these performing Dividend Aristocrats and see if they fit your investment needs. If you like what you see, add them to your portfolio, or feel free to browse my other Barchart articles for more dividend stock tips. More Stock Market News from Barchart
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. |
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