Not every dividend stock needs to be exciting to be useful.
For dividend-growth investors, sometimes the goal is not to chase the fastest-growing name. It is to find companies that can keep paying, keep growing their dividends, and hold up better when the broader market gets shaky.
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That is where Dividend Aristocrats can be worth a closer look – these are S&P 500 companies that have raised their dividends for at least 25 consecutive years, a record that showsthey can continue rewarding shareholders across different market cycles.
So for this list, I screened for Dividend Aristocrats with a low 60-month beta, strong analyst ratings, and broad analyst coverage. The result was four companies that may appeal to investors seeking income, consistency, and lower volatility.
How I came up with these stocks
Using Barchart’s Stock Screener, I selected the following filters to get my list:
60-Month Beta: 0.00-1.00. This metric measures how much a stock has moved relative to the market over the past five years. A beta below 1 filters for stocks that have been less volatile than the broader market.
Current Analyst Rating: 4.5-5. This filter targets “Strong Buy” stocks and narrows the list to some of the highest-rated names.
Number of Analysts: 12 or more. More coverage means a stronger rating consensus.
I ran the screen and got four companies, then arranged the list from lowest to highest beta. I’ll cover the top three, and we can call the fourth a weekend bonus.
Let’s start with the first Dividend Aristocrat:
Coca-Cola Company (KO)
Coca-Cola is one of the largest beverage companies worldwide, with a global footprint in over 200 countries. Aside from Coke, it offers a wide range of drinks, including Fanta, Minute Maid, and Sprite. Sprite recently returned as the NBA’s Official Global Soft Drink Partner under a new multiyear global partnership.
And for investors? It’s all about the income, and lots of it.
Coca-Cola has raised its dividend for 64 consecutive years, which also makes it a Dividend King. At the time of publication, it pays a forward annual dividend of $2.12, translating to a yield of around 2.75%
Investors will sleep well at night knowing that Coca-Cola’s 60-month beta of just 0.35 will shield them from volatility – actually, KO stock has the lowest beta on the list. Wall Street is also bullish, with the stock receiving a “Strong Buy” rating from a consensus of 23 analysts. Meanwhile, its mean-to-high target prices suggest there’s between 14% and 20% potential upside in the stock over the next year.
Cardinal Health (CAH)
The next Dividend Aristocrat on my list is Cardinal Health, a diversified healthcare company known for distributing pharmaceuticals and medical products to healthcare providers and other medical institutions. It also supports nuclear medicine by expanding the production of actinium-225, an alpha-emitting radionuclide used in targeted cancer therapies.
The company pays $2.04 per share, translating to a yield of just over 1%. It has also raised its dividends for nearly 40 consecutive years.
It trades with a 60-month beta of 0.52 and has a “Strong Buy” rating from 17 analysts. Finally, the mean-to-high target prices suggest between 23% and 36% potential upside.
Walmart Inc (WMT)
Next on my list is Walmart, the largest retailer in the U.S., with over 4,500 physical stores and a wide selection of groceries, household essentials, pharmacy items, electronics, apparel, and general merchandise. It has become a one-stop shop for everyday needs, supported by both its stores and online platform.
Like Coca-Cola, Walmart is a Dividend King with 53 years of consecutive dividend increases. Today, it pays $0.99 yearly, translating to a yield of around 0.8%
Meanwhile, a consensus among 38 analysts rates WMT stock a “Strong Buy”, with between 20% and 32% upside potential should it reach its mean-to-high target prices. It also has a 60-month beta of 0.59.
Linde Plc (LIN)
Now, for my weekend bonus pick, we have Linde Plc, a global industrial gases and engineering company. Its products support a wide range of industries, making its business a major behind-the-scenes player across the global economy.
Linde raised its dividends for 33 straight years, and today it pays $6.40 per share, which translates to a yield of around 1.3%
Linde trades at a beta of 0.73, and Wall Street is bullish on it, with 24 analysts rating the stock a “Strong Buy”. Meanwhile, its mean-to-high target prices suggest between 8% and 18% upside.
These four Dividend Aristocrats, including two Dividend Kings, may appeal to investors looking for long-term income.
These companies may not offer the highest yields or the biggest upside, but they do bring decades of dividend consistency and relative price stability. For income-focused investors, that track record highlights their ability to keep rewarding shareholders across different market conditions.
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. This article was originally published on Barchart.com
