The 3 Dividend Aristocrats Wall Street Calls a ‘Strong Buy’ With Up to 46% Upside

A company that can raise its payout for decades has usually done more than just survive; it has found a way to stay relevant and reward shareholders through different market cycles. And if you think of how many world-changing events have come and gone over the two and a half decades, you’d realize that paying dividends consistently is already an impressive feat. 

That is why Dividend Aristocrats remain a favorite group for income-focused investors. These are S&P 500 companies that have increased their dividends for at least 25 consecutive years. 

However, there's quite a few of them, so I usually have to come up with a few ways to find the best ones- worth buying today.

My favorite so far? Outsource all the work to the experts. And by experts, I mean Wall Street's best and brightest financial analysts. 

So, today, let’s look at the highest-rated Dividend Aristocrats to see if they look good in your long-term portfolios. 

How I came up with the following stocks

Using Barchart’s Stock Screener, I selected the following filters to get my list:

• Current Analyst Rating: 4.5 - 5. Stocks that are “Strong Buy” are the best of the best according to Wall Street.
• Dividend Investing Idea: Dividend Aristocrats.

I ran the screen and got 6 results. I will cover the three highest-rated companies.

Let’s start with the first Dividend Aristocrat:

Cardinal Health (CAH)

Cardinal Health is a healthcare services company that helps keep the medical supply chain moving. It distributes pharmaceuticals and medical products to different health institutions, ensuring that supplies reach the facilities and patients that need them. Its logistics role also extends to care-at-home through its Velocare solution, which helps scale hospital-at-home programs. 

Cardinal Health increased its dividends for more than 25 consecutive years, and today pays a forward annual dividend of $2.04, translating to a yield of approximately 1%.

A consensus among 16 analysts rates it a “Strong Buy”, with a score of 4.75 out of 5, making it the highest-rated stock on this list. Also, the mean to high target prices suggest there's between 22% and 37% potential upside in CAH stock over the next year. 

Walmart Inc (WMT)

The second Dividend Aristocrat worth looking at is Walmart, a company I recently covered, so I’ll keep the introduction brief. Walmart is the world’s largest retailer with millions of customers thanks to its stores and online platforms. It is also growing its retail media business through Sam’s Club’s Member Access Platform, which helps brands reach members across different shopping channels. 

Walmart has increased its dividends for 52 consecutive years, making it a Dividend Aristocrat and King. It pays $0.99 per share per year, translating to around a 0.75% yield. That’s not the highest yields around, but consistency and a strong underlying business more than makes up for it. 

A consensus among 38 analysts rates the stock a “Strong Buy”, with an average score of 4.66 out of 5. And at its current trading price, there's as much as 15% potential upside in the stock. 

S&P Global Inc (SPGI)

The last Dividend Aristocrat on my list is S&P Global Inc., a financial data and analytics company known for its credit ratings, market indexes, and research tools. It also recently partnered with the United Nations Sustainable Stock Exchanges through S&P Global Energy to support energy transition efforts in capital markets. 

Like Walmart, S&P Global is a Dividend King that's raised its dividends for more than 50 consecutive years. Today, it pays $3.88 per share, yielding approximately 0.88%. 

Further, a consensus among 26 analysts rates the stock a “Strong Buy”, with a score of 4.65 out of 5. Based on its current price, the low-to-high target range suggests potential upside of between 10% and 46%. 

Like Walmart, S&P Global isn’t a high-yield pick. However, its enduring market position, durable moat, and consistent long-term growth make it an attractive choice for capital appreciation, and dividend growth. 

Final thoughts

The track record of these three Dividend Aristocrats proves that they are long-term wealth builders and perfect additions for your retirement portfolios. And with Wall Street’s glowing reviews, the entry opportunity looks even better. 

Now, to be fair, these stocks do not guarantee stability. Nothing does in the market. So I find it better to keep your eyes peeled for any new company and market developments. Remember, a good investor stays on top of their positions.