coins, cubes and a business card with the inscription – Dividend Aristocrat by SkazovD via Shutterstock
In uncertain times, dividend income is more than just a strategy; it helps you sleep better at night. The key is knowing which ones to choose and when to buy. In terms of which dividend stocks to buy, I like companies with a long history of increasing their dividends, like the Dividend Aristocrats.
Dividend Aristocrats are S&P 500 listed companies who have increased their dividends for at least each of the last 25 years.
When it comes to answering the question, “When do I buy?” it’s been said that time in the market beats timing the market over the long haul, as buying at the wrong time can lead to eroding returns.
So, with that out of the way, I thought about looking for some quality Dividend Aristocrats that are positioning themselves for a breakout in Q3’25.
Using Barchart’s Stock Screener, I selected the following filters to get my results:
Number of Analysts: At least 12 analysts. A high number of analysts reflects a better rating consensus.
Current Analyst Rating: Moderate to Strong Buy.
Overall Buy/Sell/Hold Signal: Buy. It filters which stocks have a buy signal.
Overall Opinion Direction: Average to Top 1%. It indicates that the signal direction is getting stronger.
Overall Opinion Strength: Average – Top 1%. It is a long-term measurement of strength. Stronger strength means less volatility, which is what we’re looking for.
Watchlists: Dividend Aristocrats.
I ran these filters and got 6 Dividend Aristocrats:
Of course, we want to find the Dividend Aristocrats that are moving up the most, so I sorted the results based on the overall opinion strength.
Let’s kick off this list, starting with number one:
Cardinal Health is a drug distributor, healthcare services, and products company. The company specializes in providing customized solutions for various health needs in over 30 countries, including more than 90% of U.S. hospitals. Cardinal Health operates under two primary segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution.
The company’s most recent financials reported sales of $730 million, up 98% from the previous year. Its net income also increased 93.9% year-over-year to $508 million.
Cardinal Health is a Dividend Aristocrat that has increased its dividends for 29 consecutive years. It pays a forward annual dividend of $2.04 per share, which translates to approximately 1.23% yield. That said, 14 analysts rate the CAH a strong buy.
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Barchart Opinion suggests that CAH is an overall 100% buy, with the highest current strength rating of “Top 1%,” and its current direction is strongest. Together, investors have an opportunity to capitalize on a potentially bullish run.
The second Dividend Aristocrat on the list is International Business Machines. IBM is a technology company that specializes in computer hardware, software, and IT consulting. Recently, the company expanded its presence in cloud, AI technology, and services to better serve its clients while entering a new vertical. As a multinational, IBM has a presence in over 130 countries and operates in five segments: software, consulting, infrastructure, financing, and others.
The company’s most recent financials reported $14.5 billion in sales for Q1’25, up 1% from the same quarter last year. Net income was also up 33% year-over-year, totaling $1.1 billion.
International Business Machines is a Dividend Aristocrat that has increased its dividends for 30 consecutive years. It pays a forward annual dividend of $6.72 per share, translating to a yield of approximately 2.30%. Finally, a consensus among 20 analysts rates IBM a moderate buy.
Barchart Opinion indicates that IBM is an overall “100% buy,” with a current strength rating of maximum, and its current direction at its strongest levels. This is an exceptionally bullish signal, showing peak momentum.
The last Dividend Aristocrat in this list is Abbott Laboratories – a company that I covered several times, so I’ll keep the introductions brief. Abbott is a diversified healthcare provider that caters to a range of diseases and nutritional needs. As a global company, it has a presence in over 160 countries and more than 300 subsidiaries worldwide.
Abbott Laboratories operates in five business segments: Established Pharmaceuticals, Diagnostics, Nutritional Products, Medical Devices, and Specialty Products.
The company’s most recent financials reported that sales were approximately $10.4 billion, up 4% from the same period last year. Its net income also increased 8.2% year-over-year, to $1.33 billion.
Abbott Laboratories has increased its dividends for 53 consecutive years and pays a current forward annual dividend of $2.36, translating to a yield of approximately 1.77%. That said, 26 analysts rate the stock an average “Strong Buy.”
Barchart Opinion indicates that ABT stock has an overall average 88% buy rating, with an “Current Strength” and “Direction” being average. I’ve been watching this stock, and I’ve noticed that profit-taking has been occurring. Therefore, it may be a good opportunity to capitalize on the next bull run.
These three Dividend Aristocrats are quality names and reasonable choices for any income portfolio. And just because technical opinions say it’s a buy doesn’t mean you should. But if you believe in the technicals, a bull run may be around the corner.
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
