Future Dividend Aristocrats Offer Reliable Income and Potential Returns of Up to 6.5%
In the realm of investing, the pursuit of steady income streams is a common goal for many. One such coveted title is that of a Dividend Aristocrat, a group of S&P 500 companies that have increased their dividends for at least 25 consecutive years. While the current roster of Dividend Aristocrats is impressive, the question on many investors' minds is: Who might join the ranks in the future?
Let's delve into some potential candidates for the 2025 Dividend Aristocrat list, based on current data and typical criteria.
Contenders for the Aristocrat Crown
Companies with long dividend growth streaks and safe dividend payments are strong indicators for maintaining or joining the aristocrats list in the future. Typical sectors for Dividend Aristocrats include consumer staples, industrials, healthcare, and utilities, not tech-heavy sectors.
High dividend yields combined with stable payment history can signal future inclusion candidates, especially among companies with 20+ years of consecutive increases.
Consumer Staples
McCormick & Company (MKC) boasts a dividend yield of 2.5% and a dividend growth streak of 38 years. With a strong brand portfolio and steady growth, McCormick could be a strong contender for the Dividend Aristocrat list.
Clorox Co. (CLX) is another consumer staples company with a 47-year dividend growth streak and an estimated dividend yield of around 3%. With strong product positions and a history of dividend growth, Clorox could also be a potential Aristocrat.
Healthcare
Johnson & Johnson (JNJ) holds the longest dividend growth streak among all companies, at 63 years. With an estimated dividend yield of around 2.9%, Johnson & Johnson has increased its dividend by 4.8% in 2025. Its position as a healthcare titan makes it a strong contender for the Dividend Aristocrat list.
Financial Services
Franklin Resources (BEN) and T. Rowe Price Group (TROW) are financial services companies with high yields, but their dividend histories are not explicitly listed. A thorough review of their dividend histories is necessary to determine their potential as Dividend Aristocrats.
REITs
Realty Income Corp (O) is often viewed as a Dividend Aristocrat or close candidate, with a very long dividend increase history (over 29 years) and a high yield of 5.57%. Known as “The Monthly Dividend Company,” Realty Income is a strong contender for the Dividend Aristocrat list.
The Road to Aristocracy
While the aforementioned companies show promise, it's important to remember that the aristocrats list requires 25 consecutive years of dividend increases. Companies close to this range with strong payout histories and market capitalizations may be candidates for future inclusion.
In summary, companies like McCormick (MKC), Johnson & Johnson (JNJ), Clorox (CLX), and Realty Income (O) are strong current Dividend Aristocrats, while financials like Franklin Resources (BEN) and T. Rowe Price (TROW) with high yields and stable payments could be potential future Dividend Aristocrats if their dividend increase streaks meet the 25-year requirement and other criteria at rebalance dates.
No direct forward-looking official predictions are available, but these key metrics (dividend yield, safety, growth streak) currently guide expectations for potential future Dividend Aristocrats.
Beyond the Aristocrats
While the Dividend Aristocrats are a coveted group, it's essential to remember that there are many other dividend-paying companies worthy of consideration. The BÖRSE ONLINE Global Dividend Stars Index includes exciting dividend stocks, but Verizon is not currently listed.
Edison International, active specifically in the state of California, is expected to increase its payout for the 22nd consecutive year. Meanwhile, Verizon, operating in the telecommunications sector, uses various forms of energy for power production, including coal, uranium, solar, and wind. Verizon is projected to become a dividend aristocrat in five years, with a current dividend yield of 6.5%.
Evergy, a power producer in the U.S., is also expected to achieve the status of dividend aristocrat in the future. Evergy offers a dividend yield of 4.6%.
As always, it's crucial to conduct thorough research and consider your investment goals when deciding which companies to add to your portfolio. Happy investing!
- Based on current data and the typical criteria for Dividend Aristocrats, McCormick & Company (MKC) could potentially join the ranks in the future due to its 38-year dividend growth streak and strong brand portfolio.
- Financial services companies Franklin Resources (BEN) and T. Rowe Price Group (TROW) might be potential future Dividend Aristocrats if their dividend increase streaks meet the 25-year requirement and other criteria at rebalance dates, given their high yields and stable payments, though a thorough review of their dividend histories is necessary to confirm this.
