When it comes to investing in the stock market, some investors chase high-growth companies with the potential for major capital gains. Others, however, lean toward a more stable, income-focused strategy—investing in what are known as “dividend aristocrats.” These are companies that have consistently paid and increased dividends over the long term, making them an appealing option for those looking to generate passive income and steady returns over time.
In this guide, we’ll explore what makes a company a dividend aristocrat, why these stocks are appealing, and which companies make the cut in 2025—both in the U.S. and Europe. We’ll also present our top picks for the year and offer a real-world example of long-term dividend investing using Coca-Cola stock. Finally, we’ll discuss how to invest in dividend aristocrats through ETFs for broader exposure and simplicity.
What Are Dividend Aristocrats?
In the U.S., a “dividend aristocrat” is a title reserved for elite companies that meet the following criteria:
- They’ve increased their dividend payouts every year for at least 25 consecutive years.
- They maintain a daily trading volume of at least $5 million.
- They have a market capitalization of $3 billion or more.
These standards help ensure that dividend aristocrats are not only financially robust but also liquid and capable of weathering economic storms. Household names like Coca-Cola and McDonald’s are classic examples.
In France and the broader European market, the definition is a bit looser. While companies may not strictly meet the 25-year threshold, the focus is on large, reputable firms with a solid track record of paying and raising dividends over many years. French examples include Air Liquide, Sanofi, Legrand, and Bouygues.
Also read: Why Do Companies Choose to Pay Dividends—or Not?
Why Invest in Dividend Aristocrats?
The appeal of dividend aristocrats lies in their balance of reliability and reward. Unlike speculative growth stocks that may never generate profits, dividend aristocrats consistently return value to shareholders through regular cash payouts.
This strategy is particularly compelling during volatile or bearish markets. Dividends can soften the blow of price drops and provide ongoing returns regardless of market sentiment. In fact, over the long haul, dividends have been a major contributor to total investment returns, especially when reinvested.
Long-term investors often appreciate the compounding effect that comes from reinvesting dividends over time. A great example is Coca-Cola, which has delivered strong total returns for investors who’ve held the stock—and reinvested dividends—for two decades or more.
U.S. Dividend Aristocrats: Full 2025 List
As of May 20, 2025, here are the 45 companies that currently make up the U.S. Dividend Aristocrats list:
- A. O. Smith Corporation
- Abbott Laboratories
- Aflac Incorporated
- Amcor plc
- Atmos Energy Corporation
- Automatic Data Processing, Inc. (ADP)
- Becton, Dickinson and Company
- Brown & Brown, Inc.
- C.H. Robinson Worldwide, Inc.
- Cardinal Health, Inc.
- Caterpillar Inc.
- Chubb Limited
- Church & Dwight Co., Inc.
- Cintas Corporation
- Colgate-Palmolive Company
- Dover Corporation
- Ecolab Inc.
- Emerson Electric Co.
- Erie Indemnity Company
- Expeditors International of Washington, Inc.
- FactSet Research Systems Inc.
- Fastenal Company
- Franklin Resources, Inc.
- General Dynamics Corporation
- Illinois Tool Works Inc.
- IBM (International Business Machines Corporation)
- Kenvue Inc.
- Linde plc
- Lowe’s Companies, Inc.
- NextEra Energy, Inc.
- Nordson Corporation
- Nucor Corporation
- Pentair plc
- Realty Income Corporation
- Roper Technologies, Inc.
- S&P Global Inc.
- T. Rowe Price Group, Inc.
- Target Corporation
- The Clorox Company
- The J.M. Smucker Company
- Procter & Gamble Company
- The Sherwin-Williams Company
- W.W. Grainger, Inc.
- Walmart Inc.
- West Pharmaceutical Services, Inc.
Our Top 3 U.S. Dividend Aristocrats for 2025
1. Procter & Gamble (PG)
With a diversified portfolio of household staples and a history of raising dividends for over 60 years, P&G remains a cornerstone for income-focused portfolios.
2. Realty Income Corp. (O)
Known as “The Monthly Dividend Company,” Realty Income stands out for its monthly payouts and real estate-backed reliability, offering consistent returns and inflation resistance.
3. Caterpillar Inc. (CAT)
As a global leader in construction and mining equipment, Caterpillar has strong cash flow and a resilient business model, making it an industrial giant with dividend appeal.
Investing in Dividend Aristocrats Through ETFs
For investors who want exposure to dividend aristocrats without picking individual stocks, exchange-traded funds (ETFs) offer a convenient solution. These funds pool together dozens of aristocrat stocks, providing instant diversification and reducing company-specific risk.
Popular options include:
- ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
- SPDR S&P Global Dividend ETF (WDIV)
- Vanguard Dividend Appreciation ETF (VIG)
These ETFs are particularly well-suited for long-term investors who prioritize steady income and value preservation.
Final Thoughts
Dividend aristocrats offer a compelling blend of income, stability, and long-term growth. While they may not always deliver explosive gains, their consistency and reliability make them a valuable foundation in any portfolio—especially in uncertain times.
Whether you’re buying individual stocks like Coca-Cola and Procter & Gamble, or taking the ETF route for broad exposure, dividend aristocrats are a proven strategy for building wealth over time. And in 2025, with market volatility and economic uncertainty still looming, they remain a beacon of financial resilience.