7 'Strong Buy' Dividend Aristocrats That Blew Away Q3 Earnings Expectations

Investors that were long technology got a very rude awakening last week as a host of top companies in the sector reported poor third-quarter results. Most added insult to injury by offering up lousy forward guidance for the fourth quarter as well, and some even announced big layoffs. Facebook parent Meta reportedly will cut 15% of its workforce. Overall, a stunning 44,000 tech workers across the industry have already lost their jobs this year, and more cuts are likely on the way.

While the best plan now may be to stay in cash, if passive income is required from investments, savvy growth and income investors look for solid companies paying big and dependable dividends. Many are drawn to the Dividend Aristocrats. The 66 companies that made the cut for the 2022 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight. But the requirements go even further, as the following attributes also are mandatory for membership on the list:

  • They must be a member of the S&P 500.
  • Companies must be worth at least $3 billion at the time of each quarterly rebalancing.
  • Average daily volume of at least $5 million in transactions is required for every trailing three-month period at every quarterly rebalancing date.

With the potential for big downside still looming, and interest rates definitely headed higher, we thought it would be a good idea to look for companies on the Dividend Aristocrats that posted solid third-quarter results that exceed Wall Street expectations. Seven stocks hit our screens, all of which are Buy rated at top Wall Street firms. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Abbott Laboratories

This is a top pharmaceutical and med-tech stock with very solid growth potential. Abbott Laboratories (NYSE: ABT) manufactures and sells health care products worldwide.

Its Established Pharmaceutical Products segment offers branded generic pharmaceuticals to treat pancreatic exocrine insufficiency; irritable bowel syndrome or biliary spasm; intrahepatic cholestasis or depressive symptoms; gynecological disorders; hormone replacement therapy; dyslipidemia; hypertension; hypothyroidism; Ménière’s disease and vestibular vertigo; pain, fever and inflammation; migraines; anti-infective clarithromycin; cardiovascular and metabolic products; and influenza vaccines, as well as to regulate physiological rhythm of the colon.

The LabsDiagnostic Products segment provides immunoassay and clinical chemistry systems; assays used to screen and/or diagnose cancer, cardiac, drugs of abuse, fertility, infectious diseases and therapeutic drug monitoring; hematology systems and reagents; diagnostic systems and cartridges; instruments to automate the extraction, purification and preparation of DNA and RNA from patient samples, and detects and measures infectious agents; genomic-based tests; informatics and automation solutions; and a suite of informatics tools and professional services.

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