February Worst Month Since September of 2023 - Grab Our 5 Favorite Dividend Aristocrats Now

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Published: March 3, 2025 12:34 pm

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The NASDAQ composite index has been scorching hot since the fall of 2022, as the Magnificent 7 drove the markets to all-time highs. However, that came to a screeching halt in February, when it posted its most significant decline of 5% since September 2023, when it was down 5.8%. With mounting evidence that growth is slowing and earnings may not grow nearly as fast as Wall Street initially thought as we started the year, many feel we could be on the road to recession.

The Federal Reserve in Atlanta, noting early economic numbers, feels we could be headed for negative gross domestic product growth. If that’s the case, and if it occurs in the second quarter, we would officially be in a recession.

24/7 Wall St. Key Points:

The climb in interest rates from 0% to the current 4.3% is just now working its way onto the economy
Many on Wall Street think Fed easing is over until 2025, that could change if recession sets in
Tariff threats and geopolitical concerns have weighed on investors’ sentiment
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Investors looking for defensive companies paying big dividends are drawn to the Dividend Aristocrats and with good reason. The 66 companies that made the cut for the 2025 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight. But the requirements go even further, with the following attributes also mandatory for membership on the dividend aristocrats list:

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

Specific stock sectors tend to perform better during recessions due to their nature and the consistent demand for goods or services. These sectors are often seen as recession-resistant because they provide products and services that people still need, even when the economy is struggling. Consumer staples, healthcare, utilities, telecommunications, real estate, and gold are among the best sectors to own during recessions. We screened the 2025 Dividend Aristocrats looking for the companies that typically hold up better during recessions, and offer the solid and dependable dividends the group specializes in. Five of our favorite companies are outstanding ideas for growth and income investors now.

Why do we cover the Dividend Aristocrats?

S&P 500 Companies that have paid and raised their dividends for 25 years or longer are the kind that growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names.

Consolidated Edison

This old-school utility stock offers income investors the stability and track record many seek now, as well as a 3.35% dividend. Consolidated Edison Inc. (NYSE: ED), through its subsidiaries, operates regulated electric, gas, and steam delivery businesses in the United States.

It offers electric services to approximately:

3.6 million customers in New York City and Westchester County
Gas to about 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County
Steam to approximately 1,530 customers in parts of Manhattan

The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey and gas to about 0.1 million customers in southeastern New York.

In addition, it operates:

543 circuit miles of transmission lines
15 transmission substations
63 distribution substations
87,951 in-service line transformers
3,869 pole miles of overhead distribution lines
2,320 miles of underground distribution lines
4,359 miles of mains
377,741 service lines for natural gas distribution

Consolidated Edison owns, develops, and operates renewable and energy infrastructure projects, provides energy-related products and services to wholesale and retail customers, and invests in electric and gas transmission projects.

Eversource Energy

Eversource is an energy provider serving customers in Connecticut, Massachusetts, and New Hampshire.

This is another conservative utility stock idea which is off the radar and pays a rich 4.78% dividend. Eversource Energy (NYSE: ES) is a utility holding company engaged in the energy delivery business through its utility subsidiaries.

Its segments include:

Electric Distribution
Electric Transmission
Natural Gas Distribution
Water Distribution

The Electric Distribution segment distributes electricity to retail customers in Connecticut, Massachusetts, and New Hampshire, respectively, and to NSTAR Electric Company’s solar power facilities.

The Electric Transmission segment owns and maintains transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England.

The Natural Gas Distribution distributes natural gas to its central and eastern Massachusetts customers.

The Water Distribution segment provides water services to over 248,000 residential, commercial, industrial, municipal, fire protection, and other customers in 73 towns and cities in Connecticut, Massachusetts, and New Hampshire.

JM Smucker

This well-known company makes products that never go out of style and pays a sweet 3.95% dividend. JM Smucker Co. (NYSE: SJM) manufactures and markets branded food and beverage products worldwide. The Company’s branded food and beverage products include a portfolio of brands sold to consumers primarily through retail outlets in North America.

The Company operates through four segments:

U.S. Retail Coffee
U.S. Retail Frozen Handheld and Spreads
U.S. Retail Pet Foods
Sweet Baked Snacks

The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers, Dunkin’, and Cafe Bustelo branded coffee.

The U.S. Retail Frozen Handheld and Spreads segment primarily includes domestic sales of Smucker’s and Jif-branded products.

The U.S. Retail Pet Foods segment primarily includes the domestic sales of Meow Mix, Milk-Bone, Pup-Peroni, and Canine Carry Outs branded products.

The Sweet Baked Snacks segment primarily includes all domestic and foreign sales of Hostess branded products on all channels.

Medtronic

Medtronic plc (NYSE: MDT) is a medical technology giant that pays a 3.05% dividend and is a solid pick for investors looking for a safe position in the healthcare devices sector. The company develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide.

The Cardiovascular Portfolio segment offers:

Implantable cardiac pacemakers
Cardioverter defibrillators
Cardiac resynchronization therapy devices
Cardiac ablation products
Insertable cardiac monitor systems
TYRX products; and remote monitoring and patient-centered software

It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, transcatheter pulmonary valves, percutaneous coronary intervention products, and percutaneous angioplasty balloons.

The Neuroscience Portfolio segment offers:

Medical devices and implants
Biologic solutions
Spinal cord stimulation and brain modulation systems
Implantable drug infusion systems
Interventional products
Nerve ablation systems under the Accurian name

The segment offers products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, urogynecologists, interventional radiologists, ear, nose, and throat specialists, and energy surgical instruments.

The Medical Surgical Portfolio segment offers:

Surgical stapling devices, Vessel sealing instruments
Wound closure and electrosurgery products
AI-powered surgical video and analytics platform
Robotic-assisted surgery products
Hernia mechanical devices
Mesh implants
Gynecology products
Gastrointestinal and hepatologic diagnostics and therapies
Therapies to treat other non-exclusive diseases and conditions; and patient monitoring and airway management products.

The Diabetes Operating Unit segment provides insulin pumps and consumables, continuous glucose monitoring systems, and InPen, an innovative insulin pen system.

Realty Income

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2025. It pays a whopping 5.65% dividend. Realty Income Corporation (NYSE: O) is a real estate investment trust.

The Company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.

It is engaged in a single business activity: leasing property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in multiple industries.

The Company owns approximately 15,450 properties across 86 different industries leased to over 1,300 clients throughout all 50 states, as well as: