S&P companies that have raised their dividends for shareholders for over 25 years are the kind of investments that passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. The Dividend Aristocrats comprise 69 companies that have increased their dividends for at least 25 consecutive years, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue.
Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list:
- Companies must be worth at least $3 billion for each quarterly rebalancing.
- The average daily volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date.
- They must be a member of the S&P 500.
We screened the 2025 Dividend Aristocrats to identify the companies that Wall Street endorses for passive income investors. Passive income is a steady stream of unearned income that does not require active traditional work. Ideas for earning passive income include investments, real estate, and side hustles. Five companies that are among the highest yielding in the group are outstanding stocks that Boomers can buy this fall and hold forever. All are Buy-rated by top Wall Street firms that we cover.
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 types that growth and income investors want to buy and hold in their stock portfolios for the long term. 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.
Chevron
Chevron Corp. (NYSE: CVX) is an American multinational oil and gas company. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a substantial dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide through two segments.
The Upstream segment is involved in the following:
- Exploration, development, production, and transportation of crude oil and natural gas
- Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
- Transportation of crude oil through pipelines, and transportation, storage
- Marketing of natural gas, as well as operating a gas-to-liquids plant
The Downstream segment engages in:
- Refining crude oil into petroleum products
- Marketing crude oil, refined products, and lubricants
- Manufacturing and marketing renewable fuels
- Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
- Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives
It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Chevron announced in late 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this fall.
UBS has a Buy rating with a target price of $197.
Eversource Energy
Eversource Energy (NYSE: ES) is an energy provider serving customers in Connecticut, Massachusetts, and New Hampshire. This is a conservative stock idea that is off the radar and pays a rich and dependable dividend. Eversource is a public utility holding company that engages in the energy delivery business.
The company operates through four segments:
- Electric Distribution
- Electric Transmission
- Natural Gas Distribution
- Water Distribution segments
It is involved in the transmission and distribution of electricity, as well as the operation of solar power facilities and the distribution of natural gas.
The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal, and fire protection customers, as well as other customers in Connecticut, Massachusetts, and New Hampshire.
Mizuho has an Outperform rating with a target price of $72.
Federal Realty Investment Trust
Founded in 1962, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities. While real estate has slowly recovered, demand is still growing, and hard assets are generally considered a prudent investment in times of inflation. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation, and redevelopment of high-quality, retail-based properties in major coastal markets, spanning from the District of Columbia and Boston to San Francisco and Los Angeles.
Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply.
Its expertise includes creating urban, mixed-use neighborhoods like:
- Santana Row in San Jose, California
- Pike & Rose in North Bethesda, Maryland
- Assembly Row in Somerville, Massachusetts
Federal Realty’s portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend to its shareholders for 58 consecutive years, the longest record in the REIT industry.
Wells Fargo has an Overweight rating to go with a $116 target price objective.
Franklin Resources
Franklin Resources Inc. (NYSE: BEN), more commonly known as Franklin Templeton, is one of the world’s largest investment management firms. This company is a mutual fund powerhouse that pays a safe dividend. Franklin Resources is among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the United States, an advantage given the maturing U.S. market.
Franklin Resources offers its products and services under the brands of:
- Franklin
- Templeton
- Franklin Mutual Series
- Franklin Bissett
- Fiduciary Trust
- Darby
- Balanced Equity Management
- K2
- LibertyShares
- Edinburgh Partners
The 2023-2025 bull market has been a strong tailwind for the company; however, the stock has traded sideways recently, and the shares appear incredibly cheap. While withdrawals from baby boomers may be a concern, the path forward in 2025 and beyond also appears solid, as the shares have rebounded from their lows in April.
Goldman Sachs has a Buy rating and a $29 target price.
Realty Income
Realty Income Corp. (NYSE: O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors seeking a safer, contrarian investment for the remainder of 2025. Realty Income is an S&P 500 company that provides stockholders with dependable monthly income.
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. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.
The company owns or holds interests in approximately 15,621 properties in:
- All 50 United States
- The United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients doing business in 89 industries, its property types include: retail, industrial, gaming, and others, such as agriculture and office.
Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
Stifel has a Buy rating with a $68 target price.
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