S&P 500 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.
- Average daily volume must be at least $5 million 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 Dividend Aristocrats for the highest-yielding companies and identified four that all pay investors at least a 5% dividend and are rated Buy by top Wall Street firms that we cover.
Why do we cover the Dividend Aristocrats?
The Dividend Aristocrats offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Amcor
This company offers an excellent investment opportunity, as its products are consistently in demand, and it pays a substantial 6.20% dividend. Amcor PLC (NYSE: AMCR) provides packaging solutions for consumer and healthcare products. The company develops sustainable packaging in flexible and rigid formats across multiple materials.
Its Flexibles segment comprises operations that manufacture flexible and film packaging for the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries.
The Rigid Packaging segment consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including:
- Carbonated soft drinks
- Water
- Juices
- Sports drinks
- Milk-based beverages
- Spirits and wine
- Sauces
- Dressings
- Spreads and personal care items
- Plastic caps for a wide variety of applications
The company’s subsidiaries include Amcor Flexibles North America, Amcor UK Finance, and Amcor Finance (USA).
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 and a rich 5.33% dividend. It 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.
Franklin Resources
Franklin Resources Inc. (NYSE: BEN), more commonly known as Franklin Templeton, is one of the world’s largest investment management firms. This mutual fund powerhouse pays a safe 5.54% dividend and 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 these brands:
- 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.
Target
Target Corp. (NYSE: TGT) is an American retail corporation with a chain of discount department stores and hypermarkets, boasting a stellar 5.01% dividend yield. This company remains a solid and safe retail investment, offering a total return despite some rough public relations issues over the past few years. Target offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.
Target also provides:
- Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath
- Home Improvement
- School/office supplies
- Greeting cards, party supplies, and other seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.
The company suffered a “Bud Light” moment a few years after the disastrous merchandising of LGBTQ products, which struck a nerve among many shoppers. While not as severe as the beer giants’ conundrum, it was a significant negative that has seemingly subsided.
Oppenheimer has an Outperform rating, accompanied by a $165 target price.
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