Dividend Powerhouses: Should You Grab These 3 Before Earnings Drop?

In a bull market, average investors can feel like stock market wizards. Soaring indices make even impulsive picks look brilliant, as a rising tide lifts all boats, masking flaws in shaky stocks like overvaluation or weak fundamentals. This euphoria hides risks that surface when markets turn. 

Prudent investors, instead, seek stocks with proven resilience across cycles, offering stability through dividends that cushion price drops. Dividend Aristocrats — companies raising payouts for 25 or more consecutive years — stand out, signaling management’s confidence in future cash flows. This track record isn’t a buy signal alone but a foundation for deeper research, filtering out flash-in-the-pan performers. These stocks often balance growth with income, appealing to those prioritizing long-term wealth over short-term sizzle. 

Next week, three members of the dividend aristocracy report earnings, providing a chance to evaluate their investment case. Let’s dive into their performance, dividend history, risks, and see whether they’re worth buying now.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) has posted modest gains in 2025, with shares up 7.7% year-to-date and trading near $67 per share. This lags the S&P 500’s 20% surge, reflecting a shift from defensive staples. Five-year total returns, including dividends, reach 52%, driven by steady income rather than price spikes. An intraday high of $74.38 per share in April cooled afterwards amid market rotations.

KO’s dividend record, however, is stellar, with 63 years of consecutive increases. The current quarterly payout of $0.51 yields 3%, backed by $9 billion in expected 2025 free cash flow. This reliability shone through crises like the pandemic, affirming KO’s cash-generating prowess.

The beverage giant faces risks such as shifting tastes toward healthier drinks, pressuring soda sales and requiring costly innovation. Emerging markets — accounting for 65% of revenue– also face currency volatility, potentially cutting third-quarter earnings, while geopolitical disruptions and rising input costs challenge margins. Still, Coke remains one of the most valuable global brands and its pricing power ensures stability. With a forward P/E of 20 and a $77 per share consensus price target, KO stock is a buy for income and defense.

Chubb (CB)

Global insurer Chubb (NYSE:CB) has seen uneven 2025 performance with shares up slightly in 2025, but trailing the S&P 500. hitting a high just under $307 per share in March before settling lower. Five-year returns exceed 148% — better than the benchmark index — buoyed by dividends and steady premiums.

Chubb’s 32-year dividend growth streak marks it as an Aristocrat, with a quarterly payout of $0.97 per share, yielding 1.4% annually ($3.88 per share). The 6.6% hike in May reflects robust cash flows, with a 15.97% payout ratio signaling plenty of room for future increases.

However, insurance faces headwinds. Catastrophe losses from hurricanes could hit Q3 earnings, with estimates of $500 million in claims. Regulatory scrutiny on premium hikes and cyber risks, plus economic slowdowns affecting commercial lines (60% of revenue), pose threats. Large clients’ bargaining power may also squeeze margins. 

Despite this, Chubb’s $113 billion market cap and 12.5 P/E ratio suggest value. Its global reach and 15% ROE support growth too, making CB stock another buy for income and resilience.

RTX (RTX)

Aerospace and defense giant RTX (NYSE:RTX) has surged 37% in 2025, with the stock up 37.3% year-to-date to $157.70 after hitting a high of $170.85 per share. Five-year total returns exceed 193%, driven by robust defense and commercial aerospace demand.

Boasting 32 years of consecutive dividend increases, RTX is a leading Dividend Aristocrat. The quarterly payout of $0.63 yields 1.6%, backed by $5 billion in free cash flow and a 40% payout ratio, ensuring sustainability. A $236 billion backlog supports growth.

Earlier this year, RTX’s Pratt & Whitney engine unit saw workers go on strike that was subsequently resolved, and there are supply chain bottlenecks that linger. A call for a $1 trillion Defense Dept. budget by President Trump minimizes budget cut risks in its Raytheon division, which represents almost 32% of revenue. 

With a forward P/E of 23 and a $174 per share price target, RTX remains an attractive buy for income investors.