While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 66 and 10 months by 1959. For anyone born in 1960 or later, full retirement benefits are payable at age 67. Baby Boomers and those nearing retirement are likely aware that Social Security alone will not provide a comfortable retirement, so passive income can be a significant help in increasing overall monthly income. The Dividend Aristocrats are among the best investment ideas for those looking to generate safe and reliable passive income, and some growth potential to fight inflation.
Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies on the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years or longer. But the requirements go even further, with the following attributes also mandatory for membership on the vaunted list:
- Companies must be worth at least $3 billion for each quarterly rebalancing.
- Their 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 2025 Dividend Aristocrats to identify the companies that Wall Street feels are the best values in the group and offer the best entry points. Five top companies hit our screens, all making sense for investors seeking dependable income and growth potential without undue risk. All five are rated Buy at 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.
Becton Dickinson
This medical device manufacturer is currently trading about 31% below its estimated fair value, with a price-to-fair-value ratio of 0.69. It offers a 2.10% dividend yield and maintains a very narrow economic moat. The company is undergoing a strategic repositioning following recent challenges, including the planned spin-off of its life sciences division. Becton Dickinson and Co. (NYSE: BDX) is engaged in the development, manufacture, and sale of a broad range of medical supplies, devices, laboratory equipment, and diagnostic products used by healthcare institutions, physicians, life science researchers, clinical laboratories, and more.
The company has four main divisions:
- BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings.
- The BD Medical segment consists of various business units, including medication delivery solutions, medication management solutions, advanced monitoring, and pharmaceutical systems.
- BD Life Sciences segment provides products for the collection and transport of diagnostic specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections, and cancers.
- The BD Interventional segment provides vascular, urology, oncology, and surgical specialty products.
Barclays has an Overweight rating with a $241 target price.
Brown Forman
Currently trading about 26% below its fair value, with a price-to-fair-value ratio of 0.74, this maker of Jack Daniel’s offers a rich 3.23% dividend yield. The company enjoys a broad economic moat, supported by strong brand loyalty and its leading position in the premium American whiskey market.
Brown-Forman Corp. (NYSE: BF-B) manufactures, distills, bottles, imports, exports, markets, and sells a variety of beverage alcohol products under brands. It has built a portfolio of more than 40 spirit, ready-to-drink (RTD) cocktails, and wine brands sold in over 170 countries.
The company’s brands include:
- Jack Daniel’s family of brands
- Woodford Reserve
- Herradura
- el Jimador
- Korbel
- New Mix
- Old Forester
- The Glendronach
- Glenglassaugh
- Benriach
- Diplomatico Rum
- Chambord
- Gin Mare
- Fords Gin
- Slane
- Coopers’ Craft
The Jack Daniel’s family of brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTD, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Apple, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Bonded Tennessee Whiskey, Jack Daniel’s Bonded Tennessee Rye, Jack Daniel’s Triple Mash Blended Straight Whiskey, Jack Daniel’s American Single Malt, and Jack Daniel’s 12 Year Old.
Barclays has an Overweight rating with a $30 price objective.
Clorox
With products that never go out of style, a 26% discount, a 0.74 price-to-fair-value ratio, and a massive 4.10% dividend, this is the perfect buy for conservative investors. Clorox Co. (NYSE: CLX) is a multinational manufacturer and marketer of consumer and professional products.
The company operates through four segments:
- Health and Wellness
- Household
- Lifestyle
- International
The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands:
- Clorox
- Clorox2
- Pine-Sol
- Scentiva
- Tilex
- Liquid-Plumr
- Formula 409
Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States.
The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands.
International products consist of those sold outside the United States, including laundry additives, home care products, bags and wraps, cat litter, and water-filtration products.
Jefferies has a Buy rating with a $145 target price.
Exxon Mobil
Exxon Mobil Corp. (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. It trades at 18% below fair value with a 3.46% yield. The decline in oil prices presents investors with an excellent entry point, and they will likely seize the opportunity to secure a strong dividend yield.
Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. It manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.
Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy. Exxon offers greater Downstream/Chemicals exposure than its peers.
Exxon has completed its purchase of oil shale giant Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.
UBS has a Buy rating on the shares with a $143 price objective.
Medtronic
Medtronic PLC (NYSE: MDT) is a leading medical technology company that pays a dependable dividend, making it a solid choice for investors seeking a safe investment in the healthcare devices segment. The company develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Trading at 17% undervalued at a 0.83 price-to-fair-value, this medical device giant offers a 2.87% yield. The company typically returns 60% to 70% of free cash flow to shareholders.
Its Cardiovascular Portfolio segment offers:
- Implantable cardiac pacemakers
- Cardioverter defibrillators
- Cardiac resynchronization therapy devices
- Cardiac ablation products
- Insertable cardiac monitor systems
- TYRX products, 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.
The target price at BofA Securities is $100, and the firm has a Buy rating.
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