Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
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 2026 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 Dividend Aristocrats list:
- Companies must be worth at least $3 billion for each quarterly rebalancing.
- Their 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.
With the stock market enjoying yet another positive year, albeit a very volatile one, we screened the 2026 Dividend Aristocrats to see which stocks outperformed the S&P 500, which is up 12.60% this year. That’s a solid mark, but the legacy index is being swamped by the small-cap Russell 2000, which is up 23.08%. We found five top Dividend Aristocrats that are outperforming the S&P 500 by a wide margin, and all are Buy-rated by top Wall Street firms.
Why Do We Cover the Dividend Aristocrats?
S&P 500 companies that have paid and raised dividends for 25 years or longer are the types of investments growth and income investors want to buy and hold for the long term. These stocks are mostly conservative, and if we see a dramatic market correction, they will likely hold up much better than volatile technology and momentum names.
Caterpillar
The giant equipment company has had a banner 2026 and is walloping the S&P 500, up 36.46% year-to-date, while paying a small 0.75% dividend. Caterpillar (NYSE:CAT | CAT Price Prediction) is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its segments include:
- Construction Industries
- Resource Industries
- Power & Energy
The Construction Industries segment supports customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high-productivity equipment for surface and underground mining operations worldwide, and provides select work tools, machinery components, wear and maintenance components, and related parts.
The Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines. It also develops and provides mining software solutions for the mining industry.
Caterpillar also provides financing and related services through its Financial Products segment.
Oppenheimer has an Outperform rating with a $1,118 target.
Coca-Cola
Coca-Cola (NYSE:KO) is an American multinational corporation founded in 1892 and is up 31.58% in 2026. This company remains a long-term top holding of Warren Buffett, whose 400 million shares represent 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.34% dividend.
The company posted strong results, reporting $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus estimates and raising its full-year earnings growth forecast to 8% to 9%.
Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Coca-Cola Light
- Coca-Cola Zero Sugar
- Caffeine-free Diet Coke
- Cherry Coke
- Fanta Orange
- Fanta Zero Orange
- Fanta Zero Sugar
- Fanta Apple
- Sprite
- Sprite Zero Sugar
- Simply Orange
- Simply Apple
- Simply Grapefruit
- Fresca
- Schweppes
- Dasani
- Fuze Tea
- Glacéau Smartwater
- Glacéau Vitaminwater
- Gold Peak
- Ice Dew
- Powerade
- Topo Chico
- Minute Maid
Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. And remember that the company owns 19.5% of Monster Beverage (NASDAQ:MNST), which continues to deliver strong financial results.
UBS has a Buy rating with a $104 target price on the shares.
Colgate-Palmolive
This consumer staples giant has been very conservative, paying a dividend every year since 1895, currently yielding 2.29%, and is up a solid 16% this year. Colgate-Palmolive (NYSE:CL) is a growth company focused on oral care, personal care, home care, and pet nutrition. It sells its products under brands such as:
- Colgate
- Palmolive
- Elmex
- Hello
- Meridol
- Sorriso
- Tom’s of Maine
- EltaMD
- Filorga
- Irish Spring
- Lady Speed Stick
- PCA SKIN
- Protex
- Sanex
- Softsoap
- Speed Stick
- Ajax, Axion
- Fabuloso
- Murphy
- Soupline and Suavitel
- Hill’s Science Diet and Hill’s Prescription Diet
The Home Care product segment, which is managed geographically in five segments, such as:
- North America
- Latin America
- Europe
- Asia Pacific
- Africa/Eurasia
All the segments sell primarily to a variety of traditional and e-commerce retailers, wholesalers, distributors, dentists, and skin health professionals.
The Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. Customers for Pet Nutrition products include authorized pet supply retailers, veterinarians, and e-commerce retailers.
Deutsche Bank has a Buy rating with a $101 target price.
Exxon Mobil
Exxon Mobil (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuel, lubricant, and chemical companies, and is up 37.06% in 2026. Despite rising oil prices, investors still have an excellent entry point to secure a strong 2.46% dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in North and South America, Europe, Africa, Asia, and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. And 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 optimistic about the company’s sharp positive inflection in capital allocation strategy. The upstream portfolio offers leverage to a further demand recovery, and Exxon offers greater Downstream/Chemicals exposure than its peers.
Exxon completed its purchase of oil shale giant Pioneer Natural Resources in 2024 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.
Morgan Stanley has an Overweight rating with a $177 target price.
Target
The big-box retailing giant has had a remarkable 2026, surging 58% year to date, while paying a 3.01% dividend. Target (NYSE:TGT) is a general merchandise retailer in the United States. It offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers 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
The company also 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.
D.A. Davidson has a Buy rating and a $185 target price.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks