Dividend Aristocrats are companies that have raised their dividends for over 25 consecutive years, making them ideal for investors seeking a reliable income stream. As we enter 2025, stocks like Coca-Cola Co. (KO), Abbott Laboratories (ABT), and Chevron (CVX) stand out for their impressive dividend histories. Wall Street analysts have rated them as a “Strong Buy,” and expect more than 15% upside potential from their current levels.
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Now, let’s take a closer look at these three Dividend Aristocrat stocks.
Coca-Cola Co.
Coca-Cola, a beverage industry leader, has rewarded shareholders with 62 years of consecutive dividend increases. The company’s well-known brand and wide range of products support steady global demand. The stock offers a dividend yield of 3.11%, higher than the Consumer Defensive sector average of 2.6%.
Meanwhile, its investments in low- and no-sugar beverages, as well as its foray into new categories like energy drinks and ready-to-drink coffee, provide growth opportunities. Building on this momentum, Stephen Powers from Deutsche Bank upgraded Coca-Cola to Buy from Hold and raised the price target to $70. He highlighted Coca-Cola’s strong business momentum, noting that the company has achieved consistent volume growth over the past three years, even with significant price increases. Additionally, he emphasized KO’s positive market share trends, which continue to reflect its strong position in the non-alcoholic beverage sector.
Among the 13 analysts covering KO stock, 11 rated it a Buy, and two assigned a Hold rating. The analysts’ average price target on Coca-Cola stock of $74.27 implies a 19% potential upside from the current level. Shares of the company have gained 8% over the past year.
Abbott Laboratories
Abbott Laboratories, a global healthcare firm, has a solid dividend history, highlighting its financial strength and dedication to shareholders. The stock offers a dividend yield of 1.91%, which is higher than the Healthcare sector average of 1.6%.
Meanwhile, Abbott’s range of products in diagnostics, devices, nutrition, and medicines supports steady growth, making the company a stable choice for long-term investors. In the past month, six analysts reaffirmed their Buy ratings on the stock, with some also raising their price targets. In the past month, six analysts reaffirmed their Buy ratings on the stock, with some also raising their price targets.
Wall Street analysts have assigned Abbott Laboratories a “Strong Buy” rating. The analysts’ average price target on ABT stock of $133.61 implies a 16.9% potential upside from the current level. Shares of the company have gained 7% year-to-date.
Chevron
Chevron, one of the largest oil and gas companies in the world, is another Dividend Aristocrat with strong growth prospects. The company has increased its dividend for more than 35 years, benefiting from its vast energy infrastructure and global operations. The stock offers a dividend yield of 4.53%, higher than the Energy sector average of 3.4%.
Chevron’s robust cash flow, commitment to returning value to shareholders, and diversification into renewable energy projects make it a strong long-term investment for dividend investors. In the past month, 11 analysts reaffirmed their Buy ratings Chevron.
Among the 15 analysts covering CVX stock, 15 rated it a Buy, and three assigned a Hold rating. The analysts’ average price target on Chevron stock of $174.44 implies a 21% potential upside from the current level. Shares of the company have gained 9% over the past year.
Concluding Thoughts
KO, ABT, and CVX demonstrate their financial strength and stability through consistent and growing dividend payouts. Additionally, the bullish view of Wall Street analysts helps instill further confidence in these stocks.
