Dividend Aristocrats are companies that have increased their dividends for over 25 consecutive years. These stocks are suitable for investors looking for a reliable and stable source of income. General Dynamics (NYSE:GD) and Pentair (NYSE:PNR) are two such stocks that boast an impressive dividend history. Furthermore, Wall Street analysts have rated both stocks a “Strong Buy” and expect more than 5% upside potential from their current levels.
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Now, let’s take a closer look at these two Dividend Aristocrat stocks.
Is GD Stock a Good Investment?
General Dynamics is a global aerospace and defense company. The company has an impressive history of raising dividends for the past 33 years. Additionally, its dividend yield of 1.8% further enhances the stock’s appeal to investors.
The company is benefiting from the ongoing geopolitical tensions, leading to a rising demand for military hardware and aircraft. Also, GD continues to invest in the adoption of new technologies, such as artificial intelligence (AI) and cybersecurity, which should further support its growth.
Among the 18 analysts covering GD stock, 14 rated it a Buy, and four assigned a Hold rating. The analysts’ average price target on GD stock of $315.06 implies a 5.7% potential upside from the current level. Shares of the company have gained 16% year-to-date.
Is PNR Stock a Buy?
Pentair is a global water treatment company that provides water and fluid management solutions. Importantly, the company has raised dividends for 49 consecutive years. Moreover, PNR stock offers a dividend yield of 1.13%.
Pentair is expected to benefit from several tailwinds, such as the aging water infrastructure in the U.S. Furthermore, the strong water demand in the commercial sector due to the opening of quick-service restaurants bodes well for the company’s performance in the near term.
PNR has received 12 Buy and four Hold recommendations for a Strong Buy consensus rating. Further, analysts’ average price target on Pentair stock of $93.19 implies 17.09% upside potential. The stock has gained 10.1% so far in 2024.
Concluding Thoughts
GD’s and PNR’s commitment to rewarding shareholders with regular and growing dividends reflects the financial strength and stability of these companies. Additionally, the bullish view of Wall Street analysts helps instill further confidence in these stocks.
