Dividend aristocrats offer stability and rising cash flow. These corporations have been raising their dividends each year for at least 25 years, and some of them have delivered market-beating returns.Â
These stocks aren’t cool in the day of artificial intelligence and explosive growth stock gains, but they take a slow and steady approach to the finish line. Dividend investors who are seeking additional cash flow from overlooked dividend aristocrats may want to consider these picks.Â
Key Points
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Dividend aristocrats have been raising their dividends for at least 25 years, and in the world of AI, some of them are overlooked.
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These same dividend aristocrats have outperformed the stock market over several years, and they look ready for repeat performances.
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Walmart (WMT)
Walmart (
Shares are up by 10% year-to-date and have more than doubled over the past five years. The stock has a 0.95% yield that comes with a growing business. Walmart delivered 2.5% year-over-year revenue growth in Q1 FY26 and saw more success from two key growth opportunities. Global e-commerce sales surged by 22% year-over-year, while Walmart’s small, high-margin advertising business jumped by 50% year-over-year.Â
Online ads make up a small percentage of Walmart’s total revenue. However, this segment has done wonders for Walmart’s profits. It now accounts for roughly one-third of Walmart’s total profits. Higher profits can support accelerated dividend growth in the years ahead.
Cintas (CTAS)
Cintas (NASDAQ:CTAS) has been another market beater. It’s up by 23% year-to-date and has tripled over the past five years. The stock comes with a 0.80% yield and an excellent dividend growth rate. Cintas has an annualized 22.1% dividend growth rate over the past decade.
The company offers essential business equipment and supplies to more than one million businesses in North America. With 16 million businesses in the entire continent, Cintas still has plenty of opportunities to expand its market share.
Cintas continues to grow and reward investors. The company delivered 8.0% year-over-year revenue growth in Q4 FY25. Net income jumped by 8.2% year-over-year, resulting in a slight boost to the company’s net profit margin. Steady revenue and net income growth will make it easier for Cintas to continue boosting its dividend for long-term investors.
IBM (IBM)
IBM (NYSE:IBM) is no longer a slower mover. The stock has more than doubled over the past five years, and almost all of those gains have taken place over the past three years. The stock has a 2.60% yield and has delivered a 17% year-to-date return.
The company’s resurgence centers around artificial intelligence and cloud computing. Revenue increased by 8% year-over-year in the second quarter. Software and infrastructure were key components, boasting 10% and 14% year-over-year revenue growth, respectively. IBM CEO Arvind Krishna mentioned that the company’s generative AI book of business is accelerating and used that remark to raise guidance.Â
IBM’s top-line growth has also contributed to a bottom-line surge. The company reported 19.6% year-over-year net income growth, resulting in a 12.9% net profit margin. IBM’s dividend growth rate has been quite slow over the past few years, but if profit margins continue to expand, IBM may end up hiking its dividend at a respectable rate again.
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