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Dividend aristocrats tend to be some of the most reliable stocks. These companies have raised dividends for at least 25 consecutive years, showing steady long-term growth and strong financial discipline. Those steady dividend hikes result in higher cash flow as you get older, and you’ll also get exposure to a high-performing corporation’s growth. These are the three dividend aristocrat stocks to buy for passive income.
Walmart
Walmart (NASDAQ:WMT | WMT Price Prediction) has established itself as the leading global retailer. It has more than 10,000 retail locations and continues to deliver solid growth for long-term investors. Its revenue increased by 5.8% year-over-year in Q3 FY26, which prompted the retailer to raise its fiscal 2026 outlook. Walmart also saw resilient shoppers based on its 4.5% year-over-year comparable U.S. sales growth. Shoppers return to Walmart locations frequently and gradually place larger orders.
Walmart is the place many people go to for groceries, and since it has almost every item in its locations, people end up buying far more than groceries. The global retailer’s success has also translated into e-commerce growth, with online sales up by 27% year-over-year. Success with online ads is also boosting profit margins, although it may take several years before Walmart’s advertising business makes up a meaningful percentage of total sales.
The $1 trillion company only has a 0.72% yield, but it has raised its dividend for the 52nd consecutive year in 2025. Walmart hiked its dividend by 13% during that big announcement, offering a taste of the type of long-term growth shareholders can end up with.
Realty Income
Realty Income (NYSE:O) is one of the most well-known REITs among dividend income investors. It offers a 5.11% yield and has a diversified portfolio of 15,500 real estate properties. The company specializes in long-term net lease agreements that are at least 10 years. It also has large corporations as its customers, which results in reliable cash flow. It has over 1,600 clients and a 98.7% occupancy rate.
The reliable cash flow and diversified customer base have made Realty Income one of the few companies to provide monthly dividend distributions. That key perk has made it a fan-favorite among many dividend income investors. The REIT even raises its monthly dividend payouts multiple times per year based on its dividend history.
Realty Income has been in business for almost 60 years. It also has more than 30 consecutive years of dividend hikes, which includes 112 consecutive quarterly increases. Commercial real estate is critical for Realty Income’s customers, and that leads to steady monthly payouts to investors. To top it all off, the company is still growing, based on its 10.7% sales growth in the third quarter.
IBM
IBM (NYSE:IBM) has staged an incredible comeback after a lost decade of returns. The stock is up by more than 150% over the past five years as its cloud and AI bets pay off. The RedHat acquisition continues to bear fruit as the cloud platform’s revenue increased by 14% year-over-year in Q3. IBM also saw strong demand for its Infrastructure segment, which grew by 17% year-over-year. Overall sales were up by 9% year-over-year.
The tech company has positioned itself to benefit from the AI boom, with CEO Arvind Krishna saying that its AI book of business stands at $9.5 billion. Generative AI should continue to gain traction in the years ahead, and that will lead to more demand for IBM’s software and AI resources.
Last year was IBM’s 30th consecutive year of dividend hikes. While IBM doesn’t raise its dividend by much each year, it already offers a solid 2.25% yield. That’s more than what you can get from most tech stocks with direct exposure to AI and cloud computing.