Investors love S&P 500 dividend stocks, especially those with dependable, high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends. With the potential for a sizable sell-off, we think it makes sense to move to some of the best S&P 500 Dividend Aristocrat stocks now.
Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 66 companies that made the cut for the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list:
- Companies must be worth at least $3 billion for each quarterly rebalancing.
- Average daily volume of at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date.
- They must be a member of the S&P 500.
We screened the list for safe, reliable stocks that make sense as we approach the start of the fourth year of the long-running stock market rally. The S&P 500 is up a stunning 41% from its lows in April, so it makes sense to shift to a safer investing posture in case a big sell-off comes. As usual, it’s not a question of if, but when.
Why do we cover the Dividend Aristocrats?
S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names.
Consolidated Edison
Consolidated Edison Inc. (NYSE: ED) is one of the largest investor-owned energy companies in the United States. This old-school utility stock offers income investors the stability and track record many seek today, and it pays a strong 3.38% dividend. The company, through its subsidiaries, Consolidated Edison Company of New York (CECONY), Orange and Rockland Utilities (O&R), and Con Edison Transmission, provides a range of energy-related products and services to its customers.
CECONY is a regulated utility providing electric service in New York City and New York’s Westchester County, gas service in Manhattan, the Bronx, parts of Queens, and parts of Westchester, and steam service in Manhattan.
O&R and its utility subsidiary, Rockland Electric, provide electric service to customers in southeastern New York and northern New Jersey, a 1,300-square-mile service area.
O&R delivers gas to customers in southeastern New York.
Con Edison Transmission primarily falls under the oversight of the Federal Energy Regulatory Commission and, through joint ventures, manages both electric and gas assets while seeking to develop electric transmission projects.
Mizuho has an Outperform rating with a $112 target price.
Exxon Mobil
Exxon Mobil Corp. (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. The decline in oil prices presents investors with an excellent entry point, and they will likely seize the opportunity to secure a strong 3.41% dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania.
The energy giant also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, 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 stable oil price environment. Most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy, particularly in the Upstream portfolio and its leverage to a further demand recovery. Exxon offers greater Downstream/Chemicals exposure than its peers.
Exxon completed its purchase of oil shale giant Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion in 2024. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.
UBS has a Buy rating on the shares with a $145 target price.
Johnson & Johnson
This multinational American corporation specializes in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and paying a 2.45% dividend, this diversified healthcare giant is a strong buy at current prices. Johnson & Johnson (NYSE: JNJ) is among the most conservative of the major pharmaceutical companies, with a diverse product portfolio and a familiar, solid brand.
The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is on products related to human health and well-being. This healthcare giant has 63 years of consecutive dividend increases and has streamlined its business by divesting its consumer products division in 2023, now focusing exclusively on pharmaceuticals and medical devices. It operates through two segments.
The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy platform for the treatment of coronary artery disease and peripheral artery disease.
ScotiaBank has a Sector Outperform with a $230 target price.
Kimberly-Clark
Kimberly-Clark Corp. (NYSE: KMB) is an American multinational personal care corporation that produces mostly paper-based consumer products. This consumer staples leader is a safe bet for nervous investors, paying a dependable, high 4.62% dividend. Kimberly-Clark manufactures and markets personal care and consumer tissue products worldwide.
The company is acquiring Kenvue Inc. (NYSE: KVUE) in an enterprise value deal valued at approximately $48.7 billion. The cash-and-stock transaction, announced in early November 2025, is expected to close in the second half of 2026, subject to shareholder and regulatory approvals. The combined company will create a larger global health and wellness company, bringing together brands like Kimberly-Clark’s Huggies and Kleenex with Kenvue’s Tylenol and Band-Aid.
It operates through three segments. The Personal Care segment offers a diverse range of products, including:
- Disposable diapers
- Swim pants, training and youth pants, baby wipes
- Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names, showcase the company’s resilience and adaptability
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brands Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and others.
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
Argus has a Buy rating with a $120 target price.
PepsiCo
This top consumer staples stock reported surprisingly solid third-quarter earnings and will continue to supply all the goods for holiday parties while paying a solid 3.82% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company with products split roughly 60-40 between food and beverage revenue. It is also balanced geographically between the U.S. and the rest of the world, providing diversification and stability.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
Piper Sandler has an Overweight rating with a $161 price objective.
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