
The stock market appears to be in a period of uncertainty. Many analysts are starting to wave red flags as inflation risks arise as the Fed paused rate cuts as its first official act in 2025, while others are beginning to worry about the impact of President Trump’s new set of tariff threats on the market.
Seasoned investors will see this as a sign to veer away from speculation and focus on the long term. Dividend Aristocrats—mature, stable, S&P 500 listed companies that have consistently paid increasing dividends for over 25 years—can be excellent investments during these uncertain times.
So, today, I analyzed the Dividend Aristocrats lists to see which offer a well-balanced measure of stability and excellent yields.
How I Came Up With The Following Stocks
I used Barchart’s Stock Screener tool for this analysis, starting with the following criteria:
- 60-Month Beta: 0.50 to 1.00 (Medium). Beta is used to measure the volatility of a specific stock against market indices like the S&P 500 based on how much the stock’s price will move relative to the index. So, if the S&P were to increase by $1, a stock with 0.50 beta is expected to increase by $0.50. The lower the beta, the less volatile the stock is. However, excessively low-beta stocks might not move as much when the S&P 500 enters another bull run. So, choosing your preferred beta is essentially a balancing act between volatility and future performance. For this analysis, I decided to set the values between 0.50 and 1.00, so we have relatively stable companies that can still grow alongside the index as it recovers.
- Current Analyst Rating: 4.0 (Moderate Buy) to 5.0 (Strong Buy). Analyst ratings tell us what Wall Street thinks about the stock’s performance in the next 12 months. The higher the rating, the better the outlook, so I’ll limit the results to only the top 20%.
- Annual Dividend Yield: 2.75% (High) and above.
- Watchlist: Dividend Aristocrats.
With those filters set, I ran the screen and got five results:
So, I arranged the list from highest to lowest dividend yield, took the top three, and let’s discuss each of them in turn.
Amcor Plc (AMCR)
60-Month Beta: 0.84
Amcor plc is a global packaging company that designs and produces flexible and rigid packaging solutions for food, beverage, pharmaceutical, medical, and other consumer goods industries. The company strongly focuses on sustainability and responsible production, with 94% of its manufactured packaging products fully reusable and/or recyclable by the end of 2024. That’s a big plus for ESG investors.
Dividend investors, meanwhile, will find plenty of reasons to like the stock. The company currently pays 12.75 cents quarterly, reflecting a 51-cent annual rate and an above-average 5.23% yield based on current prices.
AbbVie Inc (ABBV)
60-Month Beta: 0.58
AbbVie is a global biopharmaceutical company that develops medicine in the immunology, oncology, neuroscience, and eye care fields. Spun off from Abbot Laboratories in 2013, AbbVie has grown into a valuable player in the healthcare space. The company’s portfolio includes Humira, Rinvoq, and Skyrizi, treatments acquired through its merger with Allergan in 2020, and over 90 more compounds, devices, and drugs in its pipeline.
AbbVie’s last financial statement (Q3 2024) had a welcome surprise to dividend investors: the company is increasing its quarterly payouts by 5.8% to $1.64 per share for 2025. This reflects an annual dividend of $6.56 and a 3.73% yield.
Exxon Mobil Corp (XOM)
60-Month Beta: 0.91
Exxon Mobil is a global energy giant specializing in exploring, producing, refining, and distributing oil, natural gas, and petroleum products. With a significant international presence and a frequent member of various “Top Oil and Energy Companies Worldwide,” Exxon operates under its Exxon, Mobil, Esso, and XTO brands, offering fuel, lubricants, and energy solutions.
Exxon’s latest dividend payment came with an increase—99 cents per share from 95 cents per share previously. This translates to a $3.96 annual rate and a decent 3.61% yield.
Final Thoughts
It’s no secret that we’re heading for a rough 2025. While there’s nothing retail investors like you and I can do about sweeping financial policies and increasing inflation, what we can do is protect ourselves from the shock of a turbulent market. These Dividend Aristocrats offer safety and assured income in equal measure, allowing you to earn while weathering the storm and—hopefully—get rewarded with increasing returns when the bull market comes around again.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.