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Build a Stronger 2026 Portfolio With These 5 Dividend Aristocrats
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Key Takeaways
Five dividend aristocrats are highlighted as reliable stocks for 2026 amid volatile macro conditions.
ATO and MDT extend dividend streaks, supported by natural gas demand and healthcare portfolio expansion.
PepsiCo logged its 53rd annual dividend hike in 2025, reflecting resilient global brands.
Investors seeking to build a strong portfolio with steady income and long-term wealth creation would benefit from adding dividend aristocrat stocks.
Dividend aristocrats are companies that have hiked dividends for at least 25 consecutive years, demonstrating robust financial discipline and commitment to shareholders. These firms have delivered increasing returns to shareholders amid recessions, interest rate changes and volatile macroeconomic factors.
As 2026 approaches, volatility, increasing geopolitical tensions and an uneven macroeconomic recovery remain key concerns. Amid such uncertainty, dividend aristocrats remain a must-have for investors looking for stability. Dividend aristocrat stocks generally act as a hedge against economic uncertainty and offer downside protection with a consistent increase in payouts. These stocks can serve as anchors within a diversified portfolio.
Here we present five dividend aristocrats — Atmos Energy Corporation (ATO - Free Report) , Medtronic plc (MDT - Free Report) , PepsiCo, Inc. (PEP - Free Report) , Caterpillar Inc. (CAT - Free Report) and S&P Global Inc. (SPGI - Free Report) . These offer robust dividend growth, tough business models and steady returns, making them smart picks for 2026
5 Dividend Aristocrats for Your Portfolio
Atmos Energy Corporation is engaged in the regulated natural gas distribution and storage business. The company has raised its annual dividend for 42 consecutive years and paid its 168th consecutive quarterly dividend. Currently, its quarterly dividend is $1 per share. Atmos Energy has an annual dividend yield of 2.38% with a five-year annualized dividend growth rate of 8.3%.
The company is gaining from higher demand for natural gas and an expanding customer base. The new dividend for fiscal 2026 is $4 per share, which represents a nearly 15% increase from the fiscal 2025 level.
For investors seeking a defensive core holding with dependable income growth, ATO, which carries a Zacks Rank #2 (Buy), is one of the most reliable utilities in the aristocrat universe.
Medtronic specializes in healthcare technology solutions. The company currently generates revenues from four major segments, namely Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio and Diabetes.
MDT has increased its dividend for 48 consecutive years. The current quarterly dividend stands at 71 cents, with the last hike in May 2025. Currently, it has an annual dividend yield of 2.84% with a payout ratio of 50% and a five-year annualized dividend growth rate of 4.29%.
Medtronic, which carries a Zacks Rank #3 (Hold), is expanding its global foothold within the company’s Cardiovascular business while its Hypertension business and Neuroscience portfolio are picking up momentum. Nonetheless, the company is navigating near-term pressures such as supply-related disruptions and tariff-related uncertainties.
PepsiCo is one of the leading global food and beverage companies serving customers across 200 countries and territories. Its complementary brands/businesses include Mountain Dew, Gatorade, Lay's, Doritos, Cheetos and Quaker.
In 2025, PepsiCo hiked its annualized dividend by 5%, raising it to $5.69 per share. This marked its 53rd consecutive annual dividend increase. It has paid cash dividends since 1965.
In 2025, PEP, which carries a Zacks Rank #3, plans to return $8.6 billion to shareholders, comprising $7.6 billion in dividends and $1 billion in buybacks. Currently, it has an annual dividend yield of 3.78% with a payout ratio of 72% and a five-year annualized dividend growth rate of 7.65%.
Caterpillar is one of the biggest players in the global construction and mining equipment manufacturing space. It has a long record of quarterly dividend payments since 1933 and has raised dividends for the past 32 consecutive years.
In June 2025, CAT announced a 7% hike in its quarterly dividend to $1.51 per share. In the third quarter of 2025, the company returned around $1.1 billion to shareholders as dividends and share repurchases. Currently, it has an annual dividend yield of 1.01% with a payout ratio of 32% and a five-year annualized dividend growth rate of 8.21%.
CAT, another Zacks Rank #3 company, expects the Machinery, Energy & Transportation (ME&T) segment free cash flow in 2025 to be above the midpoint of its target of $5-$10 billion.
S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
The company has hiked its dividend annually for more than 50 years and has been paying dividends since 1937. In January 2025, the quarterly dividend was increased to 96 cents, with the annualized dividend being $3.84 per share. It paid $1.1 billion in dividends in 2024. It has a dividend yield of 0.77% with a payout ratio of 22% and a five-year dividend growth rate of 6.31%.
SPGI, which carries a Zacks Rank #3, remains appealing to dividend-seeking investors. The company’s strong margin and free cash flow generation position reinforce its commitment to shareholder distributions. In the last reported quarter, the adjusted operating profit margin was 52.1%, up 330 basis points from the year-ago reported figure. Free cash flow was $1.4 billion.
Image: Bigstock
Build a Stronger 2026 Portfolio With These 5 Dividend Aristocrats
Key Takeaways
Investors seeking to build a strong portfolio with steady income and long-term wealth creation would benefit from adding dividend aristocrat stocks.
Dividend aristocrats are companies that have hiked dividends for at least 25 consecutive years, demonstrating robust financial discipline and commitment to shareholders. These firms have delivered increasing returns to shareholders amid recessions, interest rate changes and volatile macroeconomic factors.
As 2026 approaches, volatility, increasing geopolitical tensions and an uneven macroeconomic recovery remain key concerns. Amid such uncertainty, dividend aristocrats remain a must-have for investors looking for stability. Dividend aristocrat stocks generally act as a hedge against economic uncertainty and offer downside protection with a consistent increase in payouts. These stocks can serve as anchors within a diversified portfolio.
Here we present five dividend aristocrats — Atmos Energy Corporation (ATO - Free Report) , Medtronic plc (MDT - Free Report) , PepsiCo, Inc. (PEP - Free Report) , Caterpillar Inc. (CAT - Free Report) and S&P Global Inc. (SPGI - Free Report) . These offer robust dividend growth, tough business models and steady returns, making them smart picks for 2026
5 Dividend Aristocrats for Your Portfolio
Atmos Energy Corporation is engaged in the regulated natural gas distribution and storage business. The company has raised its annual dividend for 42 consecutive years and paid its 168th consecutive quarterly dividend. Currently, its quarterly dividend is $1 per share. Atmos Energy has an annual dividend yield of 2.38% with a five-year annualized dividend growth rate of 8.3%.
The company is gaining from higher demand for natural gas and an expanding customer base. The new dividend for fiscal 2026 is $4 per share, which represents a nearly 15% increase from the fiscal 2025 level.
For investors seeking a defensive core holding with dependable income growth, ATO, which carries a Zacks Rank #2 (Buy), is one of the most reliable utilities in the aristocrat universe.
Atmos Energy Corporation Dividend Yield (TTM)
Atmos Energy Corporation dividend-yield-ttm | Atmos Energy Corporation Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic specializes in healthcare technology solutions. The company currently generates revenues from four major segments, namely Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio and Diabetes.
MDT has increased its dividend for 48 consecutive years. The current quarterly dividend stands at 71 cents, with the last hike in May 2025. Currently, it has an annual dividend yield of 2.84% with a payout ratio of 50% and a five-year annualized dividend growth rate of 4.29%.
Medtronic, which carries a Zacks Rank #3 (Hold), is expanding its global foothold within the company’s Cardiovascular business while its Hypertension business and Neuroscience portfolio are picking up momentum. Nonetheless, the company is navigating near-term pressures such as supply-related disruptions and tariff-related uncertainties.
Medtronic PLC Dividend Yield (TTM)
Medtronic PLC dividend-yield-ttm | Medtronic PLC Quote
PepsiCo is one of the leading global food and beverage companies serving customers across 200 countries and territories. Its complementary brands/businesses include Mountain Dew, Gatorade, Lay's, Doritos, Cheetos and Quaker.
In 2025, PepsiCo hiked its annualized dividend by 5%, raising it to $5.69 per share. This marked its 53rd consecutive annual dividend increase. It has paid cash dividends since 1965.
In 2025, PEP, which carries a Zacks Rank #3, plans to return $8.6 billion to shareholders, comprising $7.6 billion in dividends and $1 billion in buybacks. Currently, it has an annual dividend yield of 3.78% with a payout ratio of 72% and a five-year annualized dividend growth rate of 7.65%.
PepsiCo, Inc. Dividend Yield (TTM)
PepsiCo, Inc. dividend-yield-ttm | PepsiCo, Inc. Quote
Caterpillar is one of the biggest players in the global construction and mining equipment manufacturing space. It has a long record of quarterly dividend payments since 1933 and has raised dividends for the past 32 consecutive years.
In June 2025, CAT announced a 7% hike in its quarterly dividend to $1.51 per share. In the third quarter of 2025, the company returned around $1.1 billion to shareholders as dividends and share repurchases. Currently, it has an annual dividend yield of 1.01% with a payout ratio of 32% and a five-year annualized dividend growth rate of 8.21%.
CAT, another Zacks Rank #3 company, expects the Machinery, Energy & Transportation (ME&T) segment free cash flow in 2025 to be above the midpoint of its target of $5-$10 billion.
Caterpillar Inc. Dividend Yield (TTM)
Caterpillar Inc. dividend-yield-ttm | Caterpillar Inc. Quote
S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
The company has hiked its dividend annually for more than 50 years and has been paying dividends since 1937. In January 2025, the quarterly dividend was increased to 96 cents, with the annualized dividend being $3.84 per share. It paid $1.1 billion in dividends in 2024. It has a dividend yield of 0.77% with a payout ratio of 22% and a five-year dividend growth rate of 6.31%.
SPGI, which carries a Zacks Rank #3, remains appealing to dividend-seeking investors. The company’s strong margin and free cash flow generation position reinforce its commitment to shareholder distributions. In the last reported quarter, the adjusted operating profit margin was 52.1%, up 330 basis points from the year-ago reported figure. Free cash flow was $1.4 billion.
S&P Global Inc. Dividend Yield (TTM)
S&P Global Inc. dividend-yield-ttm | S&P Global Inc. Quote