Investors in search of high-income stocks might find appealing options among Dividend Aristocrats, as suggested by Wolf Research. Dividend Aristocrats are those companies that have raised their dividends consistently for the last 25 years. Analyst Chris Seniec noted on Tuesday that these stocks are currently trading at a historically low price-to-earnings ratio of approximately 0.83 times that of the S&P 500, with a dividend yield around 2.5%. He pointed out that their underwhelming performance is largely due to the group’s defensive stance. The most significant sector allocations are in consumer staples, industrials, and financials, with technology comprising only about 3%.
While Seniec tends to favor defensive strategies, he acknowledged that this dividend-focused approach is relevant in any market condition. Consequently, he and his team compiled a list of 30 Dividend Aristocrat stocks that match two additional criteria of his: achieving high dividend growth or yield.
A few noteworthy stocks include Becton Dickinson, which has a dividend yield of 2.19% but has seen a 16% decline this year. Although its profit for the fourth quarter exceeded expectations, revenue didn’t meet the forecasts. Becton Dickinson, which faced scrutiny from activist investor Starboard earlier in the year, revealed that laboratory equipment firm Waters would be acquiring a part of its biosciences and diagnostics operations. The average analyst rating for this stock is “overweight,” indicating an expected upside of 3.7% based on the average price target.
Another company, Abbott Laboratories, also carries an “overweight” rating from analysts. FactSet suggests that it has a potential upside of 15.4%. Abbott recently reported underwhelming third-quarter results, but announced plans in November to acquire Exact Sciences, known for the cancer test Cologuard. This acquisition, valued at up to $23 billion, represents one of Abbott’s major moves in almost a decade, set to finalize in the second quarter of 2026. CEO Robert B. Ford expressed confidence in the merger, highlighting the strong brand and innovation of Exact Sciences. Abbott’s stock boasts a dividend yield of 1.84%, an increase of 11% since the start of the year.
Finally, General Dynamics has seen a 27% increase year-to-date with a dividend yield of 1.81%. In October, defense and aerospace sectors raised their profit projections for the year. The company’s third-quarter earnings and revenue also surpassed Wall Street’s expectations. CEO Febe Novakovic remarked that all four of their segments showed growth in earnings and backlog, driven by strong demand and execution. The aerospace sector, in particular, performed robustly, with revenues up 30.3% year-over-year and earnings rising significantly. Analysts maintain an average rating of “overweight” for General Dynamics, predicting a 14.5% upside based on their average price targets.
