It’s easy because every bit of data you need to make your choices is available 24/7 with a few taps on the screen. Ironically, it’s also difficult for the same reason. With so many datasets to consider and so little time, it’s hard to know which ones really matter. As a dividend growth investor, I try to cut through the noise and find what matters most, which are high-dividend stocks to buy and hold. For that, I like to look at the Dividend Aristocrats.
As a long-term investor, I like having a portfolio that allows me to have both income and capital appreciation. What makes the Dividend Aristocrats special is that they comprise high-quality companies that belong to the S&P 500 and have consistently grown their dividend payouts for at least 25 years. This is a testament to the company’s healthy business and commitment to giving back to its shareholders.
To screen for Dividend Aristocrats that long-term investors should consider at right now, I used the following criteria.
- Not a REIT: I excluded these stocks because they deserve a list of their own.
- Buy ratings from analysts: Wall Street sentiment can be a good indicator of the stock’s long-term performance.
After I got my results, I sorted them from highest to lowest dividend yields to reveal these three.
Chevron Corporation (CVX)
One of the U.S.’s largest energy corporations, Chevron Corporation (NYSE:CVX) specializes in oil, gas and renewable fuels. The company has upstream and downstream operations focused on the oil and gas industry. Oil companies are an interesting pick since the best ones are known for paying dividends, even in bad times.
Chevron has a 37-year history of increasing dividends and has consistently paid them since the 1990s, making it one of the best high-yield dividend stocks to buy and hold. The company pays a $6.52 forward dividend, translating to a 4.26% yield.
According to an update from its latest stockholder meeting, the company remains strong as it continues to drive operational performance. Its highlights include record production levels in 2023, which produced 3.1 million barrels of oil equivalent per day, nine consecutive quarters with adjusted earnings over $5 billion, and an adjusted ROCE above 12%.
Chevron emphasized that its financial priorities remain the same: efficient capital investment, returning excess cash to shareholders and growing its dividend. This is a compelling case for investors looking to strengthen their long-term portfolio.
CVX stock has a strong buy rating with excellent management committed to the business and giving value to its shareholders.
AbbVie (ABBV)
One of the largest biomedical companies in terms of revenue, AbbVie (NYSE:ABBV) is a top candidate for long-term investors’ retirement portfolios. Famous for its autoimmune drug Humira, the company now specializes in researching and manufacturing a variety of medicines and therapies for diseases with unmet needs in immunology, oncology, neuroscience and more.
Recently, AbbVie shared positive topline results from the phase 2 trial of ELAHERE, highlighting its safety consistent with previous studies. In addition, AbbVie acquired Landos Biopharma, which will help strengthen the company’s portfolio of standard care treatments.
AbbVie started the fiscal year on a strong footing. First quarter net revenues increased by 0.7% to $12.31 billion, driven by robust growth in the oncology and neuroscience portfolios. The oncology portfolio grew by 9.0%, with notable contributions from Imbruvica and Venclexta, while the neuroscience portfolio rose by 15.9%, led by Botox Therapeutic and Vraylar.
Despite a 4.0% decline in the aesthetics portfolio, AbbVie’s overall performance was strong. Diluted GAAP EPS came in at $0.77, up an eye-watering 492.3%.
The company currently pays an annual dividend of $6.20, translating to a yield of 3.65%, and AbbVie has continuously increased its dividend for 52 straight years. Additionally, analysts rate ABBV stock as a strong buy, a testament to its long-term income potential.
Medtronic (MDT)
Last but not least is a healthcare technology developer that addresses more than 70+ diseases. Medtronic (NYSE:MDT) is a medical equipment company that designs and manufactures treatments and therapies for diseases like chronic pain, diabetes, spinal disorders and heart failure.
Medtronic’s latest product, Inceptiv, has received Food and Drug Administration (FDA) approval. The drug treats chronic pain with its closed-loop rechargeable spinal cord stimulator (SCS). Also, the company announced positive results with Medtronic Affera and Ablation System with Sphere-9. It could potentially change the future of atrial fibrillation treatment. Additionally, with continued FDA approvals for products such as the Evolut FX+ TAVR system and the Inceptiv closed-loop spinal cord stimulator, the company is set to continue to grow.
The company ended fiscal year 2024 with great results from various business segments, such as Cardiac Pacing, Surgical, Diabetes, Cranial and Spinal Technologies, and Structural Heart. As a result, total global revenue increased by 3.6% year-over-year (YOY).
Additionally, Medtronic has increased payouts for 47 straight years, which is excellent news for investors looking for high-yield dividend stocks to buy and hold. MDT stock has a 3.45% forward annual yield, and has a combined buy rating from 27 analysts.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.