Investors looking for the highest-quality dividend growth stocks to buy and hold for the long term should consider the Dividend Aristocrats.
These stocks represent an exclusive group of just 69 companies in the S&P 500 Index, which have each raised their dividends for at least 25 consecutive years.
The Dividend Aristocrats represent attractive long-term investments, because they possess durable competitive advantages that allow them to generate steady growth even through recessions.
In turn, this gives them the ability to grow their dividends each year.
This article will outline 3 of the best Dividend Aristocrats right now.
Dividend Aristocrat: Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson is one of the largest U.S. healthcare companies in the world by market capitalization, with a market capitalization above $300 billion. Its massive size is the result of years of steady growth, and a diversified business model with huge businesses across the healthcare spectrum.
J&J has enormous platforms in medical devices and pharmaceuticals, with a leadership position in each category. The company was founded in 1886 and employs nearly 138,000 people around the world. It is projected to generate more than $90 billion in revenue this year.
Johnson & Johnson reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue grew 2.3% to $21.9 billion, which beat the average analyst estimates by $330 million. Adjusted earnings-per-share of $2.77 compared to $2.71 in the prior year and was $0.19 higher than expected. Results included adjustments related to the costs of acquisitions.
Revenue for Innovative Medicines improved 2.3% on a reported basis, but increased 4.2% when excluding currency translation. Infectious Disease decreased 2.2% on a reported basis, mostly due to reduced Covid-19 vaccine revenue. Oncology grew 17.9% due to ongoing high demand for Darzalex, which treats multiple myeloma, and strong showings in several other products. Immunology declined 12.7%.
Revenue for MedTech increased 2.5% on a reported basis and 4.1% when excluding the impact of currency exchange. Cardiovascular continues to post strong results, as sales were higher by 16.4%.
The company should generate long-term growth, thanks largely to its impressive pharmaceutical pipeline. Its large product pipeline is the result of organic growth, as well as significant acquisitions. For example, on January 13th, 2025, the company announced that it had agreed to acquire Intra-Cellular Therapies (ITCI) for $14.6 billion. ITCI specializes in therapeutics for central nervous system disorders.
Johnson & Johnson offered revised guidance for 2025 as well. The company now expects revenue in a range of $91.6 billion to $92.4 billion for the year, up from $90.9 billion to $91.7 billion previously. Adjusted earnings-per-share are now projected to be in a range of $10.50 to $10.70.
Steady revenue and profits have allowed J&J to raise its dividend each year for decades on end. On April 15th, 2025, Johnson & Johnson announced that it was increasing its quarterly dividend by 4.8% to $1.30, extending the company’s dividend growth streak to 63 consecutive years.
Dividend Aristocrat: Sysco Corporation (NYSE:SYY)
Sysco Corporation is the largest wholesale food distributor in the United States and is expanding internationally. The company was founded in Houston, Texas, in 1969 and now serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities. According to estimates, the company has a 16% market share of total food delivery within the United States.
Sysco has continued to generate steady growth in 2025, even in an uncertain economic climate. On April 29th, 2025, Sysco reported third-quarter results for Fiscal Year (FY)2025. The company reported sales of $19.6 billion, up 1.1% from Q3 2024. Adjusted EPS remained flat at $0.96. U.S. Foodservice sales rose 0.7% to $13.8 billion. Adjusted operating income increased 17.4% to $128 million, driven by effective margin management.
Sysco revised its FY25 guidance, projecting 3% sales growth and at least 1% adjusted EPS growth. The company’s strong cash flow allows it to return significant amounts of cash to shareholders. In the most recent quarter, Sysco returned $1.5 billion to shareholders via repurchases and dividends.
Sysco has grown earnings by 16.8% annually over the past five years and earnings growth of 9.9% over the past nine years. Through acquisitions, organic growth, and share buybacks, Sysco has consistently grown earnings-per-share. The company is also in the process of cutting overhead costs, which should mildly boost bottom-line growth.
Sysco has an economic moat due to its large-scale and entrenched distribution infrastructure, which gives it a cost advantage over most competitors. This moat is evidenced by the company’s double-digit returns on invested capital every year, much higher than its weighted average capital cost. I
t’s also quite defensive; the company was almost unfazed by the previous recession and recovered from a mild earnings dip within one year. Thanks to this stability, Sysco has raised its dividend every year since it went public.
Dividend Aristocrat: Fastenal Co. (NASDAQ:FAST)
Fastenal provides fasteners, tools and supplies to its customers via 1,587 public branches, 2,502 active Onsite locations and 129,996 managed inventory devices.
In mid-April, Fastenal reported (4/11/25) results for the first quarter of 2025. It grew its sales 3% over the prior year’s quarter thanks to growth in Onsite locations and improved customer contract signings. Earnings-per-share remained flat at $0.52, in line with the analysts’ consensus.
Fastenal has missed the analysts’ estimates only twice in the last 22 quarters. It posted record earnings-per-share in 2022 and 2023 and remained close to its record earnings last year, as an increase in Onsite locations almost offset the effect of a soft manufacturing environment.
Fastenal has grown its earnings-per-share at a 9.4% average annual rate over the last decade and at a 7.7% average annual rate over the last five years. This has been driven by a variety of factors, including sales more than doubling, an improvement in margins and tax reform. Fastenal is in the midst of a transformation from the traditional public branches leading the business to Onsite locations and managed inventory (mostly vending devices) heading the growth story.
Fastenal has a first mover competitive advantage in its industrial vending and Onsite locations, creating a very sticky and well-attuned customer relationship with high switching costs. Moreover, its scale allows the company to continue its growth path, adjust to business preferences and reliably deliver needed goods.
On January 16th, 2025, Fastenal raised its quarterly dividend by 10%, from $0.39 to $0.43. The company has increased its dividend for 27 consecutive years.
Disclosure: The author has no positions in any stocks mentioned