3 Dividend Aristocrats to Buy That Could Beat the Market Over the Next 10 Years

Nobility isn't necessarily all it's cracked up to be. That's definitely the case with the nobility of dividend stocks -- Dividend Aristocrats. These members of the S&P 500 have increased their dividends for at least 25 consecutive years. But they aren't always the biggest winners for investors.

Over the past three-year, five-year, and 10-year periods, the S&P 500 has outperformed Dividend Aristocrats. However, there are some great dividend payers that look especially promising over the long term. Here are three Dividend Aristocrats to buy that could beat the market over the next 10 years.

1. AbbVie 

AbbVie (ABBV -4.61%) isn't just a Dividend Aristocrat; it's also a Dividend King. The company's track record of 50 consecutive years of dividend increases puts it in that exclusive group.

The big drugmaker's attractive dividend yield of nearly 4.2% definitely boosts its total returns. AbbVie hasn't depended only on its dividends to reward investors in recent years, though. The stock has trounced the broader market and continues to do so, so far in 2022.

You might think that the loss of exclusivity for Humira next year could put AbbVie at a disadvantage. There's no question that declining sales for its top-selling drug will negatively impact the company. However, AbbVie expects that newer autoimmune-disease drugs Rinvoq and Skyrizi will generate combined peak sales that eclipse Humira's peak sales.

The company looks for solid growth throughout this decade after taking an expected temporary hit in 2023. With AbbVie's shares trading below 9.8 times expected earnings, this stock could easily be a market-beater over the next 10 years.

2. Air Products & Chemicals

Air Products & Chemicals (APD 0.57%) has increased its dividend for 40 consecutive years. Its dividend yield of nearly 2.5% is well above the average S&P 500 yield of a little under 1.5%.

Even with this advantage, Air Products hasn't always been able to deliver a higher total return than the S&P 500. So far this year, though, the stock is narrowly outperforming the key market index.

Air Products' leadership in producing industrial gases should enable it to generate stronger earnings growth than the average S&P 500 member going forward. The company's adjusted earnings per share (EPS) have increased by a compound annual growth rate of 11% since 2014. Air Products looks for adjusted EPS growth of 13% to 15% this year. 

Arguably the most promising growth area for Air Products is in producing green hydrogen (made from renewable energy) and blue hydrogen (made from natural gas using carbon capture). The company already ranks as the largest hydrogen producer in the world and expects to be the leader in green and blue hydrogen in the future.

3. Lowe's

Lowe's (LOW 0.47%) isn't far away from becoming a Dividend King. The home improvement retailer has increased its dividend for 48 consecutive years. Its dividend yield currently tops 2%.

After soaring in 2020 and 2021, Lowe's shares have plunged more than 20% year to date. Investors have been concerned about the negative impacts of inflation and the possibility of a recession on the company.

However, Lowe's CEO Marvin Ellison thinks that higher interest rates could actually work in his company's favor. Ellison said in Lowe's second-quarter conference call, "As low housing supply and high interest rates make moving less desirable, homeowners are motivated to invest in their current homes to fit their needs."

Another factor could also help Lowe's over the next 10 years and beyond. More than 50% of U.S. homes are now over 40 years old. Houses built in the early years of this century at the peak of the housing boom are beginning to hit the 20-year mark. As a result, spending on home improvement is likely to increase throughout the rest of this decade. Lowe's stands to be a key beneficiary of this trend.