Many dividend stocks can be boring. They plod along, delivering only weak growth. Sometimes, their dividends aren't all that great, either.
These criticisms can even apply to the elite group of stocks known as Dividend Aristocrats. Twenty-five years or more of consecutive dividend increases doesn't automatically make a stock a great pick.
However, there are plenty of dividend stocks that are far from boring. Here are three Dividend Aristocrats set to win big from unstoppable trends.
1. Johnson & Johnson
Johnson & Johnson (JNJ +2.03%) isn't just a Dividend Aristocrat -- the healthcare giant is also a Dividend King (stocks with at least 50 consecutive years of dividend hikes). J&J has increased its dividend for a remarkable 60 years in a row.
NYSE: JNJ
Key Data Points
The company is in an excellent position to benefit from one of the most significant unstoppable trends around -- aging populations. The number of older individuals will increase dramatically in countries across the world over the coming decades.
This trend will almost certainly drive higher demand for healthcare products and services. Johnson & Johnson plans to spin off its consumer-health unit next year, but it will remain one of the biggest global players in pharmaceuticals and medical devices.
Sustained success in these two markets requires considerable financial resources to invest in continual research and development. J&J's large cash stockpile and strong revenue should enable the company to stay at the forefront of innovation. This could make Johnson & Johnson among the biggest winners from aging demographics.
2. Air Products & Chemicals
Air Products & Chemicals (APD +0.21%) has increased its dividend for 40 consecutive years. In 2022 alone, the company should return $1.4 billion to shareholders through its dividend program.
NYSE: APD
Key Data Points
What's the unstoppable trend that should help Air Products? Decarbonization. Countries and major corporations have set aggressive goals to reduce carbon emissions to help prevent major climate change. Increasing the use of hydrogen should play a key role in these efforts.
Air Products already ranks as the world leader in the production of gray hydrogen, which is derived from natural gas. The company is working hard to extend its leadership into low-carbon blue hydrogen and green hydrogen produced from renewable-energy sources.
There's ample reason to believe that Air Products will succeed with its blue hydrogen and green hydrogen initiatives. The company has over 60 years of experience producing hydrogen. It has both the expertise and the financial resources to become a top player in these emerging markets.
3. Lowe's
Lowe's (LOW +1.03%) has paid a dividend every quarter since the company went public in 1961. The home-improvement retailer also has an impressive track record of dividend increases.
NYSE: LOW
Key Data Points
CEO Marvin Ellison highlighted the unstoppable trend that should be a tailwind for Lowe's in the company's second-quarter conference call. Ellison noted, "More than half of the homes in the U.S. are over 40 years old and millions more built at the peak of the housing boom in the early 2000s are now starting to turn 20 years old, which is a key inflection point for big-ticket repairs."
With so many homes aging, the number of home-improvement projects should increase over the coming years. Of course, Americans will need the money to fund these projects. The good news on that front is that U.S. household wealth remains near record levels.
Lowe's operates nearly 2,200 home-improvement stores in the U.S. and Canada. It trails behind only Home Depot in this market. The company should easily rank as one of the biggest winners as U.S. homes age.
