Dividends are cash expenses for a company. So, when a company can continue to pay shareholders more year in and year out, it's generally a strong indication of a business with consistent growth and durable competitive advantages.
The Dividend Aristocrats® represent S&P 500 companies that have raised their dividends for at least 25 consecutive years (the term Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC).
Here are three Dividend Aristocrats® that exhibit the growth opportunities and strong financials to double their dividends over the long term.
These are stocks you may want to buy and hold.
Image source: Getty Images.
1. S&P Global
S&P Global (SPGI +0.55%), the parent company of what once was Standard & Poor's, is at the core of the financial sector. It offers a wide range of financial data and analytics services, including its role as a central authority on bond ratings. The company has built a reputation since its founding in the 1800s, creating a brand moat that investors worldwide trust.
NYSE: SPGI
Key Data Points
Debt is the oxygen that keeps the global economy alive, and financial markets seldom sleep. As a result, S&P Global continuously produces stable, highly profitable revenue that translates into clockwork-like dividends. The company has gone beyond being a Dividend Aristocrat®, becoming a Dividend King with 51 consecutive annual dividend hikes.
But even with decades of increases to its name, there's room for more. The stock's dividend payout ratio is still just 22% of S&P Global's 2025 earnings estimates. As the world continues to borrow money, analysts see S&P Global growing its earnings per share (EPS) by 11% annually over the next three to five years. That positions the stock's dividend to double over the next six to seven years at that pace.
2. Aflac
No insurance product covers all your needs. Aflac (AFL +0.39%) has built a very successful company by filling in those gaps for its customers. Aflac sells supplementary insurance products, including policies covering accidents, cancer, short-term disability, and life insurance. Aflac operates in the United States and Japan, and is known for its famous duck mascot.
NYSE: AFL
Key Data Points
Insurance is all about gauging risk. Aflac's dividend track record is a testament to the company's policy-underwriting skill. You don't increase your dividend for 43 consecutive years if you suffer catastrophic losses. Aflac is profitable enough that it can raise its dividend and still spend enough to buy back stock, lowering its share count by a whopping 38% over the past decade.
There's probably more where this all came from. Aflac's dividend payout ratio is modest at just under 33% of estimated 2025 earnings, and analysts predict the business will grow earnings at an annualized rate of 5% moving forward. Investors are looking at the dividend potentially doubling over the next 14 to 15 years, while those buybacks help boost the share price along the way.
3. Chubb Limited
Chubb Limited (CB +0.67%) is one of the world's largest insurance companies. It operates in over 50 countries and sells a range of insurance products, including personal and commercial property, accident, supplemental health, and life insurance. The company dates back to the 1880s, so it has been in business for a very long time and has built a reputation across the insurance industry.
NYSE: CB
Key Data Points
It has also become a Warren Buffett stock after Berkshire Hathaway opened a stake in Chubb back in late 2023, steadily building it into one of its core holdings, now worth over $9.2 billion. Buffett loves dividend stocks, and Chubb certainly fits that bill. The company has raised its dividend for 31 consecutive years.
Chubb Limited is a slow-and-steady stock; analysts see the company growing earnings at an annualized rate of just over 4% over the next three to five years. That would double the dividend after roughly 18 years. However, the dividend payout ratio is only 16% of 2025 earnings estimates, so management has room to raise the dividend faster if it chooses.
