12 Dividend Aristocrats That Pay Royally

Inflation is not only eating away at the spending power of your daily dollar but also hammering your investments in the stock market. The temptation may be there to sell off and get out, but there's another way to wait out this downturn.

You can help blunt the effects of inflation with dividend-paying stocks. Along with the passive income they generate, they tend to hold up better in inflationary environments.

And you can go one step further by focusing on Dividend Aristocrats -- that group of S&P 500 companies that have raised their dividends for at least 25 years in a row. Here are 12 companies to consider from that exclusive club of 66 stocks.

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Dover Corporation (NYSE:DOV) -- along with the next, perhaps more familiar entry in this list -- has raised its dividend for 66 straight years. Dover is a manufacturer of engineered products in the clean energy, imaging, pumps, and processes fields. Its stock currently pays $0.50 per share per quarter, giving it a yield of about 1.5% at a share price of about $136.25.

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Procter & Gamble (NYSE:PG) has also raised its payout for 66 straight years. This consumer home products giant is currently paying a quarterly dividend of $0.9133 per share, good for a yield of about 2.34% at a share price of about $156.31.

International Business Machines (NYSE:IBM) had the highest yield among the 66 Dividend Aristocrats at this writing, paying at a rate of about 4.96% based on a share price of about $134.34 and a quarterly dividend of $1.65. Big Blue has raised its dividend for 28 straight years and now provides hardware, software, and consulting services, with operations in nearly every country on the planet.

3M Company (NYSE:MMM) makes tapes, film, abrasives, and other products for home and industry -- and it makes a lot of money. 3M has raised its dividend for 65 straight years and is now yielding about 4.13% at a share price of about $150.54 and a payout of $1.49 per share per quarter. That's a good way to secure some passive income.

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Walgreens Boots Alliance (NASDAQ:WBA) is the parent corporation of the Walgreens and Boots drugstore chains, with several pharmaceutical manufacturing and distribution subsidiaries thrown in. After 46 consecutive years of dividend increases, this stock is yielding about 4.46% from a quarterly dividend of $0.4775 and a share price of about $42.86.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Cardinal Health (NYSE:CAH) is a multinational healthcare services company specializing in distributing pharmaceuticals and medical products. This Dividend Aristocrat has raised its payout for 35 straight years and is now paying $0.4908 per quarter, good for a yield of about 3.38% at a share price of about $59.48.

ALSO READ: Investing in Healthcare Stocks

VF Corporation (NYSE:VFC) may not be a household name, but many of its clothing brands are, including The North Face, Vans, and Dickies. The company went public as Vanity Fair Mills in 1951 and, after 48 straight years of dividend increases, is now yielding about 3.89% at a share price of about $51.44 and a quarterly payout of $0.50.

Federal Realty Trust (NYSE:FRT) is a real estate investment trust (REIT), which means it must pay out at least 90% of its taxable income as dividends to shareholders. No problem. This owner of mostly upscale shopping centers has raised its dividend for 54 straight years and is currently yielding about 3.66% at a share price of about $118.86 and a dividend of $1.07 per share per quarter.

ALSO READ: Real Estate Investment Trusts: What They Are and How to Invest in Them

Realty Income (NYSE:O) is a retail REIT and a recent addition to the Dividend Aristocrat list, although it's paid monthly dividends, without fail, for more than 50 years. This owner of more than 11,000 retail locations is currently yielding about 4.27% from a share price of about $67.70 and monthly payout of $0.2470.

ALSO READ: Investing in Retail REITs

Lowe's Companies (NYSE:LOW) has been a builders' destination for professionals and do-it-yourselfers for decades as the company built its own impressive record of 47 consecutive years of dividend increases. Lowe's stock currently trades for about $201.61 a share, yielding about 1.62% from a quarterly dividend of $0.80.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Franklin Resources (NYSE:BEN) is the multinational holding company that owns Franklin Templeton, the investment management firm that now has about $1.4 trillion in assets under management. BEN's dividend has grown each year for 41 years and is now rewarding shareholders about 4.72% in yield at a quarterly dividend of $0.29 per share and a share price of about $25.34.

ALSO READ: How to Invest in Dividend Stocks

Chevron (NYSE:CVX) has been a Dividend Aristocrat for a decade now and, after 35 straight years of dividend increases, is now paying $1.42 per quarter per share. The energy giant's stock is now trading at about $164.40 a share and yielding about 3.63%.

While the dividend hikes are often very small, and there’s no guarantee the dividends or their growth will continue, it’s also reasonable to assume that no self-respecting CEO wants to be the one under whose watch that streak came to an end. Combine that with the underlying strength of each of these diverse enterprises, and you have good candidates for a long-term buy and hold.

Marc Rapport has positions in 3M. The Motley Fool recommends 3M and Lowe's. The Motley Fool has a disclosure policy.