15 Dividend Aristocrats That Won't Let You Down

When the market is down and uncertainty is everywhere, it's hard to find a better place to park your money than dividend stocks, especially Dividend Aristocrats.

Dividend Aristocrats are S&P 500 members that have increased their dividend every year for at least 25 years.

These stocks have proven their ability to keep paying investors in good times and bad, and they have business models that have stood the test of time.

If you're looking for dividend stocks that will keep paying you even in a recession, keep reading to see 15 worth buying now.

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PepsiCo (NASDAQ: PEP) is a longtime dividend champ, and it's easy to see why. The company owns a portfolio of food and beverage brands that customers demand in good times and bad. That includes not just its namesake beverage but also Gatorade, Quaker Oats, and Frito-Lay snacks.

PepsiCo is more than 100 years old, and the company has raised its dividend every year for 50 years. Today, it offers a dividend yield of 2.7%, and the company is coming off a strong earnings report after it beat expectations and raised its full-year guidance. That shows the company is having no problems in the current economic environment.

ALSO READ: Is Now the Right Time to Buy Pepsi Stock?

Walmart (NYSE: WMT) is the world's biggest retailer and the world's biggest company by revenue.

Thanks to its commitment to everyday low prices, the company also tends to outperform other retailers in a recession as consumers know they can count on Walmart for price savings.

That's one reason why the company is a Dividend Aristocrat, having hiked its dividend every year for 49 years. It now offers a dividend yield of 1.7%.

You may not be familiar with VF Corp (NYSE: VFC), but chances are you know its brands, including Vans, Timberland, North Face, Dickies, and Supreme.

The apparel and footwear holding company has been a strong performer on the stock market over its history, and it's also a Dividend Aristocrat, having raised its quarterly payout each year for 49 years.

The stock has plunged over the past year in the broader sell-off in apparel stocks and as the company recently cut its earnings guidance, but its dividend yield of 6.9% is too good to ignore. The company is targeting 15% operating margins by 2027, and it should return to bottom-line growth once the macroeconomic situation stabilizes.

Like other retailers, Target (NYSE: TGT) has struggled lately, but the discount on the stock price offers a good entry point for new investors.

Target has succeeded in differentiating itself from other retailers by investing in same-day fulfillment services, owned brands, and small-format stores.

The company has also raised its dividend for 50 years straight, and it gave investors two generous dividend increases during the pandemic. Investors can now enjoy a 3% dividend yield from a stock that should bounce back next year once its inventory levels stabilize.

ALSO READ: 3 Reasons to Buy Target Stock Right Now

Paint and coatings company Sherwin-Williams (NYSE: SHW) has been around for more than 100 years, and though it operates in a cyclical business as sales of paint are closely tied to the home-improvement and residential construction markets, it's managed to become a Dividend Aristocrat.

It has increased its dividend for 44 years in a row and now offers a dividend yield of 1.2%.

The company has also grown both organically and through acquisitions. For example, it just acquired Industria Chimica Adriatica, an Italian company that specializes in wood coatings.

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.

The grocery business is a great source of reliable dividends, and McCormick (NYSE: MKC) offers an excellent example. The company's spices and flavorings are found just about anywhere those products are sold, and it also supplies the spices for a number of supermarket private-label brands.

In other words, the company is the clear leader in its industry, and it has raised its dividend annually for the past 36 years. Its yield is now 2%.

With a streak of 66 years of raising its dividend, Procter & Gamble (NYSE: PG) is tied for the longest streak of any Dividend Aristocrat.

The household products company owns more than 20 billion-dollar brands, including Tide, Gillette, and Pampers -- exactly the kind of products that consumers buy regardless of the state of the economy.

P&G now offers a dividend yield of 2.9%, and its diversification and nearly 200-year history make it a good choice to ride out the pandemic.

ALSO READ: List of Dividend Aristocrats

Restaurants are typically thought of as consumer discretionary companies, which are sensitive to the economic cycle, but fast-food giant McDonald's (NYSE: MCD) has demonstrated its ability to raise its dividend in good times and bad.

McDonald's has raised its dividend for 45 years in a row and now offers a dividend yield of 2.5%.

The company has proven to be resilient through the pandemic, and it looks like a strong bet even if the economy sinks into a recession.

Utilities are one of the most stable investments around in the stock market, so it shouldn't be a surprise to find Consolidated Edison (NYSE: ED) on the list.

The New York-based electric company has been a steady grower thanks to rising rates and adding new homes, and it now offers a strong dividend yield of 3.9%.

Con Ed has raised its dividend for the past 48 years and should be little affected by a recession.

A Warren Buffett favorite, Coca-Cola (NYSE: KO) has all the makings of a classic dividend stock.

The company has been around for more than 100 years and has a timeless set of branded beverages led by its namesake. That's underpinned an acquisition strategy that's helped the company grow even as it competes in a mature market.

Coca-Cola has paid a dividend for 60 years running, and it currently offers a dividend yield of 3.2%.

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.

Healthcare giant Johnson & Johnson (NYSE: JNJ) is another textbook example of a stock that won't let you down in tough times.

Johnson & Johnson is one of only two American companies to get a AAA credit rating from the S&P. Microsoft is the other one, and it dates back to the 1800s.

Johnson & Johnson is also diversified in three business segments: consumer products, medical devices, and pharmaceuticals, though it's planning to spin off its consumer business under the name Kenvue.

The company has raised its dividend every year for 60 years, and it now pays a yield of 2.7%.

ALSO READ: Is Johnson & Johnson a Buy?

Colgate-Palmolive (NYSE: CL) is more than just toothpaste and soap, but those products show why the company is a top dividend stock. It competes in classic consumer staples categories, selling products consumers need in any kind of economy.

The company is more than 100 years old and continues to grow both organically and through acquisitions. It's raised its dividend 59 years in a row and offers a 2.6% dividend yield.

Lowe's (NYSE: LOW) might compete in the cyclical home-improvement industry, but the company benefits from being in a duopoly with Home Depot, and both companies enjoy high profit margins.

Even as the housing market pulls back, Lowe's should be able to continue raising its dividend even if it's just by modest amounts in a recession.

The company now pays a 2.2% yield and has raised its dividend for 48 years in a row.

Energy companies tend to be highly cyclical, but the high energy prices over the past year have given ExxonMobil (NYSE: XOM) a buffer to handle a crash in oil prices if that happens to come with a recession. In its most recent quarter, the company brought in $18 billion in profits, and it's on track to bring in $11 billion in the third quarter.

Its track record also shows its ability to pay dividends in any kind of economy as it's raised its dividend annually for the past 39 years. Its current dividend yield is 3.6%.

ALSO READ: ExxonMobil Sees Its Earnings Gusher Continuing

Genuine Parts Company (NYSE: GPC), the company better known as NAPA Auto Parts, has paid increasing dividends for 66 years, making it tied for tops on the list of Dividend Aristocrats.

Auto parts retailers tend to be recession-proof businesses since consumers avoid buying new cars and instead need to spend to maintain their current vehicles.

That should bode well for the NAPA parent in the event of a recession, and the company now offers a dividend yield of 2.3%.

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.

Bear markets also offer excellent opportunities to buy dividend stocks because yields rise as share prices fall.

If the Federal Reserve continues to crank up interest rates, stock prices could fall further, making dividend stocks especially appealing for income investors. If you're looking for reliable stocks to help ride out the volatile market, the list here is a good start.

Jeremy Bowman has positions in Target. The Motley Fool has positions in and recommends Home Depot, Microsoft, Target, and Walmart Inc. The Motley Fool recommends Johnson & Johnson, Lowe's, McCormick, and Sherwin-Williams and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.