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Dividend Aristocrats Passing the Strategies of Legends

Dividend Aristocrats Passing the Strategies of Legends

Posted September 5, 2025 at 10:30 am

Validea Capital Management

The S&P 500 Dividend Aristocrats comprise a select group of fewer than 70 companies that have consistently increased their dividend payments for at least 25 consecutive years across various industry sectors.

This remarkable track record of uninterrupted dividend increases reflects robust earnings performance sustained over multiple decades. These corporations have weathered diverse market cycles while maintaining their commitment to higher payouts, highlighting their ability to generate steady cash flows and make sound capital allocation decisions. While some stocks may currently provide higher dividend yields, Dividend Aristocrats typically offer growing income streams that have historically kept pace with or outpaced inflation.

During market volatility, these stocks generally exhibit less dramatic price fluctuations than the broader S&P 500 index. Most maintain conservative debt levels and generate substantial free cash flow, allowing them to preserve dividend payments even when economic conditions deteriorate.

The 25-year dividend increase criterion acts as an effective screening mechanism, identifying companies with durable business models and strong market positions. This benchmark naturally excludes younger companies and firms operating in unstable sectors that struggle to achieve steady dividend growth. Investment professionals commonly include these stocks in income-focused portfolios due to their established track record of payments, though past performance doesn’t guarantee future dividend increases or price gains.

Below are the leading 10 Dividend Aristocrats for September of 2025, ranked according to Validea’s investment models that emulate the approaches of legendary investors including Warren Buffett, Peter Lynch, and Benjamin Graham.


TickerCompany NamePriceMarket Cap
($mil)
PE
Ratio
Price/
Sales
Relative
Strength
Price/
Book
Price/
Cash Flow
Dividend
Yield
XOMEXXON MOBIL CORP$114.69$488,95216.31.5491.98.63.4%
GWWWW GRAINGER INC$1,016.86$48,63925.72.85913.321.60.8%
CVXCHEVRON CORP$161.83$331,33020.91.8641.910.54.1%
CBCHUBB LTD$276.81$110,36212.21.9491.611.31.3%
ITWILLINOIS TOOL WORKS INC$262.26$76,44923.04.85923.820.32.8%
ADPAUTOMATIC DATA PROCESSING INC$299.77$121,42030.05.96419.626.22.0%
JNJJOHNSON & JOHNSON$178.06$428,82919.14.7625.514.22.8%
WMTWALMART INC$97.85$780,14436.91.1758.722.00.9%
PEPPEPSICO INC$150.28$205,74527.42.24011.217.83.7%
PGPROCTER & GAMBLE CO$157.99$369,77324.34.4447.219.92.6%

Originally Posted September 3, 2025 – Dividend Aristocrats Passing the Strategies of Legends

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