Investors are worried about the U.S. economy. 

Consumer confidence dropped sharply in February, and key measures like the Purchasing Managers’ Index (PMI) for the U.S. services sector have slipped into contraction.

As a result, investors are turning to stable, dividend-paying stocks with a strong history of performing well even during tough times. Inflation is slowly easing in many major economies, but it remains higher than central banks aim for. This environment makes Dividend Aristocrats particularly appealing. 

According to analyst consensus, S&P Global (SPGI), West Pharmaceutical Services (WST), and Coca-Cola (KO) are currently the highest-rated Dividend Aristocrats. These are S&P 500 ($SPX) companies that have raised their dividends for at least 25 years straight. Let’s examine these three stocks and see what they have to offer.

Dividend Aristocrat #1: S&P Global (SPGI)

S&P Global (SPGI) provides financial services and business information, helping organizations make sense of data to drive decisions in global markets. The company pays an annual dividend of $3.84 per share, giving it a yield of 0.78%. 

SPGI has increased its dividend for 52 consecutive years, showing a strong commitment to rewarding shareholders. Recently, it raised its quarterly dividend by 5.5% to $0.96 per share, making it even more attractive for income-focused investors.

In addition to its dividend growth, SPGI announced a major share repurchase program worth up to $4.3 billion, with an initial $650 million accelerated buyback planned. This move highlights the company’s focus on returning value to shareholders through dividends and stock buybacks.

SPGI’s stock has performed well. It has gained 15% over the past 52 weeks, reflecting confidence in its financial strength and market positioning. 

The company has a market capitalization of about $153 billion and trades at a price-earnings (P/E) ratio of 30x, which is higher than industry averages. This indicates that investors are willing to pay a premium for its consistent performance.

The company’s Q4 2024 earnings report showed strong results, with revenue rising 14% year-over-year to $3.592 billion and adjusted earnings per share (EPS) increasing by 20% to $3.77. Growth was driven by solid performance in its Ratings and Indices segments. 

For 2025, SPGI expects revenue growth of 5% to 7% and adjusted EPS between $17 and $17.25. 

Analysts remain highly optimistic about SPGI’s outlook, with a “Strong Buy” consensus rating. The average price target is $612.50, suggesting potential upside of about 25% from its current price.

Dividend Aristocrat Stock #2: West Pharmaceutical Services (WST)

West Pharmaceutical Services (WST) focuses on making containment and drug delivery systems for injectable medicines, working with pharmaceutical, biologic, and healthcare companies worldwide. 

The company pays an annual dividend of $0.84 per share, yielding 0.37%, with a low payout ratio of 12%, showing it has plenty of room to reinvest in growth. WST has increased its dividend for 33 years in a row, earning its place as a reliable Dividend Aristocrat.

Despite its strong business model, WST’s stock has struggled recently. The stock is down nearly 37% over the past 52 weeks.

Its price-earnings (P/E) ratio is 36.2x, which is higher than its fair value estimate, suggesting it might be overvalued compared to its earnings potential. The company has a market capitalization of $16.7 billion.

In its Q4 2024 earnings report released on Feb. 13, 2025, WST posted net sales of $748.8 million, up 2.3% year-over-year, with organic growth at 3.3%. Adjusted diluted EPS came in at $1.82, slightly above expectations but down from the prior year due to destocking impacts and currency challenges. 

For 2025, WST expects net sales between $2.875 billion and $2.905 billion and adjusted EPS in the range of $6 to $6.20. Analysts are optimistic about the stock’s recovery, with a consensus “Strong Buy” rating and an average price target of $296.11, implying potential upside of about 30%.

Dividend Aristocat #3: Coca-Cola (KO)

Coca-Cola (KO) is a global leader in the beverage industry, selling its products in over 200 countries. Its diverse portfolio includes well-known brands like Coca-Cola, Sprite, and Fanta. KO is famous for consistently increasing its dividend, having done so for 63 years straight. 

Recently, it raised its quarterly dividend by 5.2%, from 48.5 cents to 51 cents per share, making the annual dividend $2.04 per share. This gives KO a dividend yield of about 2.8%, making it a standout among dividend stocks.

KO stock is up 22% over the past 52 weeks and nearly 17% in the year to date. 

With a market capitalization of $307.2 billion, KO’s forward P/E ratio is 23.8x, slightly above the sector average.

Coca-Cola’s Q4 2024 earnings report, released on Feb. 11, 2025, showed strong results. Net revenues rose by 6% to $11.5 billion. Earnings per share increased by 12% to $0.51, with comparable EPS also rising by 12% to $0.55. These results highlight the company’s ability to deliver growth despite external pressures.

For 2025, KO expects organic revenue growth of 5% to 6%, with comparable EPS growth projected at 2% to 3%. Analysts are optimistic about KO’s future, with a consensus “Strong Buy” rating and an average price target of $76.36, suggesting potential upside of about 6% from its current price.

The Bottom Line

If you’re looking for reliable passive income, S&P Global (SPGI), West Pharmaceutical Services (WST), and Coca-Cola (KO) stand out as top-rated Dividend Aristocrats. With strong dividend growth, robust financials, and analyst confidence, these three stocks offer a blend of stability and long-term potential. Whether it’s SPGI’s market leadership, WST’s innovation in healthcare, or KO’s global brand power, they each bring unique strengths to the table. These are must-consider picks for any income-focused portfolio in 2025.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.