3 Dividend Aristocrats to Buy and Hold for Decades

The U.S. presidential elections are pivotal, influencing the stock market's stability. With elections around the corner, investors may want to focus on dividend stocks to weather volatility. Companies such as Target Corporation (TGT), Kimberly-Clark Corporation (KMB), and Genuine Parts Company (GPC) offer steady income, making them ideal for passive earnings.

This election season might create the most uncertainty since 2000. Prolonged uncertainty could pose significant risks to equity markets, industrial commodity prices, business investment, and consumer confidence, ultimately destabilizing the broader U.S. economy. Such unpredictability could result in substantial market volatility.

Last week, U.S. equity markets surged to new record highs. This increase was due to easing inflationary pressures, as shown in the September Consumer Price Index (CPI) and Producer Price Index (PPI) reports. The market responded positively to these signs of decreasing year-on-year inflation.

Year-on-year CPI inflation dropped from 2.5% to 2.4% in September, the slowest pace since February 2021. However, core CPI inflation, which excludes volatile food and energy prices, rose from 3.2% to 3.3%. This mixed inflation data signals ongoing concerns despite some relief in overall price growth.

Although inflation remains a key focus, it may not be the biggest risk facing financial markets. A more significant concern could be prolonged election outcome uncertainty. This scenario could shake investor confidence and introduce heightened volatility across sectors, overshadowing inflationary threats in the short term.

In such times, dividend growth stocks could offer stability through a consistent and growing income stream, making them ideal for investors seeking reliable cash flow. These stocks, typically issued by financially strong companies, provide both dividends and long-term growth potential, serving as a buffer against market volatility.

Considering the current volatile market trends, let us delve into the fundamentals of three dividend aristocrat stocks that have consistently increased their dividends for over 50 years. These stocks appear to be ideal candidates for long-term investment and hold the potential for sustained growth over the decades.

Stock #3: Target Corporation (TGT)

TGT is a retail giant offering everyday essentials and fashionable merchandise at discounted prices. With nearly 2,000 stores and its website, the company offers a wide assortment of general merchandise and food, including apparel, accessories, beauty, food, beverage, hardlines, and home furnishings.

On June 24, TGT partnered with Shopify Inc. (SHOP), a global e-commerce platform, to feature popular sellers and products on Target Plus, its curated digital marketplace. The alliance expands TGT’s offerings with new, trendy products and brands like True Classic and Caden Lane, providing consumers with more affordable, high-quality options.

On September 18, TGT’s board of directors announced a quarterly dividend of $1.12 per common share. The dividend is payable on December 10, 2024, to shareholders of record at the close of business on November 20, 2024. TGT has consecutively increased its dividends for 55 years.

It pays an annual dividend of $4.48, which translates to a 2.83% yield at the current price level. Moreover, the stock’s dividend payouts have increased at a CAGR of 14.6% over the past three years.

During the fiscal 2025 second quarter, which ended on August 3, 2024, TGT’s total revenue rose 2.7% year-over-year to $25.45 billion. Its operating income was $1.64 billion, up 36.6% over the prior-year quarter. The company’s net earnings and EPS stood at $1.19 billion and $2.57, respectively, representing increases of 42.8% and 42.8% year-over-year.

Analysts expect TGT’s revenue and EPS for the fiscal 2025 third quarter (ending October 2024) to increase 2.2% and 9.4% year-over-year to $25.96 billion and $2.30, respectively. Moreover, the company surpassed the consensus revenue and EPS estimates in three of four trailing quarters.

Shares of TGT have surged 11.6% over the past nine months and 45.4% over the past year to close the last trading session at $158.46.

TGT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

It has a B grade for Value, Momentum, and Quality. Within the A-rated Grocery/Big Box Retailers industry, TGT is ranked #10 out of 37 stocks.

To access additional grades for TGT’s Growth, Stability, and Sentiment, click here.

Stock #2: Kimberly-Clark Corporation (KMB)

KMB specializes in manufacturing and marketing products crafted from natural or synthetic fibers using advanced technologies in fibers, nonwovens, and absorbency. The company operates through three segments: Personal Care; Consumer Tissue; and K-C Professional.

On June 26, KMB’s Kimberly-Clark Professional™ unveiled the Kimtech™ Polaris™ Nitrile Exam Gloves, meeting the growing demand for advanced safety and comfort in laboratory settings. These gloves deliver top-notch protection and durability while offering ergonomic benefits that enhance user comfort and reduce injury risks.

Certified by U.S. Ergonomics, the Kimtech Polaris gloves are designed for diverse environments, including laboratories, industrial work, pharmaceutical manufacturing, medical device production, and biotechnology, showcasing KMB’s dedication to healthier and more efficient work solutions.

On August 1, KMB’s board of directors announced a regular quarterly dividend of $1.22 per share. The dividend was payable in cash on October 2, 2024, to stockholders of record at the close of business on September 6, 2024. KMB has increased its dividends for 51 consecutive years.

The stock’s annualized dividend of $4.88 per share translates to a dividend yield of 3.43% on the current share price. Its dividend payouts have increased at a CAGR of 3.4% over the past five years, and its four-year average dividend yield is 3.49%.

For the fiscal 2024 second quarter that ended June 30, KMB’s non-GAAP gross profit grew 6.2% year-over-year to $1.86 billion. Its non-GAAP operating profit increased 16.2% from the year-ago value to $845 million. In addition, non-GAAP net income attributable to KMB came in at $661 million and $1.96 per share, up 18.2% and 18.8% from the prior year’s quarter, respectively.

For the fiscal year ending in December 2025, Street expects KMB’s revenue to increase marginally year-over-year to $20.46 billion. Its EPS for the same period is expected to rise 4.8% year-over-year to $7.64. Also, the company surpassed consensus EPS estimates in three of the trailing four quarters.

KMB’s stock has surged 12.8% over the past six months and 19.2% over the past year to close the last trading session at $142.25.

KMB’s POWR Ratings reflect its robust prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

It has a B grade for Value, Sentiment, and Quality. Within the B-rated Consumer Goods industry, it is ranked #7 out of 58 stocks.

Click here to view KMB’s grades for Growth, Momentum, and Stability.

Stock #1: Genuine Parts Company (GPC)

GPC is a global service company that distributes automotive and industrial replacement parts. It operates in two segments: Automotive Parts Group and Industrial Parts Group. The company distributes automotive parts in North America, Europe, and Australasia, offering inventory, cataloging, marketing, and aftermarket programs.

On May 1, GPC announced the acquisition of Motor Parts & Equipment Corporation (MPEC), the largest independent owner of NAPA Auto Parts stores in the United States, for its U.S. Automotive business.

With the help of this acquisition, GPC has established a significant store presence for its distribution of automotive and industrial replacement parts all across the United States, making the company a significant player in the auto parts market.

On August 20, GPC’s board of directors announced a regular quarterly cash dividend of $1.00 per share on the company's common stock. The dividend was payable on October 1, 2024, to shareholders of record on September 6, 2024.

GPC pays an annual dividend of $4, which translates to a yield of 2.91% at the prevailing price levels. Its four-year average dividend yield is 2.56%. The company’s dividend payments have grown at a CAGR of 6.9% over the past three years. Additionally, the company has increased its dividends for 67 consecutive years.

GPC’s net sales for the fiscal 2024 second quarter, which ended on June 30, marginally increased year-over-year to $5.96 billion. Its gross profit rose 2.1% over the prior-year quarter to $2.18 billion. The company’s adjusted net income was reported at $341.56 million, and adjusted earnings per share at $2.44.

The consensus revenue of $23.50 billion for the fiscal year ending December 2025 reflects a rise of 1.8% year-over-year. Its EPS for the same period is expected to increase marginally year-over-year to $9.41. Furthermore, the company topped the consensus EPS estimates in three of the four trailing quarters.

Shares of GPC have gained 1.6% over the past month to close the last trading session at $137.24.

GPC’s POWR Ratings reflect its fundamentals. GPC has a B grade for Quality and Stability. It is ranked #33 out of 62 stocks in the A-rated Auto Parts industry.

In addition to the POWR Ratings highlighted above, one can access GPC’s ratings for Growth, Value, Sentiment, and Momentum here.

What To Do Next?

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TGT shares were unchanged in premarket trading Monday. Year-to-date, TGT has gained 14.66%, versus a 23.09% rise in the benchmark S&P 500 index during the same period.

Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.

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