Top 3 Dividend Aristocrat Stocks to Invest in Today, 10/28/2025
Importance of Dividend Aristocrats: Dividend aristocrats are companies that have increased their dividends for at least 25 consecutive years, and they are typically listed on the S&P 500 index. Identifying these companies is crucial for earning regular dividend income.
Top Dividend Aristocrat Picks: Analysts recommend three dividend aristocrat stocks: Federal Realty Investment Trust (FRT), Chevron Corporation (CVX), and Hormel Foods Corporation (HRL), all of which have high dividend payout ratios and positive growth potential.
Federal Realty Investment Trust (FRT): This Maryland-based REIT has a dividend payout ratio of 224.30%, a yield of 4.39%, and a Moderate Buy rating with an average price target suggesting over 11% growth.
Chevron Corporation (CVX) and Hormel Foods Corporation (HRL): Chevron has a payout ratio of 162.28% and a yield of 4.35%, while Hormel Foods has a payout ratio of 157.82% and a yield of 4.89%, both with Moderate Buy ratings and significant upside potential.
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- Oil Price Rebound: In January, WTI oil prices surged by 14% and Brent by 16%, marking the first monthly gain in six months, which propelled Chevron's stock to rise by 16.1%, significantly outperforming the S&P 500's 1.4% increase, indicating a positive impact on the company's profitability from rising oil prices.
- Supply Concerns Drive Prices: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges could disrupt oil flows from the country, coupled with escalating tensions with Iran, which further exacerbates market concerns over oil supply, thus driving prices higher.
- Strong Earnings Support: Chevron reported robust fourth-quarter results last month, with production volumes hitting record highs due to the Hess acquisition and expansion projects, leading to higher operating cash flow and industry-leading free cash flow growth, despite a decline in earnings compared to 2024.
- Ongoing Growth Strategy: Chevron made significant strides in its growth strategy, including completing the Hess acquisition, launching the Geismar renewable diesel plant, and making a Final Investment Decision on the Leviathan gas expansion project offshore Israel, expected to be completed by the end of the decade, enhancing its long-term growth outlook.
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.

Software Stock Slump: The recent decline in software stocks has raised concerns among investors, reflecting broader market volatility.
Bitcoin's Winter Meltdown: Bitcoin continues to experience significant downturns, contributing to a challenging environment for cryptocurrency investors.
Dollar's Ongoing Malaise: The U.S. dollar is facing persistent weakness, impacting global trade and investment strategies.
Memification of Precious Metals: Precious metals are becoming increasingly popular in meme culture, indicating a shift in how these assets are perceived and traded.
- Acquisition Exploration: Williams Companies is exploring the acquisition of natural gas production assets in the U.S., aiming to provide a one-stop energy solution for hyperscale data center clients, thereby enhancing its competitive edge in the energy infrastructure sector.
- Strategic Transformation: Over the past year, the company has positioned itself as a leader in supplying energy for artificial intelligence infrastructure, supplementing its traditional pipeline business with new power generation capabilities, which is expected to bolster future profitability.
- Major Investment Projects: The Socrates project in Ohio is set to come online in the second half of this year, generating 440 megawatts of power, with Meta Platforms signing a purchase agreement, highlighting its strategic importance in meeting data center power demands.
- Future Growth Targets: The company aims to grow its EBITDA at a rate of 5% to 7% annually, with analysts watching to see if it will raise this target at the upcoming analyst day, further driving long-term growth.
- Production Expansion: Exxon Mobil is expanding its production footprint in several OPEC-linked nations, with support from the Trump administration facilitating negotiations in Iraq, Libya, and Algeria, highlighting the positive impact of U.S. foreign policy.
- Competitive Advantage: Following U.S. sanctions on Venezuela, Exxon and Chevron are seizing opportunities in the country, potentially gaining an edge over European rivals like Shell and TotalEnergies, thereby strengthening their market position.
- Strong Stock Performance: Exxon Mobil's stock is currently trading 10.8% above its 20-day simple moving average and 24.4% above its 100-day moving average, with a 37.26% increase over the past 12 months, indicating a robust upward trend.
- Technical Indicator Analysis: Although the relative strength index (RSI) is at 75.02, suggesting an overbought condition and potential pullback risks, the MACD remains above its signal line, indicating sustained bullish momentum, prompting investors to be cautious of possible market corrections.
- Chevron Dividend Increase: Chevron recently announced a 4% increase in its quarterly dividend to $1.78 per share, yielding approximately 4.1%, extending its streak of consecutive annual increases to 39 years, which appeals to long-term investors.
- Strong Financial Performance: The company's cash flow from operations totaled $33.9 billion over the past year, up from $31.5 billion the previous year, demonstrating Chevron's ability to adapt and maintain financial strength under various economic conditions.
- Southern Company Dividend Raise: Southern Company announced a $0.02 increase in its quarterly dividend to $0.74, which, while a modest hike of under 3%, extends its dividend growth streak to 24 years, reflecting its stable earnings capacity.
- Stable Investment Choice: Serving 9 million customers, Southern Company boasts consistent demand for energy services, with profit margins typically exceeding 15%, and a low beta of 0.45 indicates low volatility, making it a solid option for retirees.










