4 Dividend Aristocrats Are Absolutely Crushing the S&P 500 in 2025

Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 − $20) / $20 = 13%. This combines the price appreciation and the dividend received. What if your dividend stocks were also outperforming the S&P 500 in a big way?

Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list:

• Companies must be worth at least $3 billion for each quarterly rebalancing.
• Their average daily volume must be at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date.
• They must be a member of the S&P 500.

We screened the 2025 Dividend Aristocrats to identify the companies outperforming the S&P 500, which is down 0.6% in 2025 as of this writing. The four top companies that may end up being total return home runs for 2025 are all crushing the venerable index, and still offer investors good entry points. In addition, all are rated Buy at the top firms we cover on Wall Street.

Why do we cover the Dividend Aristocrats?

S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names.

Abbott Laboratories

This healthcare giant presents an excellent investment opportunity for investors and is up about 20% in 2025. Abbott Laboratories Inc. (NYSE: ABT)  is engaged in the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products.

The company operates through four segments:

• Established Pharmaceutical Products
• Diagnostic Products
• Nutritional Products
• Medical Devices

The Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products.

The Diagnostic Products segment sells diagnostic systems and tests worldwide for blood banks, hospitals, commercial laboratories, and alternate-care testing sites.

The Nutritional Products segment is involved in the worldwide sales of a broad line of adult and pediatric nutritional products.

The Medical Devices segment includes the worldwide sales of:

• Rhythm management
• Electrophysiology
• Heart failure
• Vascular
• Structural heart
• Neuromodulation
• Diabetes care products

Stifel has a Buy rating on the shares with a $145 target price.

Cardinal Health

This Dividend Aristocrat is up a stellar 21% and is another healthcare-related stock that has done well this year. Cardinal Health Inc. (NYSE: CAH) is a global healthcare services and products company.

The company is engaged in providing customized solutions for:

• Hospitals
• Healthcare systems
• Pharmacies
• Ambulatory surgery centers
• Clinical laboratories
• Physician offices
• Patients in the home

The company also provides pharmaceuticals and medical products.

Cardinal Health segments include:

• Pharmaceutical and Specialty Solutions
• Global Medical Products and Distribution (GMPD)

The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals, and over-the-counter healthcare and consumer products in the United States.

Its GMPD segment manufactures, sources, and distributes Cardinal Health-branded medical, surgical, and laboratory products sold in the United States, Canada, Europe, Asia, and other markets.

The company connects patients, providers, payers, pharmacists, and manufacturers for integrated care coordination.

Morgan Stanley has an Overweight rating on the shares with a $166 target price.

Coca-Cola

Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. It remains a top long-time holding of Warren Buffett, who owns 400 million shares. Those shares are up a solid 16.18% in 2025. Coca-Cola is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16% of Monster Beverage, which continues to deliver big numbers.

UBS has a Buy rating and a $86 price objective.

Consolidated Edison

Consolidated Edison Inc. (NYSE: ED) is one of the largest investor-owned energy companies in the United States. This old-school utility stock offers income investors the stability and track record many seek now and is the Dividend Aristocrat with the largest 2025 gain, up about 20% this year. Consolidated Edison engages in the regulated electric, gas, and steam delivery businesses in the United States.

It offers:

• Electric services to approximately 3.6 million customers in New York City and Westchester County
• Gas to about 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County
• Steam to approximately 1,530 customers in parts of Manhattan

The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey and gas to about 0.1 million customers in southeastern New York.

In addition, it operates:

• 543 circuit miles of transmission lines
• 15 transmission substations
• 63 distribution substations
• 87,951 in-service line transformers
• 3,869 pole miles of overhead distribution lines
• 2,320 miles of underground distribution lines
• 4,359 miles of mains
• 377,741 service lines for natural gas distribution

Consolidated Edison owns, develops, and operates renewable and energy infrastructure projects, provides energy-related products and services to wholesale and retail customers, and invests in electric and gas transmission projects.

Citigroup has a Buy rating with a $120 target price.

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