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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- Lease Agreement Signed: Chevron, through its four Dutch subsidiaries, has signed lease agreements with the Hellenic Republic to explore four offshore blocks south of Crete and in the Peloponnese, holding a 70% operating interest, indicating its strategic intent to expand in the Mediterranean region.
- Exploration Potential Assessment: Under the agreements, the consortium will conduct 2D and 3D seismic exploration in the first phase to assess hydrocarbon potential, laying the groundwork for future energy supplies and enhancing Chevron's resource base.
- Market Position Enhancement: This collaboration not only solidifies Chevron's market position in the Mediterranean but also complements its existing gas field assets in Israel and Cyprus, expected to drive long-term growth and investment returns in the region.
- Strategic Partnership: The partnership with HELLENiQ ENERGY will facilitate technology and resource sharing, enhancing both companies' competitiveness in emerging markets while potentially providing economic benefits and job opportunities for the Greek government.
- Dividend Stock Advantages: According to Ned Davis Research, from 1973 to 2024, dividend growers and payers have an average annual total return of 10.24%, significantly outperforming non-payers at 4.31%, highlighting the compelling nature of dividend stocks for long-term investment.
- Microsoft's Growth Potential: Microsoft (MSFT) has averaged a 24% annual gain over the past decade, and despite a 17% decline year-to-date, its dividend yield has risen to 0.9%, with annual dividends increasing from $1.89 in 2019 to $3.64 in 2023, reflecting strong profitability and ongoing shareholder returns.
- Medtronic's Stable Returns: Medtronic (MDT) has raised its dividend by an average of 6% annually over the past decade and has increased its dividend for 48 consecutive years, currently yielding 2.8%, while its second-quarter revenue rose 7% year-over-year, demonstrating robust performance in the medical device sector.
- ETF Investment Opportunity: The Schwab U.S. Dividend Equity ETF (SCHD) offers a 3.5% dividend yield and tracks the Dow Jones U.S. Dividend 100 Index, which includes 100 stocks that have paid dividends for at least 10 years, with a low annual fee of just 0.06%, providing investors with a cost-effective diversified investment option.
- New Exploration Opportunities: Chevron has signed lease agreements with Greece, securing exploration rights for four offshore blocks in South Crete and the Peloponnese, holding a 70% operating interest, which underscores its strategic intent to expand in the Mediterranean region.
- Technological Edge: The agreements mandate 2D and 3D seismic exploration work in the first phase to assess hydrocarbon potential, leveraging Chevron's expertise in global oil and gas project development to advance new energy supplies.
- Market Outlook: This collaboration not only strengthens Chevron's market position in the Mediterranean but also complements its existing gas field assets in Israel and Cyprus, further solidifying its business footprint in the region.
- Policy Support: The lease agreements are subject to ratification by the Greek Parliament, reflecting the Greek government's welcoming stance towards foreign investment in the energy sector, potentially laying the groundwork for more international collaborations in the future.

- Chevron Corporation's Stake: Chevron holds a 70% operating interest in a consortium focused on energy projects.
- Hellenic Energy's Stake: Hellenic Energy has a 30% interest in the same awarded consortium.

Chevron and Helleniq Energy Partnership: Chevron Corp and Helleniq Energy have signed lease agreements to collaborate on energy projects in Greece.
Focus on Dutch Subsidiaries: The agreements involve Chevron's Dutch subsidiaries, indicating a strategic expansion in the European energy market.
- Diversified Portfolio: Berkshire Hathaway boasts over 60 subsidiaries across various sectors, including insurance, energy, construction, manufacturing, railroads, and dining, making its diversification comparable to some exchange-traded funds (ETFs).
- Indirect Stock Holdings: By owning shares of Berkshire, investors can indirectly hold positions in five other stocks, including Apple, Alphabet (Google's parent), Amazon, Chevron, and Mastercard, thereby achieving broader market exposure.
- Strong Long-term Prospects: Berkshire's portfolio also includes companies like American Express, Coca-Cola, and Visa, which have solid long-term growth potential, enhancing its investment appeal.
- Management Stability: Although Warren Buffett is no longer CEO, he remains confident in the company's future and believes that under Greg Abel's leadership, Berkshire's prospects will improve, demonstrating the stability of its governance and potential for continued growth.








