Dividend payouts are slower this year as companies preserve their cash amid concerns of broader economic threats and tighter profit margins. Despite this trend, here are some stocks that have a long-term track record of growing their dividends that Wall Street analysts love. Global dividends will total just over $2 billion in 2023, completely flat with last year, according to a new report from S & P Global Market Intelligence. This the lowest growth rate in the last 10 years aside from the pandemic contraction in 2020, the new report from S & P notes. “Weak demand, low business confidence and a high interest rate environment are mounting downward pressure” on dividends, stated the report this week. CNBC PRO sought to find companies bucking that pressure. As a first step, we looked at companies that are in the S & P Dividend Aristocrats index. To make this elite benchmark, companies needed to show 25 years of consecutive dividend growth. We then searched that universe for stocks that are loved by analysts. We looked for stocks where at least 60% of the analysts on Wall Street recommend buying it and the consensus stock price target of those analysts calls for at least a 10% gain over the next 12 months. We used FactSet data for the search. Here are the five stocks that made the cut using those strict parameters: Global chemicals manufacturer Albemarle made the cut. Analysts project more than 30% upside from here and it pays nearly a 1% dividend. Albemarle, the world’s top producer of lithium, raised its full-year guidance due to an increase in lithium market prices last week. S & P Global is another name on the list. Shares of the capital markets company have dipped 1.3% on Tuesday but are up nearly 15% in 2023. S & P Global reported earnings in late July where its adjusted revenue beat the consensus and earnings per share of $3.12 came out in line with analysts’ expectations. The company also reaffirmed its full-year guidance, leaving investors optimistic about the stock. Utilities giant NextEra Energy and Industrial companies Emerson Electric and General Dynamics Corporation are other dividend aristocrats, each with a 25-year track record of paying dividends and majority positive ratings from analysts. NextEra Energy has a 30.4% upside from its average price target and a dividend yield of 2.7% — the highest on the list. The stock has lost more than 18% so far this year, however. Emerson Electric and General Dynamics have gained 5.7% and 0.5%, respectively, so far this month. For investors looking for dividend growth who do not want to bet on individual names, the ProShares S & P 500 Dividend Aristocrats ETF tracks the performance of the special S & P index. The ETF is up 6% this year.
