3 Best Dividend Aristocrats to Buy in 2026

Core Insights - The market is experiencing mixed signals as it approaches 2026, with stretched valuations and increased investor caution, highlighting the importance of companies that provide steady and increasing income at reasonable valuations [1] Dividend Aristocrats - Dividend Aristocrats are S&P 500 companies that have raised their dividends for at least 25 consecutive years, representing resilient businesses with strong cash flows and a commitment to rewarding shareholders [2] Investment Opportunities - While Dividend Aristocrats are often perceived as boring in terms of yield and price appreciation, they become attractive investment opportunities when trading at favorable valuations and demonstrating earnings growth [3] Stock Screening Criteria - The selection of stocks was based on specific filters, including a P/E ratio between 10 to 20, EPS growth of 10% or higher, a minimum of 12 analysts covering the stock, and analyst ratings between 3.5 (Moderate Buy) and 5 (Strong Buy) [4][5] Company Spotlight: Federal Realty Investment Trust (FRT) - Federal Realty Investment Trust focuses on managing retail properties and generating revenue through leasing residential spaces, positioning itself as a leader in real estate investment trusts [6][7] - The company reported a basic EPS growth of approximately 22%, increasing from $2.80 to $3.42 per share, and has a P/E ratio of 14.32, which is below the sector average of 18.16, indicating potential undervaluation [8] - Federal Realty offers a forward annual dividend of $4.52, resulting in a yield of around 4.44%, making it appealing for income-focused investors [8]