When the economy gets shaky, many investors turn to reliable, dividend-paying stocks that have proven they can weather tough times and keep growing.
The S&P 500 Dividend Aristocrats Index is a great place to look for these kinds of opportunities since it includes companies that have raised their dividends for at least 25 years straight. Among these, S&P Global (SPGI) and West Pharmaceutical Services (WST) stand out as strong picks.
Both SPGI and WST offer what investors value most during uncertain times: consistent dividend growth and a strong presence in industries that are always in demand. Let us explore their strengths further and uncover why these two Dividend Aristocrats are great options for stability and growth right now.
Dividend Aristocrat #1: S&P Global (SPGI)
S&P Global (SPGI) is a company that helps businesses and institutions make sense of financial data. It provides credit ratings, market benchmarks, analytics, and other tools that simplify complex information.
Over the last year, SPGI’s stock has risen 10%, showing its ability to hold steady in a tough market, though it’s down just over 6% for the year to date.
SPGI’s annual dividend yield of 0.83% and an impressive 53-year streak of increasing dividends make it especially attractive for investors who value steady income. With a payout ratio of just 20.01%, the company has plenty of room to continue rewarding shareholders while fueling growth.
In Q4 2024, SPGI reported a 14% jump in revenue to $3.592 billion, with adjusted earnings per share (EPS) up 20% to $3.77. For the full year, revenue reached $14.208 billion, which was also up 14%, driven by strong performance in its Ratings division. Looking ahead, SPGI expects revenue growth of 5%-7% for 2025 and adjusted EPS between $17.00 and $17.25, supported by dividends and share buybacks.
Analysts are optimistic about SPGI’s future, with all 23 surveyed giving it a consensus “Strong Buy” rating and an average price target of $599.83, suggesting significant growth potential of 28% from its current price.
Dividend Aristocrat #2: West Pharmaceutical Services (WST)
West Pharmaceutical Services (WST) is a company that makes essential products for delivering injectable medicines, like stoppers, seals, and self-injection devices. It works with pharmaceutical and biotech companies around the world to ensure safe and effective drug delivery.
Over the past year, WST’s stock has dropped 45.6%, and it’s down 35.7% so far this year.
The company maintains a dividend yield of 0.4% with a conservative payout ratio of 11.9%, increasing its dividend for 32 consecutive years, reflecting its focus on steady growth and financial stability over time.
In Q4 2024, WST reported $748.8 million in sales, up 2.3% from the previous year, though adjusted earnings per share (EPS) dipped slightly to $1.82. For the full year, sales fell by 1.9% to $2.893 billion, and adjusted EPS dropped 16.5% to $6.75 due to issues like currency volatility and inventory adjustments. Looking ahead to 2025, WST expects modest growth with projected sales between $2.875 billion and $2.905 billion and adjusted EPS of $6.00 to $6.20.
Analysts remain optimistic despite recent struggles, with all 11 surveyed giving WST a “Strong Buy” consensus rating and an average price target of $298.33, suggesting significant upside of 41% from its current price.
The Bottom Line
Ultimately, when uncertainty looms over the markets, Dividend Aristocrats like S&P Global and West Pharmaceutical Services shine as reliable anchors for long-term investors. Their proven track records of consistent dividend growth, robust business models, and forward-looking strategies make them ideal picks for navigating volatility. Whether it's SPGI’s financial intelligence innovations or WST’s healthcare advancements, these companies exemplify stability and resilience, qualities that matter most when the future feels uncertain.
