The Dividend Aristocrats are a group of stocks in the S&P 500 Index with over 25 consecutive years of dividend increases. These high-quality businesses have managed recessions and various crises, while continuing to reward shareholders with dividend raises each year.
As a result, the Dividend Aristocrats are among the best dividend stocks to buy and hold for the long run.
The following 3 Dividend Aristocrats have dividend yields well above the S&P 500 average, and durable competitive advantages to continue raising their dividends in the years to come.
PepsiCo Inc (NASDAQ:PEP)
PepsiCo is a global food and beverage company that generates almost $94 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. The company has more than 20 $1 billion brands in its portfolio.
On February 3rd, 2026, PepsiCo announced that it would increase its annualized dividend by 4.0% to $5.92 starting with the payment that was made in June 2026, extending the company’s dividend growth streak to 54 consecutive years.
That same day, PepsiCo released fourth quarter and full year results for the period ending December 31st, 2025. For the quarter, revenue grew 5.6% to $29.3 billion, which beat estimates by $370 million. Adjusted earnings-per-share of $2.26 compared favorably to $1.96 the prior year, which was $0.02 more than expected.
For the year, revenue grew 2.3% to $93.9 billion while adjusted earnings-per-share of $8.14 was down from $8.16 in 2024. Organic sales grew 2.1% for the quarter and 1.7% for the year.
For the quarter, food volume fell 2% while beverages grew 1%. PepsiCo Beverages North America’s organic revenue improved 2% for the period even as volume decreased by 4%.
PepsiCo provided guidance for 2026 as well, with the company expecting organic sales in a range of 2% to 4%. The company expects earnings-per-share growth in a range of 4% to 6%.
PEP has increased its dividend for 54 consecutive years.
Automatic Data Processing Inc (NASDAQ:ADP)
Automatic Data Processing is one of the largest business services outsourcing companies in the world. The company provides payroll services, human resources technology, and other business operations to more than 700,000 corporate customers.
ADP posted second quarter earnings on January 28th, 2026, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share came to $2.62, which was a nickel ahead of estimates, and was up from $2.49 in Q1, and from $2.35 in the year-ago period.
Revenue was up 7.2% year-over-year to $5.36 billion, beating estimates by $20 million. Expenses came to $4.08 billion, which was higher from $3.98 billion in Q1 and $3.88 billion a year earlier. Adjusted EBIT margin was 26.0% of revenue, up from 25.5% in Q1 and from 25.2% a year ago. The company guided for revenue growth of 6% for this year, adjusted EBIT margin of ~60 basis points, and adjusted diluted earnings-per-share growth of 9% to 10%.
Automatic Data Processing has compounded its adjusted earnings-per-share at a rate of more than 13% per year over the last decade. Looking forward, we believe the company is capable of delivering 9% annualized growth in earnings-per-share over full economic cycles.
Much of this growth is likely to be driven by the company’s Professional Employer Organization (PEO) Services segment, which continues to deliver very impressive revenue growth. Importantly, this revenue growth has been accompanied by meaningful margin expansion, which means that the segment’s growth has had an outsized impact on the firm’s bottom line.
ADP has increased its dividend for 51 years in a row.
Caterpillar Inc (NYSE:CAT)
Caterpillar is the most prominent manufacturer of construction and mining equipment in the world, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company operates in three primary segments: Construction Industries, Resource Industries and Energy & Transportation, along with ancillary financing and related services through its Financial Products segment.
On January 29th, 2026, Caterpillar announced its Q4 and full-year results for the period ending December 31st, 2025. Revenue reached a single-quarter record of $19.1 billion, an 18% increase compared to last year. The Construction Industries segment posted a 15% year-over-year sales increase to $6.92 billion, driven by higher equipment volumes and dealer inventory changes.
The Resource Industries segment saw sales rise 13% to $3.35 billion, primarily due to higher sales volume. Segment profit decreased 24% to $360 million, as margins were pressured by rising tariff-related manufacturing costs and production expenses. The Energy & Transportation division led growth with sales rising 23% to $9.4 billion, fueled by record demand in power generation for AI data centers. Profit in this segment increased 25% to $1.84 billion, benefiting from strong volume and favorable pricing.
Caterpillar’s adjusted operating profit margin was 15.6%, down from 18.3% last year. Despite margin compression and significant tariff headwinds, adjusted earnings-per-share rose to $5.16, compared to $5.14 last year. For the year, adjusted EPS was $19.06.
Caterpillar is one of the largest players in the markets it addresses, with a brand that is well-known and recognized around the globe. The fact that Caterpillar has a global presence and is selling its products to several industries (construction, mining, etc.) makes it less dependent on any single market.
CAT has increased its dividend for 32 consecutive years.
Disclosure: No positions in any stocks mentioned
