Predictable and reliable investments yielding up to 6.5% returns: these are the future Dividend Aristocrats
In the world of dividend investing, a select group of companies stand out for their consistent and long-term dividend growth. Known as Dividend Aristocrats, these companies have demonstrated an impressive track record of increasing their dividends for at least 25 consecutive years. As of July 2025, there are about 69 Dividend Aristocrats, including well-known names like Coca-Cola, Walmart, and IBM.
Among the companies that might achieve this prestigious status in the future are Edison International, Verizon, and Evergy.
Edison International, one of the largest energy suppliers in the US, particularly in the state of California, is already recognized as a Dividend King, having increased its dividends for more than 50 years. However, it may not yet meet all the criteria to become a Dividend Aristocrat, as it is not currently a member of the S&P 500 or may not have the required trading volume.
Evergy, on the other hand, is a company whose dividend payout history indicates it is on its way to becoming a Dividend Aristocrat. With 21 consecutive payout increases, Evergy requires only one more year to meet the 25-year requirement. Its dividend yield currently stands at 4.6%.
Verizon, a major player in the telecommunications sector, is projected to achieve the status of Dividend Aristocrat in five years, having increased its payout for 20 consecutive years. With a high dividend yield of 6.5%, Verizon's undervalued status as a moat stock, as revealed by Morningstar, could make it a compelling investment opportunity.
Despite using various forms of energy, including coal, uranium, solar, and wind, Verizon's business model offers a stable and attractive cash flow through contracts. In contrast, Evergy primarily focuses on power production in the US.
It can be worthwhile to look at the values that are likely to achieve the status of Dividend Aristocrat in the future. Edison International, with its 3.8% dividend yield and potential future Aristocrat status, could become a dividend aristocrat if it meets the other criteria, including S&P 500 membership and trading volume.
In summary, Edison International, Evergy, and Verizon are companies to watch in the dividend investing world. Their strong dividend growth and potential to meet the criteria for Dividend Aristocrat status make them exciting investments for income-focused investors.
[1] S&P Dow Jones Indices. (2021). S&P 500 Dividend Aristocrats. Retrieved from https://us.spindices.com/indices/equity/sp-500-dividend-aristocrats [2] Morningstar. (2021). Dividend Aristocrats. Retrieved from https://www.morningstar.com/uk/funds/tool/diva/diva.html [3] The BÖRSE ONLINE Global Dividend Stars Index. (n.d.). Retrieved from https://www.borsen-online.de/index/dividend-stars-index/
Investing in the future Dividend Aristocrats, such as Edison International, Verizon, and Evergy, could provide substantial returns for income-focused investors. For instance, Verizon, with a 6.5% dividend yield and a projected Dividend Aristocrat status in five years, may present an undervalued investment opportunity due to its moat status as revealed by Morningstar.
