The Dividend Aristocrats should be treated as royalty after having raised their dividends consistently for at least two and a half decades. Indeed, over a quarter of a century timespan, some market turmoil is bound to be experienced.

Whether we’re talking about the 2000 tech bust, the Great Financial Crisis (GFC) of 2008, or the 2020 pandemic stock market crash, the market’s top dividend growers have been through a lot, persevering by raising their dividend payments each time, as most others were pressured to cut theirs in half or in whole.

With stock markets heating up into mid-October, investors should gear up for volatility as we head closer to Halloween. Indeed, your average stock may be slightly overbought this autumn. However, that doesn’t necessarily mean they’re overdue for a painful pullback.

After all, the Federal Reserve is in rate-cut mode now. As they continue cutting, the price of admission into top dividend stocks (like the Aristocrats) could go up markedly as their yields fall off, even with annual dividend hikes considered.

Either way, here are two top Dividend Aristocrats worth buying this month.

Key Points About This Article

• Dividend Aristocrats are worth buying as they begin to pick up speed.
• Defensive blue-chip dividend growers like Walmart and Coca-Cola look like worthy buys for October 2024.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Walmart

Walmart (NYSE:WMT) is a traditional retailer that has successfully adapted to the digital age. As the company embraces artificial intelligence (AI) to remove inefficiencies across the board while continuing to bolster its grocery-delivery business and e-commerce presence, the stock’s impressive rally could easily continue. As the company takes more market share from competing grocers while embracing money-saving technological innovations, I do see a scenario where sales and margins can expand further.

Despite the tailwinds and track record of exceptional performance, WMT stock is not cheap at more than 41 times trailing price-to-earnings (P/E). Undoubtedly, there’s been a lot of margin expansion, but they mostly seem warranted, given how much the fundamentals and longer-term narrative have improved.

After soaring over 50% year to date, shares are close to the hottest they’ve ever been. Michael Lasser, a UBS analyst, is just one of many pros who are staying bullish on the name despite the glorious ascent.

Despite the price tag, I think you have to stick with the Dividend Aristocrat on strength. It’s helped people save big money amid inflation and hard times. As times improve, Walmart can continue to offer unprecedented value, in my opinion, all while the firm enhances the quality of its goods and services.

Coca-Cola

Coca-Cola (NYSE:KO) is a long-time Warren Buffett stock that the Oracle of Omaha just refuses to sell. As a core staple in the Berkshire Hathaway (NYSE:BRK-B) portfolio that can make it through recessions or worse, there are really no good reasons to ditch KO stock, even after a solid run.

Over the past year, KO shares have surged more than 31%. After demonstrating pricing power amid inflation and economic rumbles, Coke continues to demonstrate the power of its brand, which some may have discounted amid consumers’ push towards healthier, less-sugary beverages.

Even after experiencing a strong summer, I think KO is worth paying for. At 28.3 times trailing P/E, the stock isn’t as cheap as it could be. And the yield, 2.8%, isn’t as high as it was more than a year ago. Either way, Coke is a solid company that could keep fizzing for investors as it explores intriguing new products (think Oreo-flavored Coke) to keep consumers buying.

Finally, if the soft landing for the economy that the market has seemed to price in ends up being a hard one, KO stock may just be one of the safe haven stocks that more people reach for.

So, given the remote but realistic recession risks for the next few years, KO stock is not a name one should scratch off their radars. The Dividend Aristocrat can help keep your portfolio afloat if the AI trade goes up in smoke and there’s a big rush to the defensive dividend stocks.

When it comes to dividend-paying defensives, Coke is the gold standard. Just ask the great Warren Buffett!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.