Dividend Aristocrats are some of the best stocks to buy when they go on sale, as they’re backed by companies on a solid footing. These companies have raised the dividends on their businesses each year for over a quarter of a century and are continuously cranking out cash for their shareholders.
This characteristic lets them snowball their dividends over long periods of time, and it’d be a mistake not to buy the dip when a quality Dividend Aristocrat has a hiccup. When you buy, hold, and reinvest their dividends and the stock eventually bounces back, you can often outperform the broader market with triple-digit returns.
Here are three dividend stocks that can make that happen.
FactSet Research (FDS)
FactSet Research (NYSE:FDS | FDS Price Prediction) has been a Wall Street mainstay, so much so that you’ve probably heard of it dozens times if you like to read quarterly reports posted by third-party publishers. What FactSet does is it provides financial information and analytics for hundreds of thousands of investors. Without it, many analysts would find themselves without the tools to value businesses.
This is a quality stock to hold, but FDS stock has declined sharply recently despite revenue of $596.9 million beating estimates and adjusted EPS of $4.05 barely missing estimates of $4.13.
The culprit was FactSet’s fiscal 2026 guidance. Wall Street expected $18.25 to $18.30 in EPS for FY 2026, but FactSet guided for $16.90 to $17.60. Similarly, operating margin guidance also missed expectations and led to a sharp selloff.
I’d buy the dip as this “terrible” margin compression is due to its aggressive AI investments and high bonuses. One-time charges are unlikely to carry over into next year, and even if they do, it’s a positive long-term as AI investments pay off later into the future.
FDS stock is down 39% year-to-date today and trades at less than 19 times earnings today. Historically, the market has paid above 30 times earnings for the stock, with certain bouts taking the premium over 40 times earnings.
Plenty of room for a triple-digit recovery. There have been exactly 25 years of dividend payout increases.
Brown & Brown (BRO)
Brown & Brown (NYSE:BRO) is an insurance brokerage company, a very stable business that rarely underperforms. 2025 hasn’t been the best for BRO stock, as it is down 16.4% year-to-date and down over 32% from its April peak. I expect a sharp recovery down the line due to the underlying metrics being solid.
Revenue rose 35.4% to $1.6 billion in Q3 2025 and beat estimates by 4.36%. EPS also beat estimates by 12.91%, though margins came in narrower. An acquisition is to blame for this, which brought over 5,000 new employees into the company. Once you account for that, the margin actually improves.
Analysts expect 9% EPS growth for the full year, accelerating to 13% growth next year. Revenue growth for all of 2025 is expected to be 20.3% and accelerate to 27.2% in 2026. If management can continue the momentum, it’s easy to see BRO stock trading at double the price around 12-18 months out, considering you’re paying just 4 times forward 2026 sales for a company growing this fast.
There’s plenty of growth here, and $80 is a steal in my book for this business.
BRO stock comes with 31 consecutive years of dividend increases.
Becton Dickinson (BDX)
Becton Dickinson (NYSE:BDX) is a medical technology company that makes medical devices and instruments. If you could name one field that never really runs out of demand, you’re likely going to name the healthcare sector. With the population rapidly aging, the sector will benefit from a long-term steady tailwind.
BDX stock is yet to receive those tailwinds, as the stock traded sideways for years. It plunged this spring due to tariff concerns and disappointing earnings results and never recovered. You’re now paying 2017 prices for BDX stock.
Q2 revenue of $5.27 billion missed analyst estimates of $5.35 billion, and the company lowered its annual profit forecast in anticipation of a potential hit from tariffs. The EPS midpoint for full-year earnings is at $14.2. This is 25 cents lower than it otherwise would have been due to tariffs.
All things considered, the selloff has been an overreaction. Growth remains healthy, and you get a 2.22% forward dividend yield. Full-year EPS is expected to grow 9.4% with no decline in sight. Revenue is also expected to grow 7.92% in 2025.
BDX is also a Dividend King with 52 consecutive years of dividend hikes on record.