A dividend aristocrat is a company that has consistently increased its dividend payouts to shareholders for at least 25 consecutive years. These companies are typically well-established, financially stable, and have a strong track record of performance. Because of their history of steady dividend growth, dividend aristocrats are often considered a safe investment for those looking for income as well as potential capital appreciation. They can provide a reliable source of passive income, especially in uncertain market conditions, making them attractive to conservative investors. Examples include well-known companies like Target, Johnson & Johnson, Procter & Gamble, and Coca-Cola.
