Two Dividend Aristocrats Worth Your Serious Consideration

Why These Stocks Make Obvious Sense for Income Investors

When it comes to building wealth through dividend stocks, history speaks volumes. Over the past half-century, dividend-paying companies have delivered returns more than double those of non-dividend payers, according to research from Ned Davis Research and Hartford Funds. The real wealth, however, flows to investors who choose companies with consistent dividend growth — not just static payouts.

Enterprise Products Partners (NYSE: EPD) and Verizon Communications (NYSE: VZ) stand out as textbook examples of this principle. Both have demonstrated decades-long commitment to rewarding shareholders with rising distributions, backed by fortress-like balance sheets and robust cash generation. For income-focused investors seeking stability with growth potential, these represent straightforward opportunities worth exploring.

Enterprise Products Partners: 27 Years of Unwavering Distributions

Enterprise Products Partners has accomplished something remarkable — it has increased its distribution for 27 consecutive years without interruption. Since going public, this master limited partnership (MLP) has never missed an opportunity to boost payouts to unitholders.

The energy midstream operator’s financial foundation is exceptionally strong. During the most recent quarter, it generated $1.8 billion in distributable cash flow — enough to cover its current payout with a comfortable 1.5x cushion. This left $635 million retained, which the company strategically deployed: $80 million went toward unit repurchases, while the remainder fueled expansion projects.

The numbers reveal why this distribution is sustainable. Enterprise maintains one of the sector’s strongest credit profiles, boasting an A-/A3 bond rating and a conservative 3.3x leverage ratio. Its current yield sits at 6.9%, dramatically outpacing the broader market’s 1.2% average.

On the growth front, Enterprise is in the final stretch of a major capital expenditure cycle launched in 2022. The company plans to invest $4.5 billion in 2025, with $2.2 billion to $2.5 billion earmarked for 2026. These projects expand operational capacity and cash-generating potential. Once spending moderates and new assets begin contributing, management expects materially higher free cash flow, positioning the company to accelerate distribution growth and expand its $5 billion unit buyback program.

Verizon: 19-Year Dividend Growth Streak Powered by Operational Excellence

Verizon recently marked another milestone — 19 consecutive years of dividend increases — by raising its quarterly payout by approximately 2%. The telecom giant’s current yield of 6.7% reflects a compelling income opportunity backed by predictable business fundamentals.

The company’s cash generation remains impressive. Through nine months of 2025, Verizon produced $28 billion in operating cash flow. After funding $12.3 billion in capital expenditures and $8.6 billion in dividend payments, the company still had $7.2 billion remaining — capital it’s using to strengthen its already pristine balance sheet.

This financial flexibility is evident in Verizon’s metrics: a 2.2x leverage ratio (improved from 2.5x year-over-year) and investment-grade ratings across all three major agencies (A-/BBB+/Baa1). This fortress balance sheet is enabling aggressive strategic moves, including its $20 billion acquisition of Frontier Communications, which meaningfully expands fiber coverage and strengthens competitive positioning.

Beyond organic growth, Verizon is pursuing significant operational transformation. Cost-reduction initiatives are being reinvested into customer experience enhancements designed to drive higher attachment rates — particularly bundling mobile and broadband services. This strategy should unlock additional cash flow in coming years, providing fuel for sustained dividend growth.

The Case for Adding Both to Your Portfolio

For dividend-focused investors, the choice between Enterprise Products Partners and Verizon isn’t about picking one — both deserve consideration. Each company operates a distribution that’s mathematically supported by substantial, growing cash flows. Each maintains fortress balance sheets that provide strategic flexibility. And each has demonstrated multi-decade commitment to rewarding shareholders.

The no-brainer aspect here is straightforward: when you identify corporations generating substantial recurring cash, maintaining investment-grade credit strength, and operating in stable, essential industries, backing their dividend growth becomes a rational choice. These two fit that profile precisely.

For those seeking meaningful income coupled with genuine growth potential, both represent intelligent portfolio additions in today’s environment.