High-dividend stocks have become the new favorite of Wall Street. High-yield stocks are seen as a good buffer during periods of market volatility. Given that dividend growth in the S & P 500 has outpaced inflation since 2000, such stocks are also often seen as a hedge against inflation.

There are 64 companies in the S & P 500 that have raised dividends every year for at least 25 years in a row, known as "dividend aristocrats". They are also components of the S & P 500 dividend aristocracy index. These companies usually have a mature business model and can continue to generate sound cash flow, which may be a good choice if they are mistakenly killed because of external factors. Some analysts believe that the following three dividend aristocrats are likely to outperform the market.

1 、 AbbVie Inc

Pharmaceutical giant$AbbVie (ABBV.US)$It has raised dividends for 50 years in a row and can even be called the king of dividends.

The dividend yield of the stock is close to 4%, which undoubtedly increases the total return. In recent years, Aberdeen has not only rewarded investors through dividends. Because of its strong lineup of best-selling drugs and rich R & D pipelines, the company's performance has been growing, and its share price has outperformed the market for a long time.

Some investors may worry that Aberdeen's share price will be affected by the loss of its exclusive position in the US market next year by the star product Shuomile (trade name Humira). As a best-selling drug that has occupied the top spot in the world for many years, the decline in sales of Xiumile will inevitably have a negative impact on the company. However, the subsequent autoimmune product line will be strong, and Aberdeen expects the combined peak sales of the new autoimmune disease drugs Rinvoq and Skyrizi to exceed the peak sales of Humira.

The company's pessimistic outlook for 2023 has been reflected in its share price, with the current price-to-earnings ratio below its historical average and many analysts giving it a "buy" rating.

2. Air Products & Chemicals

$Air Products & Chemicals (APD.US)$It is an industrial gas company with a history of nearly 80 years and has increased its dividend for 40 years in a row. The dividend yield is 2.5%, higher than the average yield of less than 1.5% for the s & p 500.

Given the company's leading position in the industrial gas industry-owning and operating some of the world's largest industrial natural gas projects, including the sustainable conversion of rich natural resources into syngas, for gasification projects to produce high-value electricity, fuel and chemicals, earnings growth is expected to be higher than the average of stocks in the S & P 500. Adjusted earnings per share (EPS) have grown at a compound annual rate of 11 per cent since 2014, and the company expects adjusted earnings per share to grow by 13 per cent to 15 per cent this year.

Air Products & Chemicals's most potential growth businesses are the production of green hydrogen (made from renewable energy) and blue hydrogen (made from natural gas using carbon capture). The company has become the world's largest hydrogen producer and is expected to become a leader in green and blue hydrogen in the future.

3 、 Lowe's Companies Inc

Home decoration retailer$Lowe's Companies (LOW.US)$It has increased dividends for 48 years in a row, not far from the king of dividends, and the dividend yield is now close to 2%.

Lowe's Companies Inc's share price has fallen more than 20 per cent so far this year after soaring in 2020 and 2021, amid concerns about the negative impact of inflation and the possibility that the company could fall into recession.

However, Marvin Ellison, chief executive of Lowe's Companies Inc, believes that higher interest rates may actually be good for his company. "due to insufficient housing supply and high interest rates, homeowners have an incentive to invest in their current homes to meet demand," he said on a conference call in the second quarter. "

In addition, data show that more than 50% of American homes are more than 40 years old. Houses built at the peak of the real estate boom in the early 2000s began to enter the 20-year mark, so household decoration spending is likely to increase for the rest of the decade, and Lowe's Companies Inc will be the main beneficiary of this trend.