Dividend Aristocrats: 3 Stocks to Buy Before Earnings

In a bull market, average investors can feel like stock market wizards as soaring indices make even impulsive picks look brilliant. This euphoric environment, where a rising tide lifts all boats, often masks fundamental flaws in shaky stocks like overvaluation or weak business models. However, prudent investors recognize that true wealth building requires looking beyond temporary market enthusiasm to companies with proven resilience across multiple market cycles.

Dividend Aristocrats—companies that have increased their payouts for 25 or more consecutive years—stand out as particularly compelling investments during uncertain times. This remarkable track record signals management’s confidence in future cash flows and provides a foundation for deeper research, effectively filtering out flash-in-the-pan performers. The steady income from these stocks not only cushions price volatility during market downturns but also anchors portfolios through disciplined compounding over time.

The upcoming earnings reports from three established Dividend Aristocrats—Coca-Cola, Chubb, and RTX—offer investors a timely opportunity to evaluate whether these companies maintain the financial strength and strategic positioning that have supported their decades-long dividend growth streaks. Each represents a different sector with unique opportunities and challenges, yet all share the common thread of dividend reliability that has defined their investment appeal.

Coca-Cola (NYSE: KO) has posted modest gains in 2025, with shares up 7.7% year-to-date and trading near $67 per share. This performance notably lags the S&P 500’s 20% surge, reflecting a broader market shift away from defensive consumer staples toward more cyclical sectors. However, the company’s five-year total returns, including dividends, reach a respectable 52%, driven primarily by steady income generation rather than dramatic price appreciation.

The beverage giant’s dividend record remains truly stellar, with 63 years of consecutive increases establishing KO as one of the most reliable income generators in the market. The current quarterly payout of $0.51 per share yields approximately 3%, backed by an expected $9 billion in free cash flow for 2025. This cash-generating prowess proved its worth during crises like the pandemic, when dividend payments provided crucial stability to investors amid market turmoil.

Despite these strengths, Coca-Cola faces significant headwinds that investors must consider. Shifting consumer tastes toward healthier beverages continue to pressure traditional soda sales, requiring costly innovation and portfolio transformation. Emerging markets—accounting for 65% of revenue—face currency volatility that could impact third-quarter earnings, while geopolitical disruptions and rising input costs challenge margin maintenance. Still, with a forward P/E of 20 and a $77 per share consensus price target, KO stock represents a compelling buy for income-focused investors seeking defense and stability.

Global insurer Chubb (NYSE: CB) has experienced uneven performance in 2025, with shares up only slightly while trailing the broader S&P 500. The stock hit a high just under $307 per share in March before settling at lower levels. However, the company’s five-year returns exceed 148%—outpacing the benchmark index—buoyed by consistent dividend payments and steady premium growth across its global insurance operations.

Chubb’s 32-year dividend growth streak solidifies its status as a Dividend Aristocrat, with a quarterly payout of $0.97 per share yielding 1.4% annually. The company’s 6.6% dividend hike in May reflects robust cash flows, while the remarkably low 15.97% payout ratio signals substantial room for future increases. This financial flexibility provides management with ample capacity to navigate industry challenges while rewarding shareholders.

The insurance sector faces several headwinds that could impact Chubb’s near-term performance. Catastrophe losses from hurricane activity could hit third-quarter earnings, with estimates suggesting potential claims of $500 million. Regulatory scrutiny on premium hikes and emerging cyber risks, combined with potential economic slowdowns affecting commercial lines (which represent 60% of revenue), pose additional threats. Large clients’ bargaining power may also pressure margins. Despite these challenges, Chubb’s $113 billion market cap, 12.5 P/E ratio, and 15% return on equity suggest attractive value, making CB stock another compelling buy for investors seeking income and resilience.

Aerospace and defense giant RTX (NYSE: RTX) has surged 37% in 2025, with the stock reaching $157.70 after hitting a high of $170.85 per share. The company’s five-year total returns exceed an impressive 193%, driven by robust demand in both defense and commercial aerospace sectors. This outstanding performance demonstrates how Dividend Aristocrats can deliver substantial capital appreciation alongside reliable income.

RTX boasts 32 years of consecutive dividend increases, establishing itself as a leading member of the dividend aristocracy. The quarterly payout of $0.63 yields 1.6%, backed by $5 billion in free cash flow and a sustainable 40% payout ratio. The company’s massive $236 billion backlog provides exceptional visibility into future growth, supporting continued dividend increases for years to come.

Despite its strong performance, RTX faces operational challenges that warrant monitoring. Earlier this year, the company’s Pratt & Whitney engine unit experienced worker strikes that were subsequently resolved, though supply chain bottlenecks continue to linger. On the positive side, calls for a $1 trillion Defense Department budget by President Trump minimize budget cut risks for RTX’s Raytheon division, which represents almost 32% of revenue. With a forward P/E of 23 and a $174 per share price target, RTX remains an attractive buy for income investors seeking exposure to the resilient aerospace and defense sectors.