Long-term investing has always been one of the most alluring things in the stock market, drawing new investors into the cutthroat world of investing with the promise of a comfortable retirement. While it may be true that investing in your early years helps build a strong foundation for your retirement, starting is one of the most tedious steps for any beginner. 

Are you one of these beginners looking for companies to start investing in? 

If so, you’re in luck; with the earnings season, we have seen Dividend Aristocrats who have continuously shown their resilience in a challenging market environment, making them a strong long-term portfolio contender with their proven business model, constantly growing dividend income and strong management. Sounds exciting? Let’s look at our top three Dividend Aristocrats moving into February 2024.

Brown & Brown, Inc. (BRO)

Brown & Brown, Inc. is a brokerage and insurance agency specializing in casualty, property, and employee insurance. The company’s operations are divided into four segments: retail for its insurance products offered to commercial, public, and individual customers; wholesale brokerage for its commercial and personal lines sold to brokers and agents; national programs for its general agent and professional liability services; services segment for its other insurance-relate service. Moreover, the company has been active in M&A, including acquiring Acorn International Network Pte, Ltd, which will allow its subsidiary, Bridge Specialty International, to expand in Asia, and acquiring assets from Caton-Hosey Insurance, which will help expand its operations in Florida. 

BRO’s latest unaudited financial results ended with some solid full-year and fourth-quarter results for the company. Revenues ended with a 13.8% YoY increase for the fourth quarter, commission fees also rose 12.4%, organic revenue increased by 7.7%, net income jumped 85.0%, and diluted net income per share increased by 84.3%, highlighting the company’s strong profitability. Full-year revenues also grew by 19.1%, and its net income jumped by 29.6%. 

Dividend growth investors will appreciate Brown & Brown's commitment to shareholder value with 30 years of consistent dividend increases. This robust financial growth, continued growth in shareholder value, and the company’s vision for its future give investors more than enough reason to start looking into BRO for their long-term portfolio.

McCormick & Company, Incorporated (MKC)

McCormick & Company, Incorporated, is a household name in the kitchen and is best known for its spices, condiments, and seasoning mixes. The company operates in two main segments: flavor solutions for the distribution and sale of its range of products sold to various food service clients and food manufacturers and a consumer segment for its McCormick variety of global brands. MKC recently announced the appointment of its new Board of Directors, Terry Thomas, who will be focused on uncovering new revenue streams for the company, corporate strategy, and mergers & acquisitions in his new role. 

The company recently reported encouraging results for its fourth quarter and full fiscal year 2023. Sales increased 3% YoY for its fourth quarter and 5% YoY for its full-year 2023. Adjusted EPS grew 16.44% YoY for the fourth quarter, and the full year grew 6.72%. Cash flow from operations for the full year ended with a record $1.2 billion, highlighting McCormick’s strong financials. The company expects an  8% to 10% growth in its 2024 full-year operating income and its earnings per share to come in around $2.76 to $2.81. 

Dividend investors will note that MCK has continuously increased its dividends for the last 38 years, and the current yield is 2.3%.

Its solid financial performance and outlook present a strong case for long-term investors to jump in and pick up MKC.

NextEra Energy, Inc.(NEE)

Last on our list of Dividend Aristocrats to buy is NextEra Energy, Inc., an energy infrastructure and electric power company operating through wholly-owned subsidiaries. NEE builds and operates electric generation facilities for the U.S. and Canada wholesale energy markets and also invests and holds assets in clean energy businesses. These businesses include renewable fuels and battery storage. It has recently announced a milestone in its clean hydrogen project, where it produced hydrogen.

NextEra Energy recently announced its fourth-quarter and full-year 2023 numbers with solid results. Adjusted EPS grew 9.3%, attributed to NEE’s strong operational and financial performance of its subsidiary’s NextEra Energy Resources and FPL. NextEra Energy Resources also reported a record year for its storage origination and new renewables, which added approximately 9,000 megawatts to its backlog. The company sees its NextEra Energy to grow at 6% to 8% on its adjusted earnings per share for its 2024 performance. Its solid growth, performance, and dividends made NEE one of the most attractive Dividend Aristocrats to buy right now.

NextEra Energy is also part of the exclusive Dividend Aristocrats, thanks to the company continuously increasing dividend payments for 27 years. NEE's dividend yield is currently 3.2% (based on its latest trading price), making it one of the best stocks for long-term investors.
Final Thoughts

Long-term investing has always faced evolving challenges as the markets continue to find new ways to strategize their capital deployment and new data supporting efficient theories of accumulating wealth in shorter periods. While the allure of a new strategy and concept sounds exciting, time-tested strategies used by industry experts and legends will always be in any discussion of effective investment strategies.

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