3 Dividend Aristocrats Ready for an (Upward) Technical Breakout
Technical analysis has always been a hit or miss for many investors. The guidelines and metrics can be as clear as day, but one must remember that the readings have to be taken with a grain of salt. Not only that, there's always the possibility of human error during analysis. Misinterpreting data and patterns or relying too heavily on specific indicators when a broader perspective would have been more ideal could result in an opposite desired outcome. Mix that with the various emotions that come from seeing the market go up and down on uncertain trade policies, and you have a recipe for disaster.
Thankfully, Barchart has an objective way of compiling trade analysis and multiple data points into a simple yet elegant presentation called Trend Seeker ®. So today, let's use Trend Seeker ® in conjunction with one of my favorite income stock subsets - the Dividend Aristocrats - to evaluate which stocks have the strongest technical setups to act as a springboard for your long-term trading.
How I Came Up With The Following Stocks
Using Barchart's Stock Screener, I selected the following filters to get my list:
Trend Seeker® Direction: Set at Strongest. Limits the results to stocks with a very strong bullish trend based on Trend Seeker®, which uses Barchart's computerized trend analysis system based on wave theory, market momentum, and volatility to identify potential buy and sell areas.
Trend Seeker® Signal: Buy ratings based on Trend Seeker®'s analysis.
Number of Analysts: 16 analysts. Indicator of a very high buy confidence in a stock.
Current Analyst rating: Moderate to Strong Buy.
Watchlist: Dividend Aristocats. This list limits the results to S&P 500 companies that have increased their dividends for 25 consecutive years or more.
Having these filters set, I ran the screen and got 6 hits:
I arranged the stocks in order from highest to lowest analyst ratings and selected the top three. However, Barchart Trend Seeker ® works in conjunction with Barchart Opinion to generate a complete analysis of stocks, and a buy signal from Trend Seeker ® may not necessarily mean a buy signal from Barchart Opinion or overall.
For that reason, I'll remove XOM, CVX, and ALB from the list, as their opinion ratings are 'sell' - at least at the time I wrote this.
With that out of the way, let's discuss the only three top Dividend Aristocrats on the on the list, starting with number one:
Abbott Laboratories (ABT)
Abbott is one of the most diversified healthcare companies in the world - and a frequent name featured in my top dividend stock lists. The company develops and markets medical devices, diagnostics, nutritional products, and branded generic medicines, and it is so well-known that there's a good chance that you or close family members are using its products.
Abbott pays an annual $2.36 dividend, which translates to a yield of around 1.73% based on its current trading price.
Trend Seeker ® Data
ABT stock has a 100% overall buy rating based on Barchart Opinion and Trend Seeker, which, unsurprisingly, is based on a 100% buy rating across short, medium, and long-term indicators. It has maintained that rating from last month.
However, its short-term averages are weakening as it approaches its first resistance point at $137.07, so it might be prudent to wait and see if it crosses above that or drops to its nearest support level before deciding on the stock.
Caterpillar Inc (CAT)
When you see heavy equipment on construction sites, you know there's going to be a Caterpillar product or machine right there. The company is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and locomotives. It operates across many industries, including infrastructure, energy, and transportation. It also offers financing options under Cat Financial to help clients acquire their products more easily.
The company pays a $5.64 annual dividend, which translates to around a 1.56% yield.
Trend Seeker ® Data
CAT has been leaning towards the sell side in recent times, although current price action - particularly when it broke through its short-term resistance-turned-support level at around $358.55 - has pushed its overall rating to a weak buy. Result? This can be a great buying opportunity for those who want to ride its growth up.
International Business Machines (IBM)
IBM was like Google or Microsoft back in the day, being one of the first companies to heavily and successfully focus on technology. Back then, offices were filled with the company's computers and devices. Although it lost a lot of traction in the 90s, the company is now making a grand comeback as a relevant player in the AI-heavy and quantum tech space.
Dividend-wise, the company pays $6.72 annually, which translates to approximately a 2.39% yield — the highest on this list.
Trend Seeker ® Data
The company has had a strong run, with IBM stock up 27.84% year-to-date and 66.29% in the last twelve months, with the stock reaching a new all-time high of $283.06 on Thursday, June 12, 2025. It also maintains high current strength and direction scores.
This tells me that IBM stock has the momentum to move higher, though a bit of profit-taking may be around the corner. I'd be cautious during the next few trading sessions, especially if the stock reaches around $285 and $290, as they're the closest psychological resistance levels for the stock.
Final Thoughts
These three Dividend Aristocrats are primed for a bullish trend, and they could be a great addition to your portfolio with the significant yield it can bring. If you are a long-term investor looking to maximize gains, these stocks are worth considering.
However, these are based on current signals and analysis - which can change at the drop of a dime. That's why it's crucial to monitor the markets as and when you trade.
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