Investors don’t have to look far to find justification for investing in dividend aristocrats. Generally speaking, dividends are an excellent way to secure stable returns and compound one’s wealth. For example, from the year 2000 to 2020 the S&P 500 Index returned 129.95% without associated dividends. Investors who reinvested the dividends into the index during the same period would have seen their returns jump to 235.65%. 

The dividend aristocrats have increased their payouts for each of the last 25 years. To do so a firm has to be stable. Dividends require cash. Thus, paying uninterrupted dividends for 25 consecutive years requires stability.

That’s the general logic behind investing in the dividend aristocrats. How much could $10K invested in each of these dividend Aristocrats grow to buy 2025? Let’s take a look. 

Johnson & Johnson (JNJ) 

A bullish investor who wagers $10K on Johnson & Johnson (NYSE:JNJ) stock at the moment has a lot to look forward to. 

J&J shares are depressed at the moment. The company continues to wrestle with overhang from the ongoing talc litigation that has plagued the company for years. In addition, the company just released earnings that didn’t really surprise or disappoint. Instead, they were pretty much in line with what Wall Street had been expecting with a slight beat on the earnings front.

Moving forward, the best-case scenario is that share prices increase from $144 to $177 within the next 12 to 18 months. The company just increased its dividend to $1.24 per quarter. Let’s use that and extrapolate forward. That dividend should add $4.96 to returns over the next 12 months. Thus, the best case is that the JNJ stock could run from today’s $144 price to about $181.96 by this time next year. That equates to a return of more than 26% during that period.

Becton Dickinson & Company (BDX)

Becton Dickinson & Company (NYSE:BDX) Is a company that perhaps many have heard of but few know much about. The stock represents a firm in the highly stable medical sector. That’s a good part of the reason it has such stability: demand for healthcare is relatively inelastic with consumers tending to invest in their health throughout the business cycle.

The company produces everything from basic medical equipment, such as syringes to diabetes pumps, for example.

Shares are also slumping at the moment and have fallen to a price of $233. The best case is that those shares should increase to a value of $277 within the next year or so. Investors can reasonably expect at least another $3.80 in dividend payments over the next 12 months. That pushes the base case expected return above 20%. Thus, $10K invested today could realistically grow to $12K by 2025.

One of the reasons BDX Shares are currently slumping is that the Chinese medical device market is down. Assuming that it rises investors clearly have a lot to look forward to.

3M (MMM)

3M (NYSE:MMM) continues to be a strong opportunity that’s also associated with trepidation. After all, many investors continue to worry that 3M is at risk of reducing its dividend. Plus, the company has dealt with multiple lawsuits that threaten to shunt cash away that would otherwise be directed toward revenues.

My colleague Rich Duprey notes that the company has committed to continuing paying its dividend despite everything.

Perhaps the lawsuits do ultimately end up affecting 3M dividends. However, that’s not likely to happen in the immediate term. Instead, the company continues to work to shore up its positions. The company has restructured to find cost savings on the order of $400 million. The company also reduced net debt by $2 billion. Investors who choose to avoid 3M on moral and ethical grounds are certainly justified. However, there’s much less worth arguing from a fundamental perspective.

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is a near surefire bet among dividend aristocrat stocks as energy prices start to get hot. That’s exactly the sort of environment we are witnessing at the moment. Oil prices continue to push higher as geopolitical instability heats up. energy stocks have strengthened as a result with Exxon Mobil being among the very best choices.

In short, XOM shares look great at the moment. 

The company has excellent positions in the Permian Basin primarily located in Texas as well as the Starbroek block located offshore in Guyana. It is there that ExxonMobil has a 45% stake. Guyana’s offshore reserves represent a strong strategic advantage for the company. As the resource is developed it promises to reduce domestic dependence on foreign oil reserves which introduce significant instability.

By the way, Exxon Mobil has an excellent track record of creating value overall. That’s an excellent reason to believe that the company will successfully develop its investment in Guyana. About $10k invested today could turn into nearly $13k should the best-case scenario come to fruition.

Amcor (AMCR)

Amcor (NYSE:AMCR) isn’t a particularly well-regarded dividend aristocrat stock. That’s precisely why I think it’s necessary to discuss it: despite its mediocre status it is a prime example of how valuable even the most humdrum dividend aristocrats are. 

The stock is currently rated as a whole meaning analysts basically have no strong feelings toward it. Yet, shares currently trade for $8.83 and are expected to rise to a value of $9.85 in the next 12 months. That equates to an expected return of 11% for the base case. The additional 50 cents of dividends expected in the next year pushes that return to 17.2%. In other words, $10K invested in AMCR today could grow to nearly $12K in the next year

The company provides packaging for the food and beverage industry. It has been hit by difficult-to-judge consumer behavior. The economy is either very strong or on the verge of disaster depending upon where you look.

However, the good thing to note about Amcor is this: it is part of a defensive food and beverage category that tends to do well across market cyclicality. It should protect your capital across a wide variety of market environments ahead.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) is associated with American culture, ultra-valuable household brand names, and Warren Buffett.

It’s the last of those three things that I would like to focus on: Warren Buffett. He’s strongly associated with Coca-Cola stock which is his longest term holding. Buffett is also known for his ability to produce strong returns while avoiding large losses. 

His Coca-Cola holdings have netted Buffett $10 billion over their lifetime. The best case expectation is that $10K invested today in KO shares will grow to $12,040 over the next 12 months with dividends included. 

That return is roughly 1.5% better than the 10.26% annual return from the S&P 500 since its 1957 inception. Coca-Cola is The most valuable food and beverage brand globally. wherever you go, Coca-Cola has a strong presence. That’s indicative of the stability that investors can expect from an investment in KO shares.

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) is an excellent balance between stability and thematic growth. The firm’s public utilities business lends stability while its equally massive solar and wind business provides growth.

By the way, both of those businesses are the largest globally within their respective categories. $10K invested in NEE today is expected to increase in value to $13,490 by 2025. That’s the best case scenario including dividends. 

So, why should investors believe that shares could rise to that price? much of the answer has to do with rate cuts. The Federal Reserve is still expected to cut rates in 2024. When it does that will reduce blending costs making it cheaper for companies to invest in growth such as wind and solar energy. In turn, that should spike the price of NextEra Energy shares. 

Thus, NEE is among the dividend aristocrat stocks with the most potential throughout the remainder of 2024. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.