August 21st, as US stocks continue to trade near historical highs, some investors are beginning to reassess dividend-paying assets to seek balance between growth and income. Dividend investing can provide stable and predictable cash flows, bringing additional income sources to investment portfolios. As market concerns about potential downside risks intensify, Moneta Markets believes that dividend stocks often possess stronger defensive characteristics. Research shows that during multiple market downturns over the past 50 years, dividend stocks averaged only 14.4% declines, while non-dividend paying stocks averaged 28.2% declines, with the S&P 500 index overall experiencing 19.9% pullbacks. This demonstrates that dividend stocks' stability during market volatility cannot be ignored.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which tracks the S&P 500 Dividend Aristocrats Index, serves as a representative tool in this space. Dividend aristocrats refer to companies that have consistently and increasingly paid dividends for 25 years or more. Moneta Markets indicates that companies capable of increasing dividends for 25 years or longer typically possess solid business models and strong competitive moats. These companies not only provide sustained returns for long-term investors but also effectively avoid so-called "dividend traps," where investors focus solely on high dividend yields while overlooking potential risks in company fundamentals.

Since entering 2025, energy sector dividend aristocrats have shown mixed performance. Although oil prices reached highs of $77.6 per barrel mid-year, they subsequently declined rapidly to the $60 range. Moneta Markets believes that these companies, with their healthy balance sheets and prudent capital expenditure strategies, can typically maintain or even increase dividends during commodity cycles. However, during periods of weakening oil prices, their performance may lag behind more defensive sectors. For investors seeking stable income while remaining optimistic about global energy market growth potential, energy dividend aristocrats remain a noteworthy choice.

The following are some notable dividend aristocrat representatives in the energy and utilities sectors:

1. Exxon Mobil Forward dividend yield: 3.69% Industry: Energy – Integrated Oil & Gas

Exxon Mobil (NYSE: XOM) is a star among dividend aristocrats, having increased dividends for 41 consecutive years. Its dividend payout ratio approaches 50% of 2025 earnings forecasts, significantly higher than the energy sector average. In the first quarter this year, the company distributed $4.3 billion in dividends to shareholders and spent $4.8 billion on share repurchases. Second-quarter revenue of $81.51 billion declined 12.4% year-over-year but still exceeded market expectations by $1.2 billion; earnings per share of $1.64 also surpassed analyst predictions. The company plans to increase Permian Basin daily production to 2.3 million barrels of oil equivalent by 2030 while expanding Guyana production to 1.7 million barrels of oil equivalent. Morningstar rates Exxon as a "best dividend stock" and sets a $135 target price, representing over 26% upside potential from current levels.

2. Chevron Forward dividend yield: 4.41% Industry: Energy – Integrated Oil & Gas

Chevron (NYSE: CVX) has increased dividends for 38 consecutive years, with its current 4.4% dividend yield ranking among the top of major oil companies. Second-quarter earnings per share of $1.77 slightly exceeded market expectations, but revenue of $44.82 billion declined 12.4% year-over-year. The company attributed performance pressure to declining oil prices and Hess share value adjustments. Notably, Chevron completed its acquisition of Hess in July 2025, with a total transaction value of $55 billion. This move not only strengthened asset reserves but also raised the company's 2026 free cash flow expectations to $12.5 billion, with anticipated annual synergies of $1 billion by year-end.

3. Eversource Energy Forward dividend yield: 4.5% Industry: Utilities – Electric Power

Eversource Energy (NYSE: ES), as a new dividend aristocrat, has increased dividends for 25 consecutive years. The company serves 4.4 million customers, with a five-year dividend compound growth rate of 5.9%, significantly higher than the overall dividend aristocrat average. Eversource expects to achieve 5%-7% annual earnings growth through 2029, laying the foundation for continued dividend increases. Second-quarter revenue of $2.84 billion increased 12.3% year-over-year, though slightly below market expectations. With a strengthened balance sheet and supportive regulatory policies, the company has raised its five-year infrastructure investment plan by 10%.

Overall, Moneta Markets believes that dividend aristocrats are not only suitable for investors seeking long-term stable returns but can also provide portfolio cushioning in environments of market volatility and rising potential risks. For investors hoping to find opportunities combining growth and income within global energy and utilities sectors, dividend aristocrats like Exxon Mobil, Chevron, and Eversource remain worthy of continued attention.