3 Dividend Aristocrat Stocks to Buy for Passive Income

The concept of passive income is certainly attractive on paper, as it involves generating regular money flows with minimal activity. However, creating a reliable passive income source is easier said than done. Some people look to business activities or real estate rental income to generate steady streams of cash, but these approaches can take years to bear fruit and require heavy investments in time and money. Alternatively, you can consider investing in high-quality dividend stocks that will pay you to practice patience.

With so many great companies to choose from in the stock market and no shortage of dividend-paying companies, it might just be the easiest way to start generating passive income today. Interested in companies known for their consistency? It's hard to find a more reliable passive income source in the stock market than the dividend aristocrats. These are companies that have increased their annual dividend payments in each of the past 25 consecutive years or more. That's the type of reliability that investors can bank on for the long run, and some of these stocks also offer upside in terms of price appreciation.

If you are interested in generating passive income with stocks, here are 3 dividend aristocrat stocks to buy now:

Abbott Laboratories (NYSE: ABT)

Dividend aristocrats are able to consistently return capital to shareholders thanks to their strong financial health that is driven by their powerful business models. After all, a company needs consistent earnings and stable free cash flow generation to even provide a dividend payment in the first place, let alone increase the payouts each year. Abbott Laboratories is a great example of the type of business that passive income investors should be looking for, as it's a diversified health care products company with a nice mix of new and existing products offering stable sales along with growth potential.

The company's main product lines include nutritionals for adults and infants, diagnostic systems, vascular implants, cardiac rhythm management products, and diabetes care products, which are sold directly to wholesalers, distributors, government agencies, health care facilities, and pharmacies. Abbott Laboratories also produces the at-home COVID-19 test kits that continue to play a vital role in keeping the pandemic in check and have created an entirely new revenue stream for the company. Finally, the stock offers some upside at this time as elective procedures and physician visits tick back up, which benefits its medical devices business, and investors have to love the fact that the company reported Q2 worldwide sales of $10.2 billion, up 35% on an organic basis.

Dover Corporation (NYSE: DOV)

Why aren't more investors talking about Dover Corporation? It's a dividend aristocrat stock that is up over 38% year-to-date and continues to show relative strength in a mixed tape. Dover Corporation manufactures a broad range of specialized industrial products and sophisticated manufacturing equipment that play an essential role in tons of different industries, which means it's another diversified business model to bank on over the long term. With operating segments including Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions, and Refrigeration & Food Equipment, it's easily one of the most interesting industrial companies to consider just based on the sheer amount of end markets its products are used in.

According to data from Marketbeat, Dover's dividend has grown by 8.24% over the last three years and the company has boosted its payout for 59 consecutive years, which is truly remarkable consistency. The company is also a nice reopening play as its food and refrigeration equipment should see more demand as more people are vaccinated and head out to eat again. Dover Corporation had a fantastic Q2 that crushed earnings estimates, as the company delivered Q2 diluted EPS of $1.82, up 112% year-over-year, on $2 billion in revenue. While the stock has rallied considerably over the last few months, it's still a fine option for passive income investors that want exposure to one of the best industrial companies in the market.

Kimberly Clark Corp (NYSE: KMB)

If you are a dividend investor after high yields to maximize your passive income, Kimberly Clark Corp stands out as a potential buy thanks to its 3.26% dividend yield and its history of 49 consecutive years of dividend raises. It's a leading consumer products company with a portfolio of some of the strongest brands in the world including Huggies, Kleenex, Scott, Pull-Ups, and Kotex. What's nice about consumer staples stocks is that they tend to hold up well in almost any market environment since they offer products that always see steady demand.

The company is currently working to combat inflation by raising its prices and reducing its operating costs, which are both moves that could end up paying off in a big way over the long term. There's also a lot to like about the recent price action for the stock, as it has reclaimed all of the major moving averages with authority. Adding this dividend aristocrat for passive income could end up being a great idea, as the stock might be in for a strong finish to 2021.