The Dividend Aristocrats are selected companies in the S&P 500 that have increased their dividends year over year for at least 25 consecutive years and performed quite well. In 2018 the Dividend Aristocrats (-2.73%) also outperformed the S&P500 (-4.38%) by 1.65%. The Dividend Aristocrats list currently contains 53 companies diversified across the consumer staples, industrials, materials, health care, financial services and consumer discretionary sectors.To see which dividend aristocrats should be avoided in 2019, we looked at the stocks with no upside based on analyst average share price targets.
Dividend Aristocrats at risk
Based on the average analyst target price for the next 12 months, we identified dividend aristocrats stocks that actually have a potential downside or little upside. In the table below, the ten stocks; their recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target.
| Company | Ticker | Sector | Price | Dividend yield (%) | 1yr Target Est. | % Upside to Target |
|---|---|---|---|---|---|---|
| Franklin Resources Inc. | BEN | Financial Services | $31.59 | 3.29% | $27.33 | -13.49% |
| Hormel Foods Corporation | HRL | Consumer Defensive | $41.46 | 2.03% | $40.00 | -3.52% |
| Cincinnati Financial Corporation | CINF | Financial Services | $79.35 | 2.67% | $78.29 | -1.34% |
| Kimberly-Clark Corporation | KMB | Consumer Defensive | $108.12 | 3.81% | $106.88 | -1.15% |
| AFLAC Incorporated | AFL | Financial Services | $47.57 | 2.19% | $47.14 | -0.90% |
| Procter & Gamble Company | PG | Consumer Defensive | $93.60 | 3.06% | $93.33 | -0.29% |
| Clorox Company | CLX | Consumer Defensive | $147.69 | 2.60% | $148.21 | 0.35% |
| T. Rowe Price Group Inc. | TROW | Financial Services | $94.55 | 2.96% | $95.29 | 0.78% |
| Illinois Tool Works Inc. | ITW | Industrials | $133.25 | 3.00% | $136.00 | 2.06% |
| Ecolab Inc. | ECL | Basic Materials | $153.89 | 1.20% | $157.42 | 2.29% |
This top-10 is dominated by two sectors, being the Financial services and Consumer Defensive. Interested in the top-10 dividend aristocrats with a postive upside target? See the article Top 10 Dividend Aristocrats according to analysts
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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