About
Estimating the expected 5 years future total returns are based on two main components for dividend growth stocks:
- Dividend yield
- Change in share price
The change in share price often comes from dividend growth which is mainly driven by earnings per share growth and the difference between the share price and the fair value. The expected price-to-earnings ratio over the next 5 years or the average dividend yield over the last 5 years is often used to estimate the change in the share price. The assumption made is that the share price will return over time to this average value.
To estimate the future total return the following values are added together:
- Estimated EPS growth next 5 years, as an indicator for the average dividend growth
- Average dividend yield, assuming
- Extra return due to over/undervaluation
The table below lists the top-10 Dividend Aristocrats with the highest estimated future total return for the next 5 years (CAGR), the EPS estimate for the next 5 years, and the extra positive or negative return due to over/undervaluation. The dividend score is also a factor that should be considered when evaluating those dividend stocks.
Name Ticker Valuation Dividend Score future return 5Y EPS next 5Y extra return 5Y avg div yield 5y Dividend Yield (%)
Linde plc
LIN
May be undervalued
Current dividend yield is 22%
above its 5-year average73
13.02
9.00
4.02
0.00
0.00
Sysco Corp.
SYY
Looks overvalued
Current dividend yield is -100%
below its 5-year average70
-69.42
28.37
-100.00
2.21
0.00
Nucor Corp.
NUE
Looks overvalued
Current dividend yield is -100%
below its 5-year average68
-71.78
25.67
-100.00
2.55
0.00
Albemarle Corporation
ALB
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-73.10
25.61
-100.00
1.29
0.00
West Pharmaceutical Services, Inc
WST
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-73.82
25.80
-100.00
0.38
0.00
Franklin Resources
BEN
Looks overvalued
Current dividend yield is -100%
below its 5-year average79
-75.16
21.46
-100.00
3.38
0.00
Chubb Limited
CB
Looks overvalued
Current dividend yield is -100%
below its 5-year average65
-75.20
22.85
-100.00
1.95
0.00
V.F. Corp.
VFC
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-76.17
21.46
-100.00
2.37
0.00
McDonald's Corp.
MCD
Looks overvalued
Current dividend yield is -100%
below its 5-year average74
-77.31
20.43
-100.00
2.26
0.00
Caterpillar Inc.
CAT
Looks overvalued
Current dividend yield is -100%
below its 5-year average61
-78.65
19.06
-100.00
2.29
0.00
International Business Machines Corporation
IBM
Looks overvalued
Current dividend yield is -100%
below its 5-year average75
-78.84
16.32
-100.00
4.84
0.00
Lowe's Cos.
LOW
Looks overvalued
Current dividend yield is -100%
below its 5-year average79
-79.31
19.14
-100.00
1.55
0.00
People's United Financial
PBCT
Looks overvalued
Current dividend yield is -100%
below its 5-year average73
-81.53
13.73
-100.00
4.74
0.00
T. Rowe Price Group
TROW
Looks overvalued
Current dividend yield is -100%
below its 5-year average87
-82.55
14.69
-100.00
2.76
0.00
Ecolab Inc.
ECL
Looks overvalued
Current dividend yield is -100%
below its 5-year average73
-82.77
16.24
-100.00
0.99
0.00
Grainger (W.W.) Inc.
GWW
Looks overvalued
Current dividend yield is -100%
below its 5-year average66
-82.92
15.48
-100.00
1.60
0.00
Pentair Ltd.
PNR
Looks overvalued
Current dividend yield is -100%
below its 5-year average60
-83.53
14.70
-100.00
1.77
0.00
Illinois Tool Works
ITW
Looks overvalued
Current dividend yield is -100%
below its 5-year average80
-83.69
14.13
-100.00
2.18
0.00
Exxon Mobil Corp.
XOM
Looks overvalued
Current dividend yield is -100%
below its 5-year average73
-84.37
10.14
-100.00
5.49
0.00
Cincinnati Financial
CINF
Looks overvalued
Current dividend yield is -100%
below its 5-year average79
-84.72
12.77
-100.00
2.51
0.00
Stanley Black & Decker
SWK
Looks overvalued
Current dividend yield is -100%
below its 5-year average75
-85.14
13.18
-100.00
1.68
0.00
Air Products & Chemicals Inc
APD
Looks overvalued
Current dividend yield is -100%
below its 5-year average87
-85.53
12.28
-100.00
2.19
0.00
Abbott Laboratories
ABT
Looks overvalued
Current dividend yield is -100%
below its 5-year average84
-85.67
12.84
-100.00
1.49
0.00
Target Corp.
TGT
Looks overvalued
Current dividend yield is -100%
below its 5-year average67
-86.06
11.45
-100.00
2.49
0.00
Cintas Corporation
CTAS
Looks overvalued
Current dividend yield is -100%
below its 5-year average78
-86.16
12.85
-100.00
0.99
0.00
Emerson Electric Company
EMR
Looks overvalued
Current dividend yield is -100%
below its 5-year average70
-86.87
10.47
-100.00
2.66
0.00
Medtronic plc
MDT
Looks overvalued
Current dividend yield is -100%
below its 5-year average71
-86.94
10.94
-100.00
2.12
0.00
Amcor plc
AMCR
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-86.98
8.66
-100.00
4.36
0.00
Becton Dickinson
BDX
Looks overvalued
Current dividend yield is -100%
below its 5-year average71
-87.06
11.65
-100.00
1.29
0.00
Sherwin-Williams
SHW
Looks overvalued
Current dividend yield is -100%
below its 5-year average85
-87.73
11.50
-100.00
0.77
0.00
Coca-Cola Company (The)
KO
Looks overvalued
Current dividend yield is -100%
below its 5-year average66
-87.90
9.05
-100.00
3.05
0.00
Dover Corp.
DOV
Looks overvalued
Current dividend yield is -100%
below its 5-year average64
-87.98
10.26
-100.00
1.76
0.00
PepsiCo Inc.
PEP
Looks overvalued
Current dividend yield is -100%
below its 5-year average73
-88.04
9.20
-100.00
2.76
0.00
Roper Technologies
ROP
Looks overvalued
Current dividend yield is -100%
below its 5-year average69
-88.38
11.10
-100.00
0.52
0.00
S&P Global, Inc.
SPGI
Looks overvalued
Current dividend yield is -100%
below its 5-year average80
-88.61
10.50
-100.00
0.89
0.00
Procter & Gamble
PG
Looks overvalued
Current dividend yield is -100%
below its 5-year average74
-88.77
8.68
-100.00
2.55
0.00
Automatic Data Processing
ADP
Looks overvalued
Current dividend yield is -100%
below its 5-year average74
-88.87
9.19
-100.00
1.94
0.00
3M Company
MMM
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-89.16
7.88
-100.00
2.96
0.00
PPG Industries
PPG
Looks overvalued
Current dividend yield is -100%
below its 5-year average74
-89.20
9.30
-100.00
1.50
0.00
Essex Property Trust, Inc
ESS
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-89.22
7.90
-100.00
2.88
0.00
Cardinal Health Inc.
CAH
Looks overvalued
Current dividend yield is -100%
below its 5-year average67
-89.27
6.83
-100.00
3.90
0.00
Archer-Daniels-Midland Co
ADM
Looks overvalued
Current dividend yield is -100%
below its 5-year average59
-89.59
7.50
-100.00
2.91
0.00
Federal Realty Investment Trust
FRT
Looks overvalued
Current dividend yield is -100%
below its 5-year average55
-89.76
6.70
-100.00
3.54
0.00
Colgate-Palmolive
CL
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-89.81
7.89
-100.00
2.30
0.00
Johnson & Johnson
JNJ
Looks overvalued
Current dividend yield is -100%
below its 5-year average73
-90.02
7.45
-100.00
2.53
0.00
Brown-Forman Corp.
BFB
Looks overvalued
Current dividend yield is -100%
below its 5-year average71
-90.31
8.40
-100.00
1.29
0.00
Realty Income Corp.
O
Looks overvalued
Current dividend yield is -100%
below its 5-year average80
-90.39
5.45
-100.00
4.16
0.00
A.O. Smith
AOS
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-90.48
8.00
-100.00
1.52
0.00
Atmos Energy Corporation
ATO
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-90.61
7.17
-100.00
2.22
0.00
NextEra Energy, Inc
NEE
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-90.94
8.01
-100.00
1.05
0.00
Hormel Foods Corp.
HRL
Looks overvalued
Current dividend yield is -100%
below its 5-year average80
-91.01
7.00
-100.00
1.99
0.00
Wal-Mart Stores
WMT
Looks overvalued
Current dividend yield is -100%
below its 5-year average66
-91.10
7.08
-100.00
1.82
0.00
Leggett & Platt
LEG
Looks overvalued
Current dividend yield is -100%
below its 5-year average68
-91.22
5.20
-100.00
3.58
0.00
General Dynamics
GD
Looks overvalued
Current dividend yield is -100%
below its 5-year average70
-91.35
6.38
-100.00
2.27
0.00
AbbVie Inc.
ABBV
Looks overvalued
Current dividend yield is -100%
below its 5-year average81
-91.58
4.50
-100.00
3.92
0.00
AFLAC Inc
AFL
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-91.67
6.11
-100.00
2.22
0.00
Walgreens Boots Alliance
WBA
Looks overvalued
Current dividend yield is -100%
below its 5-year average68
-91.68
5.14
-100.00
3.18
0.00
Expeditors International of Washington, Inc
EXPD
Looks overvalued
Current dividend yield is -100%
below its 5-year average
-92.23
6.60
-100.00
1.17
0.00
McCormick & Co.
MKC
Looks overvalued
Current dividend yield is -100%
below its 5-year average76
-92.50
6.50
-100.00
1.00
0.00
Genuine Parts
GPC
Looks overvalued
Current dividend yield is -100%
below its 5-year average70
-92.56
4.60
-100.00
2.84
0.00
Consolidated Edison
ED
Looks overvalued
Current dividend yield is -100%
below its 5-year average66
-93.42
2.95
-100.00
3.63
0.00
Kimberly-Clark
KMB
Looks overvalued
Current dividend yield is -100%
below its 5-year average83
-94.21
2.57
-100.00
3.22
0.00
The Clorox Company
CLX
Looks overvalued
Current dividend yield is -100%
below its 5-year average77
-94.35
3.25
-100.00
2.40
0.00
Chevron Corp.
CVX
Looks overvalued
Current dividend yield is -100%
below its 5-year average78
-100.47
-4.90
-100.00
4.43
0.00