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. The Dividend Aristocrats list currently contains 53 companies diversified across the consumer staples, industrials, materials, health care, financials and consumer discretionary sectors. In 2018 the Dividend Aristocrats (-2.73%) also outperformed the S&P500 (-4.38%) by 1.65%. To see what 2019 could bring we looked at the upside based on analyst price targets.
Top 10 Dividend Aristocrats based on 12 months price target
Based on the average analyst target price for the next 12 months, we identified ten dividend aristocrats growth stocks that actually still have a fairly substantial 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 | 1yr Target Est. | % Upside to Target |
|---|---|---|---|---|---|
| Archer-Daniels-Midland Company | ADM | Consumer Defensive | $43.72 | $54.00 | 23.51% |
| Chevron Corporation | CVX | Energy | $113.22 | $137.79 | 21.70% |
| Stanley Black & Decker Inc. | SWK | Industrials | $120.58 | $146.50 | 21.50% |
| Nucor Corporation | NUE | Basic Materials | $58.10 | $70.43 | 21.22% |
| AbbVie Inc. | ABBV | Healthcare | $80.54 | $97.18 | 20.66% |
| A.O. Smith Corporation | AOS | Industrials | $47.60 | $56.89 | 19.52% |
| Lowe's Companies Inc. | LOW | Consumer Cyclical | $93.82 | $111.86 | 19.23% |
| General Dynamics Corporation | GD | Industrials | $171.22 | $201.63 | 17.76% |
| Medtronic plc. | MDT | Healthcare | $87.02 | $101.71 | 16.88% |
| Air Products and Chemicals Inc. | APD | Basic Materials | $160.91 | $187.45 | 16.49% |
An interesting list given the upside potential between 16% en 23%, at least according to the analysts. If you are interested to see all Dividend Aristocrats see the link below.
Top 10 Dividend Aristocrats expected total return
Looking at the average analyst target price for the next 12 months is interesting, but is only based on share price. Another interesting aspect of the dividend aristocrats is for sure the dividends. So the expected total return could be estimated on the scenario that these stocks reach their analyst targets share price (upside seen by the analysts) plus the dividend yield shareholders can expect. For the latter element we added the current yield.
This makes the follow top-10 list.
| Company | Price | Dividend yield (%) | 1yr Target Est. | % Upside to Target including dividend |
|---|---|---|---|---|
| Archer-Daniels-Midland Company | $43.72 | 3.06% | $54.00 | 26.58% |
| AbbVie Inc. | $80.54 | 5.31% | $97.18 | 25.97% |
| Chevron Corporation | $113.22 | 3.96% | $137.79 | 25.66% |
| Nucor Corporation | $58.10 | 2.75% | $70.43 | 23.98% |
| Stanley Black & Decker Inc. | $120.58 | 2.19% | $146.50 | 23.69% |
| A.O. Smith Corporation | $47.60 | 1.85% | $56.89 | 21.37% |
| Lowe's Companies Inc. | $93.82 | 2.05% | $111.86 | 21.27% |
| AT&T Inc. | $30.66 | 6.65% | $34.96 | 20.68% |
| Exxon Mobil Corporation | $71.72 | 4.57% | $82.99 | 20.29% |
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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