To turn out to be a “Dividend Aristocrat,” a dividend paying firm should accomplish an unimaginable feat: persistently improve shareholder dividends yearly for at the least 20 consecutive years. Corporations with this type of monitor document have a tendency to draw loads of investor consideration — and moreover, “monitoring” funds that observe the Dividend Aristocrats Index should personal them. With all of this demand for shares, dividend development shares can typically turn out to be “absolutely priced,” the place there is not a lot upside to analyst targets.
However we right here at ETF Channel have regarded by the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P Excessive Yield Dividend Aristocrats Index), and located these 5 dividend development shares that truly nonetheless have pretty substantial upside to the typical analyst goal worth 12 months out. Which implies, if the analysts are appropriate, these are 5 dividend development shares that would produce capital good points along with their rising dividend funds.
Within the first desk under, we current the 5 shares. The latest share worth, common analyst 12-month goal worth, and share upside to achieve the analyst goal are introduced.
| Inventory | Latest Value | Avg. Analyst 12-Mo. Goal | % Upside to Goal |
|---|---|---|---|
| AptarGroup Inc. (Image: ATR) | $169.88 | $195.20 | 14.90% |
| Texas Devices Inc. (Image: TXN) | $198.20 | $212.40 | 7.16% |
| Southern Firm (Image: SO) | $88.14 | $93.47 | 6.05% |
| Chubb Ltd (Image: CB) | $285.11 | $301.22 | 5.65% |
| Chevron Company (Image: CVX) | $161.63 | $170.00 | 5.18% |
The typical 12-month analyst targets are solely targets for the share worth nonetheless, and every of those shares are anticipated to pay dividends throughout that holding interval — so the anticipated complete return if these shares attain their analyst targets is definitely the share worth upside seen by the analysts plus the dividend yield shareholders can count on. To ballpark that complete return potential, now we have added the present yield to the analyst goal worth upside, as a way to arrive on the 12-month complete return potential:
| Inventory | Dividend Yield | % Upside to Analyst Goal | Implied Whole Return Potential |
|---|---|---|---|
| AptarGroup Inc. (Image: ATR) | 1.06% | 14.90% | 15.96% |
| Texas Devices Inc. (Image: TXN) | 2.74% | 7.16% | 9.9% |
| Southern Firm (Image: SO) | 3.27% | 6.05% | 9.32% |
| Chubb Ltd (Image: CB) | 1.28% | 5.65% | 6.93% |
| Chevron Company (Image: CVX) | 4.03% | 5.18% | 9.21% |
One other consideration with dividend development shares is simply how a lot the dividend is rising. We regarded up the trailing twelve months value of dividends shareholders of every of the above 5 corporations have collected, after which additionally regarded up the identical quantity for the prior trailing twelve months. This provides us a tough yardstick to see how a lot the dividend has grown, from one trailing twelve month interval to a different.
| Inventory | Prior TTM Dividend | TTM Dividend | % Development |
|---|---|---|---|
| AptarGroup Inc. (Image: ATR) | $1.58 | $1.72 | 8.86% |
| Texas Devices Inc. (Image: TXN) | $5.02 | $5.26 | 4.78% |
| Southern Firm (Image: SO) | $2.78 | $2.86 | 2.88% |
| Chubb Ltd (Image: CB) | $3.38 | $3.54 | 4.73% |
| Chevron Company (Image: CVX) | $6.04 | $6.52 | 7.95% |
These 5 shares are a part of our full Dividend Aristocrats List. The typical analyst goal worth information upon which this text was primarily based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on CB — FREE
Get the latest Zacks research report on CVX — FREE
Dividend Growth Stocks: 25 Aristocrats »
Additionally see:
NXPI RSI
PTE Split History
MLHR shares outstanding history
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
