To turn out to be a “Dividend Aristocrat,” a dividend paying firm should accomplish an unbelievable feat: persistently improve shareholder dividends yearly for no less than 20 consecutive years. Firms with this sort of observe document have a tendency to draw lots 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 “totally priced,” the place there is not a lot upside to analyst targets.
However we right here at ETF Channel have appeared by way of 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 really nonetheless have pretty substantial upside to the typical analyst goal value 12 months out. Which suggests, if the analysts are appropriate, these are 5 dividend development shares that might produce capital good points along with their rising dividend funds.
Within the first desk under, we current the 5 shares. The latest share value, common analyst 12-month goal value, and share upside to succeed in the analyst goal are introduced.
| Inventory | Current Value | Avg. Analyst 12-Mo. Goal | % Upside to Goal |
|---|---|---|---|
| New Jersey Sources Corp (Image: NJR) | $46.14 | $53.80 | 16.60% |
| RenaissanceRe Holdings Ltd. (Image: RNR) | $239.54 | $279.08 | 16.51% |
| J.B. Hunt Transport Providers, Inc. (Image: JBHT) | $166.15 | $188.95 | 13.72% |
| Air Merchandise & Chemical substances Inc (Image: APD) | $310.44 | $351.65 | 13.27% |
| CSX Corp (Image: CSX) | $32.59 | $36.64 | 12.41% |
The common 12-month analyst targets are solely targets for the share value 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 value upside seen by the analysts plus the dividend yield shareholders can anticipate. To ballpark that complete return potential, we’ve got added the present yield to the analyst goal value upside, to be able to arrive on the 12-month complete return potential:
| Inventory | Dividend Yield | % Upside to Analyst Goal | Implied Whole Return Potential |
|---|---|---|---|
| New Jersey Sources Corp (Image: NJR) | 3.90% | 16.60% | 20.5% |
| RenaissanceRe Holdings Ltd. (Image: RNR) | 0.67% | 16.51% | 17.18% |
| J.B. Hunt Transport Providers, Inc. (Image: JBHT) | 1.06% | 13.72% | 14.78% |
| Air Merchandise & Chemical substances Inc (Image: APD) | 2.31% | 13.27% | 15.58% |
| CSX Corp (Image: CSX) | 1.47% | 12.41% | 13.88% |
One other consideration with dividend development shares is simply how a lot the dividend is rising. We appeared up the trailing twelve months price of dividends shareholders of every of the above 5 firms have collected, after which additionally appeared 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 | % Progress |
|---|---|---|---|
| New Jersey Sources Corp (Image: NJR) | $1.62 | $1.74 | 7.41% |
| RenaissanceRe Holdings Ltd. (Image: RNR) | $1.52 | $1.56 | 2.63% |
| J.B. Hunt Transport Providers, Inc. (Image: JBHT) | $1.69 | $1.73 | 2.37% |
| Air Merchandise & Chemical substances Inc (Image: APD) | $7 | $7.08 | 1.14% |
| CSX Corp (Image: CSX) | $0.44 | $0.48 | 9.09% |
These 5 shares are a part of our full Dividend Aristocrats List. The common analyst goal value information upon which this text was based mostly, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
