To turn into a “Dividend Aristocrat,” a dividend paying firm should accomplish an unbelievable feat: constantly improve shareholder dividends yearly for at the least 20 consecutive years. Corporations with this sort of observe report have a tendency to draw a whole lot of investor consideration — and moreover, “monitoring” funds that comply with the Dividend Aristocrats Index should personal them. With all of this demand for shares, dividend progress shares can generally turn into “absolutely priced,” the place there is not a lot upside to analyst targets.
However we right here at ETF Channel have regarded via 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 progress shares that really nonetheless have pretty substantial upside to the typical analyst goal worth 12 months out. Which implies, if the analysts are right, these are 5 dividend progress shares that might produce capital positive factors 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 succeed in the analyst goal are offered.
| Inventory | Latest Value | Avg. Analyst 12-Mo. Goal | % Upside to Goal |
|---|---|---|---|
| S&P International Inc (Image: SPGI) | $503.94 | $611.79 | 21.40% |
| Sonoco Merchandise Co. (Image: SON) | $46.75 | $56.71 | 21.31% |
| Lowe’s Corporations Inc (Image: LOW) | $232.89 | $280.75 | 20.55% |
| New Jersey Sources Corp (Image: NJR) | $48.50 | $54.20 | 11.75% |
| Exxon Mobil Corp (Image: XOM) | $115.80 | $129.33 | 11.69% |
The common 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 anticipate. To ballpark that complete return potential, we’ve 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 |
|---|---|---|---|
| S&P International Inc (Image: SPGI) | 0.76% | 21.40% | 22.16% |
| Sonoco Merchandise Co. (Image: SON) | 4.45% | 21.31% | 25.76% |
| Lowe’s Corporations Inc (Image: LOW) | 1.98% | 20.55% | 22.53% |
| New Jersey Sources Corp (Image: NJR) | 3.71% | 11.75% | 15.46% |
| Exxon Mobil Corp (Image: XOM) | 3.42% | 11.69% | 15.11% |
One other consideration with dividend progress shares is simply how a lot the dividend is rising. We regarded up the trailing twelve months price 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 offers 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 |
|---|---|---|---|
| S&P International Inc (Image: SPGI) | $3.61 | $3.69 | 2.22% |
| Sonoco Merchandise Co. (Image: SON) | $2.04 | $2.08 | 1.96% |
| Lowe’s Corporations Inc (Image: LOW) | $4.35 | $4.55 | 4.60% |
| New Jersey Sources Corp (Image: NJR) | $1.65 | $1.77 | 7.27% |
| Exxon Mobil Corp (Image: XOM) | $3.72 | $3.88 | 4.30% |
These 5 shares are a part of our full Dividend Aristocrats List. The common analyst goal worth knowledge upon which this text was based mostly, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on NJR — FREE
Get the latest Zacks research report on XOM — FREE
Dividend Growth Stocks: 25 Aristocrats »
Additionally see:
DDC Historical Stock Prices
RJA Options Chain
PERY Options Chain
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
