To change into 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 type of observe file have a tendency to draw quite a 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 change into “absolutely priced,” the place there is not a lot upside to analyst targets.
However we right here at ETF Channel have seemed 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 progress shares that truly 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 progress shares that might produce capital good points along with their rising dividend funds.
Within the first desk beneath, 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 | Latest Value | Avg. Analyst 12-Mo. Goal | % Upside to Goal |
|---|---|---|---|
| Polaris Inc (Image: PII) | $65.22 | $79.92 | 22.53% |
| Colgate-Palmolive Co. (Image: CL) | $93.91 | $106.09 | 12.97% |
| McCormick & Co Inc (Image: MKC) | $77.13 | $85.85 | 11.30% |
| Lincoln Electrical Holdings, Inc. (Image: LECO) | $203.30 | $223.00 | 9.69% |
| California Water Service Group (Image: CWT) | $51.08 | $54.50 | 6.70% |
The typical 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 count on. To ballpark that complete return potential, we now have added the present yield to the analyst goal value upside, with a view to arrive on the 12-month complete return potential:
| Inventory | Dividend Yield | % Upside to Analyst Goal | Implied Whole Return Potential |
|---|---|---|---|
| Polaris Inc (Image: PII) | 4.05% | 22.53% | 26.58% |
| Colgate-Palmolive Co. (Image: CL) | 2.13% | 12.97% | 15.1% |
| McCormick & Co Inc (Image: MKC) | 2.33% | 11.30% | 13.63% |
| Lincoln Electrical Holdings, Inc. (Image: LECO) | 1.48% | 9.69% | 11.17% |
| California Water Service Group (Image: CWT) | 2.19% | 6.70% | 8.89% |
One other consideration with dividend progress shares is simply how a lot the dividend is rising. We seemed up the trailing twelve months price of dividends shareholders of every of the above 5 corporations have collected, after which additionally seemed 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 | % Development |
|---|---|---|---|
| Polaris Inc (Image: PII) | $2.59 | $2.63 | 1.54% |
| Colgate-Palmolive Co. (Image: CL) | $1.91 | $1.98 | 3.66% |
| McCormick & Co Inc (Image: MKC) | $1.56 | $1.68 | 7.69% |
| Lincoln Electrical Holdings, Inc. (Image: LECO) | $2.56 | $2.84 | 10.94% |
| California Water Service Group (Image: CWT) | $1.04 | $1.12 | 7.69% |
These 5 shares are a part of our full Dividend Aristocrats List. The typical 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 writer and don’t essentially replicate these of Nasdaq, Inc.
