As of today, Dividend.com is adding a chemical company to the Best Dividend Stocks list. This company has a 75-year operating history and is on the exclusive Dividend Aristocrat list – only companies in the S&P 500 that have raised their dividend for 25 consecutive years make the list.
This chemical company produced almost $10 billion of revenue in 2015. In 2016, this company is expected to earn $7.42 per share, which would represent 13% year-over-year earnings growth. In 2017, the company is expected to grow earnings another 9.8%, to $8.15 per share.
It has a long operating history and a proven track record of creating value for shareholders. Going forward, a positive catalyst will be a spin off that the company is planning to do, which represents 20% of its business.
To summarize, here are 4 reasons why you should own this stock:
- You can get exposure to a chemical company that is a Dividend Aristocrat.
- With a payout ratio in the mid-40s, and a 9.8% expected growth in the bottom line in 2017, the company is very likely to keep raising its dividend.
- The stock trades at 19.7 times projected 2016 earnings, which is fair valuation according to us given its stellar record of paying dividends.
- It has operations in over 50 countries, serves more than 30 industries and has 170,000+ customers worldwide.
Soft Removal of a Diversified Food Company
We are removing a diversified food company from the Best Dividend Stocks list that we added back in 07/07/2015 and has since given a return of 68%, excluding dividends in the short span of less than one year. Even though the stock has run up so much in such a short time, it still yields more than 3%. We continue to stay very bullish on it and maintain our rating of 3.5.