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 2016. In 2017, this company is expected to earn $6.25 per share, which would represent 9% year-over-year earnings growth. In 2018, the company is expected to grow earnings another 7.36%, to $6.71 per share.
It has a long operating history and a proven track record of creating value for shareholders. In October 2016, the company completed the spin-off of one of its divisions, which represented almost 10% of the company’s 2015 sales.
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 of around 62% and a 7.36% expected growth in the bottom line in 2018, the company is very likely to keep raising its dividend.
- The stock trades at 22.48 times projected 2017 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 2.68%. We continue to stay very bullish on it and maintain our rating of 3.5.