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Dividend Aristocrats are companies that have increased their dividends for 25 consecutive years. Below, Dividend.com analyzes 7 such stocks that are currently yielding over 3%. We also analyze their relative strength in terms of stock price performance, payout ratios for dividend reliability, valuation and expected 2017 earnings growth estimates.
This natural gas distribution company is currently yielding 3.34% and has consecutively increased its dividends for more than 60 years. The stock is up 10.61% in 2016 so far. With a 2016 EPS estimate of $2.16, the stock currently has a payout ratio of 86% and it’s estimated that the company is likely to give a 2017 EPS of $2.27, resulting in a 5% growth estimate. The stock is currently trading at its 52-week high and is trading at a valuation of 23 times 2016 earnings.
With an annual payout of $2.68, this consumer goods behemoth is currently yielding 3.26%. PG has increased its dividend for 59 years in a row and is looking very healthy as its estimated EPS for 2017 is expected to grow 10% from $3.60 to $3.99. The 2016 payout ratio for PG is 74%. The stock is up 3.5% for 2016 so far and is currently trading at a valuation of 22 times 2016 earnings.
Another company that’s a dividend aristocrat two times over and is yielding more than 3% is Emerson Electric. The stock is up 11.5% so far in 2016 and is yielding 3.56%. 2016 earnings estimates for EMR are $3.07, while 2017 estimates are at $3.18, giving it a modest earnings growth estimate of 3.58%. The stock currently has a payout ratio of 61% based on 2016 earnings and is trading at a PE of 18.
Vectren Corporation is a diversified utilities company that has increased its dividend for 56 consecutive years and is currently yielding 3.21%. Its 2016 earnings estimates are $2.52, while its 2017 estimates are $2.72, giving it a modest growth estimate of 7.94%. Its payout ratio is 63% based on 2016 earnings. The stock is up a solid 17% for 2016 as it trades at a PE of 19.
The world’s largest beverage company has consecutively increased its dividend for 53 years and is currently yielding at 3.09%. The stock is up 5.5% so far in 2016. Its 2016 EPS estimate is $1.93, while its 2017 EPS estimate is $2.03, resulting in a growth estimate of 5.18%. Its current payout ratio based on 2016 earnings is 72%. The stock is slightly expensive as it trades at 23 PE.
This tobacco company is currently yielding 3.79% and has consecutively increased its dividend for 44 years. The stock is flat this year as it’s down only -0.2%. UVV is a small cap company ($1.2 billion) and hence we don’t have a lot of analysts tracking it, which has resulted in non-availability of earnings estimates for 2016 or 2017 resulting in no growth or PE estimates.
AbbVie is a major drug manufacturer that is currently yielding 3.65%. The company has raised its dividend for 43 consecutive years. The stock is up 5.5% for 2016. Earnings estimates for 2016 are at $5.01, while 2017 estimates stand at $5.99 resulting in a growth estimate of 19%. The stock is trading at just 12 PE and has a very healthy payout ratio of 45%, which leaves room for the company to grow its dividend in years to come.
This select list of companies are yielding higher than the Dow 30 and have outperformed in their respective industries. Single digit growth estimates should be viewed positively for dividend stocks, along with payouts in the mid 50’s, that leave room for the company to grow its dividend next year.
You can find a complete list of all stocks that have raised their dividends for more than 25 consecutive years here.