Dividend Champions/Aristocrats are the go-to dividend paying stocks for prudent investors desirous of a safe, predictable and growing stream of income on the common stock portion of their retirement portfolios. Here are 10 undervalued Dividend Champions for 2016: be greedy when others are fearful!
As most investors are aware, in order to be classified as a Dividend Champion/Aristocrat a company must meet the stern test of consecutively increasing their dividend for 25 years or longer. Of all the dividend paying stocks in the universe, only a select few make these prestigious lists…Of the more than 50 Dividend Aristocrats, and more than 100 Dividend Champions, I only found 10 that I considered currently attractive based on valuation… Here they are:
I present my 10 fairly valued Dividend Champion/Aristocrats below in order of highest yield to lowest… based on earnings for 2016. [To read the complete article of F.A.S.T. Graphs™ portfolio review lists, complete with detailed analysis of each, please go HERE.]
- AT&T, Inc. (T)
- Emerson Electric Company (EMR)
- AbbVie Inc. (ABBV)
- Wal-Mart stores Inc. (WMT)
- Archer- Daniels- Midland Company (ADM)
- Target Corp. (TGT)
- T. Rowe Price Group, Inc. (TROW)
- AFLAC Incorporated (AFL)
- Pentair plc (PNR)
- Franklin Resources, Inc. (BEN)
Bonus: 5 Stalwarts Fairly Valued Based On Cash Flows
These 5 bonus companies are quintessential examples of highly rated blue-chips that often commands a premium valuation based on earnings.
- HCP, Inc. (HCP)
- Johnson & Johnson (JNJ)
- 3M Company (MMM)
- PepsiCo, Inc. (PEP)
- Procter & Gamble (PG)
Summary and Conclusions
I want to be clear that these are not necessarily my favorite or what I consider best valued dividend growth stocks. Instead, these are specifically what I consider the best or most fairly and attractively valued Dividend Aristocrats or Dividend Champions. Each of these companies has increased their dividends for 25 consecutive years or longer. Therefore, they all fall into the elite group of dividend growth stocks with long histories and legacies of dividend growth.
Consequently, I offer these 10 Dividend Aristocrats and Champions, and the 5 bonus selections based on cash flow for consideration by those investors most concerned with safety and dividend growth. In other words, these are not necessarily companies that will produce above-average long-term total returns.
On the other hand, I believe each of these companies represent a high level of safety and the opportunity to produce above-average current dividend income and long-term dividend growth. Therefore, these suggestions are offered for those investors desirous of achieving the highest long-term total accumulated amounts of dividend income from safe blue-chip dividend paying stocks.
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The original article was written by (FastGraph.com) and is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter in a slightly edited ([ ]) and abridged (…) format to provide a fast and easy read.]
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