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6 Dividend Aristocrat Stocks to Consider

Published Tue, 22 Jun 2010 09:13:17 -0400 on Seeking Alpha

In a continued effort to expand the focus of my site's screens and hypothetical portfolios, this article is a second follow-up to an article written in early April focusing on the S&P 500 Dividend Aristocrats. The S&P 500 Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. The current list has 43 constituents and the entire list is available from S&P or on my site. If an investor's portfolio was large enough he or she could consider purchasing the entire list.Alternatively, an investor could invest in the [[SDY]], the SPDR Dividend ETF, which is a variation of the Aristocrats - it seeks to replicate the “High Yield” Dividend Aristocrats Index. A third alternative is to start with the Aristocrat list and then reduce the list of candidates through screens and/or fundamental analysis. I screened for Aristocrats which had a sustainable payout ratio, a high dividend yield, relatively low debt/equity ratio, and positive return on assets and equity. Using Finviz, which has some of the better screeners and charts available, I screened the Aristocrat list for: Payout Ratio < 80%,Dividend Yield > 3% Return on Assets > 10% Return on Equity > 10%Total Debt/Equity < 1 Below is a list of 6 Aristocrats which are worthy of further consideration, especially if one is seeking yield or seeking to reduce exposure to non-dividend paying companies. All of the companies on the list are familiar names and they were also all on last month's list with the exception of [[JNJ]]. Ticker Company Free Trend Analysis Dividend Yield Payout Ratio Performance (Half Year) Price [[LLY]] Eli Lilly & Co. Here 5.65% 52.87% 0.55% 34.66 [[JNJ]] Johnson & Johnson Here 3.65% 40.66% -6.74% 59.13 [[ABT]] Abbott Laboratories Here 3.64% 47.77% -8.44% 48.3 [[KO]] The Coca-Cola Company Here 3.35% 54.40% -6.35% 52.48 [[MCD]] McDonald's Corp. Here 3.15% 48.79% 14.83% 69.92 [[MHP]] The McGraw-Hill Companies, Inc.Disclosure: No positions... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36
ELI LILLY 111.47   14.0 7.97 2.58 2.32
MCDONALDS 212.15   27.9 7.61 4.64 2.21
ABBOTT LABORATORIES 85.21   52.3 1.63 1.28 1.54


Older articles featuring Coca-cola (KO):
Q2 2020 Dividend Report
64 Reliable Stocks Raising Dividends 40 Years Or More: July's Update
Nicholas Ward's Dividend Growth Portfolio: June 2020 Update
The 24 Safest Dividend Aristocrats Retirees Can Buy In July
Dividend Champion And Contender Highlights: Week Of June 28
The Dividend Race: 10 Top Dividend Stocks Put To The Test
The History Of 50 Dividend Aristocrats And What It Means For Your Retirement
Vanguard Dividend Growth Fund: Grow Earnings In A Reliable Fund
We Need To Talk About Dividend Cuts - They Are A Necessary Evil
Dividend Champion And Contender Highlights: Week Of June 7