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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 51.39   32.7 1.57 1.60 3.07
JOHNSON & JOHNSON 132.07   21.9 6.03 3.80 2.87
ELI LILLY 106.79   17.0 6.28 2.58 2.41
SPDR S&P DIVIDEND ETF 101.59   0.0 0.00 2.42 2.37
MCDONALDS 215.91   28.6 7.54 4.64 2.17
ABBOTT LABORATORIES 87.49   53.7 1.63 1.28 1.49


Older articles featuring Coca-cola (KO):
The Coca-Cola Co: One of the Best Dividend Stocks in the World
Omega Healthcare Investors Inc: This High Dividend Stock Yields 7%
My Dividend Growth Portfolio: Q2 2019 Summary
My Dividend Growth Portfolio At The Half Year Mark
The Snowball Effect: How To Compound Your Wealth With Dividend Growth Stocks
The Dividend Aristocrats Ranked By Quality Score
Jobs Day, Tesla Deliveries And Dazzling Dividends (Stocks To Watch Podcast)
Dividend Champion And Contender Highlights: Week Of June 23
What Is It To Be A Canadian Dividend Investor?
Blue Chip Dividend Aristocrats Are Beating The Market In A Bull Run