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Ranking The Dividend Aristocrats By Risk-Adjusted Returns

Published Thu, 20 Jul 2017 15:15:45 -0400 on Seeking Alpha

The goal of any investor is to either:
Maximize returns given a fixed level of risk Minimize risk given a fixed level of desired returns Investors in the accumulation phase tend to fall under the first constraint, while retired investors invest with the second criterion in mind.
There is a third approach: maximizing risk-adjusted returns.
This means that an investor has no cap on the amount of risk they will assume, as long as they are adequately compensated for this risk by excess investment performance.
So how do we measure risk-adjusted returns?
The Sharpe Ratio is the generally accepted metric used to measure risk-adjusted returns.
Finding stocks with strong prospects for above-average risk-adjusted returns can be difficult. One way to identify these businesses is by looking at their historical risk-adjusted returns.
With that in mind, this article will use various time periods to analyze the risk-adjusted performance of the Dividend Aristocrats, a group of high-quality dividend stocks with 25+ years of consecutive dividend increases.
1-Year Risk-Adjusted Returns A 1-year time period is generally too short to identify any meaningful investment trends.
However, this analysis still calculates 1-year risk-adjusted returns for Dividend Aristocrats, as there are important observations that can be made from this time period.
First, it’s important to understand the metric... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CARDINAL HEALTH 48.48   10.8 4.51 1.92 4.01
CHEVRON 121.42   15.7 7.72 4.76 3.91
FRANKLIN RESOURCES 29.79   11.0 2.70 1.04 3.66
ARCHER-DANIELS-MIDLAND 41.45   17.8 2.33 1.40 3.47
3M 170.58   20.6 8.28 5.76 3.41
NUCOR 53.69   7.6 7.09 1.60 3.04
EMERSON ELECTRIC 64.71   18.4 3.52 1.96 3.02
FEDERAL REALTY INVESTMENT TRUST 135.76   40.4 3.36 4.20 3.00
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
T. ROWE PRICE GROUP 118.12   14.9 7.95 3.04 2.58
ILLINOIS TOOL WORKS 159.85   21.5 7.45 4.28 2.54
TARGET 108.94   18.0 6.04 2.64 2.43
MCDONALDS 212.15   27.9 7.61 4.64 2.21
GENERAL DYNAMICS 189.41   16.8 11.25 4.08 2.17
AFLAC 51.47   12.6 4.10 1.08 2.12
DOVER 99.67   24.4 4.08 1.96 2.02
CINCINNATI FINANCIAL 113.24   15.3 7.41 2.24 2.00
GRAINGER, W.W. 293.60   20.0 14.65 5.76 1.98
LOWES COMPANIES 113.88   35.6 3.20 2.20 1.91
WAL-MART STORES 116.92   26.3 4.44 2.12 1.83
MCCORMICK 157.81   30.8 5.13 2.28 1.46
BECTON DICKINSON 262.15   92.0 2.85 3.08 1.18
SHERWIN-WILLIAMS 538.95   43.3 12.44 4.52 0.87
CINTAS 246.51   30.9 7.98 2.05 0.82
BARD, C.R. 333.19   43.9 7.59 1.04 0.31

CARDINAL HEALTH - CAH
CARDINAL HEALTH - CAH  


Older articles featuring Cardinal Health (CAH):
December Dividend Aristocrats Savor 6 Super Stocks
The Retirees' Dividend Portfolio: John And Jane's November Taxable Account Update
Dividend Income Summary: Bert's October 2020 Summary
Dividend Income Update October 2020
Blue Chip DRiP: October Dividend Income Update
65 November Dividend Aristocrats
Buy These 8 Dividend-Paying Companies
My Dividend Growth Portfolio - Q3 2020 Summary
The Retirees' Dividend Portfolio: John And Jane's September Taxable Account Update
Dividend Champion And Contender Highlights: Week Of October 11

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