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Dividend Growth Up To 18%: These Aristocrats Deliver During The Pandemic

Published Sat, 21 Nov 2020 08:30:00 -0500 on Seeking Alpha

Seeking AlphaDividend IdeasDividend Growth Up To 18%: These Aristocrats Deliver During The PandemicNov. 21, 2020 8:30 AM ET|| Includes: ABBV, AFL, AOS, GD, ITW, JNJ, LOW, PEPby: Jonathan WeberJonathan Weber Cash Flow KingdomThe Investment Community where "Cash Flow is King"SummaryDividend Aristocrats have proven to be reliable investments, no matter what the macro environment looks like.
Some of them have continued to raise the dividend at an attractive pace during this pandemic.
Take a closer look to find inspirations if you are looking for reliable income, no matter whether the economy is doing well or not.
Article Thesis
The current crisis has thrown the economy off track, and many companies have gotten into trouble and were forced to cut their payouts. Some eliminated their dividends altogether, such as airlines, cruise lines, and so on. Not every company was forced to do so, however, as others continue to reward their shareholders even during troubled times like these. Dividend Aristocrats (NOBL), which have historically outperformed during recessions, are at the forefront of continuing to return cash to their owners. In this article, we will take a look at some of them that raised their payouts this year despite the pandemic.
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Why Dividend Aristocrats Perform During Bad Times
Some business models are more cyclical than others - demand for automobiles or other cyclical consumer goods is much more dependent on the strength of the economy, compared to pharmaceutical or other medical items, for example. Therefore, not all companies are hit the same during times when the economy is in a rough patch.
Naturally, those companies that are less exposed to economic downturns generate more stable, reliable profits and cash flows. This, in turn, allows them to make more consistent payments to shareholders via dividends or buybacks. More resilient, recession-resistant companies can thus achieve a 25-years dividend growth... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ABBVIE 70.83   26.0 2.72 4.28 6.28
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
PEPSICO 137.29   15.2 9.02 3.82 2.81
ILLINOIS TOOL WORKS 159.85   21.5 7.45 4.28 2.54
GENERAL DYNAMICS 189.41   16.8 11.25 4.08 2.17
AFLAC 51.47   12.6 4.10 1.08 2.12
LOWES COMPANIES 113.88   35.6 3.20 2.20 1.91
AO SMITH 51.71   20.8 2.49 0.88 1.77


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