TGT - 10 Dividend Aristocrat Bargain Buys: High Yields And Low PEG Ratios

2024-07-12 07:00:00 ET

Summary

• Stocks keep setting record highs, with valuations becoming steadily more challenging. But even at record highs, there are plenty of blue-chip bargains to buy.
• Free cash flow yield is a gold standard of valuation. It combines yield and quality and, if combined with growth, creates the ultimate PEG ratio, popularized by Peter Lynch.
• This article highlights 10 high-yield dividend aristocrats with the lowest PEG ratios, 6X better than the aristocrats and 3X better than US stocks.
• These 10 aristocrats offer a 4.1% yield today, 13% long-term income growth potential in the future, are 20% historically undervalued, and have 32% upside return potential in the next year.
• If you're looking for smart and low-risk places to invest new money today, these 10 high-yield, low PEG ratio aristocrats are potentially wonderful ways to harness global capitalism.

Even though record highs are a normal, healthy part of stock investing, they can make some investors nervous. For example, "I can't buy at record highs; stocks will fall the moment I do."

The first half of 2024 was the 15th best first half in stock market history since 1928.

It was the best presidential election year return ever.

But as I always like to remind readers, it's always and forever a market of stocks, not a stock market.

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