AMCR - 4 Dividend Aristocrats To Buy In July And 4 To Watch
2024-07-09 09:42:14 ET
Summary
- "Dividend Aristocrats... in the S&P 500 Index… have raised their annual payouts every year for at least 25 consecutive years."--Kiplinger.com/Investing.
- 67 Aristocrats, screened as of July 5, 2024, represented all eleven Morningstar Sectors. Broker estimated-top-ten net-gains ranged 16.43%-22% topped-by KVUE & GPC.
- By yield, O topped-all Aristocrats. Top-ten Yields from IBM, SJM, SWK, CVX, TROW, FRT, KVUE, AMCR, BEN, & O, averaged 4.58%.
- Aristocrats top ten, by broker-estimated target-prices, SYY, NDSN, NUE, BDX, MCD, KVUE, WST, PPG, GPC, and ALB averaged 25.78%.
- $5k invested July 5 in the five top-yield, lowest-priced, Dogs of the Aristocrats showed 13.27% more net-gain than from $5k invested in all top ten. The Little (lower-priced) July S&P500 Dividend Aristocrats led the pack by over one and one-quarter lengths.
Foreword
As a supplement to this article, please note that Kiplinger has published an on-line slide-show detailing the latest 2024 S&P Dividend Aristocrats. The article, entitled The S&P 500 Dividend Aristocrats , is by Dan Burrows, a contributing editor:
4 Dividend Aristocrats To Buy In July And 4 To Watch
“S&P Dow Jones Indices rebalances the S&P 500 Dividend Aristocrats every January, the Aristocratic population now stands at 67.
There were two changes to the Dividend Aristocrats announced in January 2024. Walgreens Boots Alliance (WBA) was removed from the index after the pharmacy chain slashed its dividend by almost half in late 2023. WBA had raised its dividend annually without fail for almost a half-century before the cut.
At the same time, industrials supplier Fastenal (FAST) was added to the Dividend Aristocrats in recognition of its quarter-century streak of annual dividend hikes.
Other changes to the Dividend Aristocrats over the past year include the removal of V.F. Corp. (VFC) and the addition of Kenvue (KVUE), which was spun off from fellow Aristocrat Johnson & Johnson (JNJ).
As for more recent developments, 3M's (MMM) time as a Dividend Aristocrat is set to come to an end. The company spun off its Solventum (SOLV) healthcare business to shareholders in April. The latter isn't a quarterly dividend payer, which means MMM shareholders will see their total take in dividends from these MMM-related securities decline sharply.
As we'll see below, 3M had raised its payout for 64 consecutive years. The dividend cut means this Dow Jones stock is on the Aristocrats chopping block when rebalancing time rolls around in January.
Happily, it's unusual to see a long-time Aristocrat fall. That's because the Dividend Aristocrats have been among the best dividend stocks to buy for reliable income growth over the past several decades. In other words, it makes them a good place to start if you're looking to add dividend battleships to your long-term portfolio.
Alternatively, investors can gain exposure to every stock in the S&P 500 Dividend Aristocrats index via the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). The exchanged-traded fund with $11.6 billion in assets under management has an expense ratio of 0.35%.
Take a look at all the stocks in the S&P 500 Dividend Aristocrats index in the tables below.“