PBCTP - Only 7 Dividend Aristocrats May Have What It Takes To Survive An Inflation-Driven Rate Increase

• Investors have flocked to dividend growth stocks ever since the Federal Reserve began suppressing interest rate via QE.
• Dividend Aristocrats have been among those most favored, but their popularity has led to their yields dropping to levels that would not be competitive after a modest rise in rates.
• Screening the Dividend Aristocrats for reasonable P/E ratios and 5-year EPS growth rates above 10% turns up only 7 stocks likely to continue to appeal to investors.
• Even the few otherwise attractive Dividend Aristocrats have high levels of debt relative to their capitalization.
• Buying almost all Dividend Aristocrats is likely to lead to serious price deterioration that will take years for these stocks to grow out of.

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