AROW - Protect Your Wealth: 5 Dividend Aristocrats To Avoid

2024-05-17 07:00:00 ET

Summary

• Dividend aristocrats are highly stable and well-run blue-chip companies that raise their dividends every year for 25-plus consecutive years.
• However, no stock is a risk-free bond alternative. Even aristocrats can cut their dividends and experience significant losses.
• Over the last 50 years, dividend cutters suffered 91% inflation-adjusted losses.
• It's crucial to avoid dividend cutters when investing, with safety and quality being the most important factors to consider.
• Here are the five highest-risk aristocrats, the most likely to cut their dividends. They're undervalued for a reason, and smart income investors should look at safer alternatives that often yield just as much and offer similar or superior return potential.

Dividend Aristocrats are beloved because they're the quintessential sleep-well-at-night blue chips.

Companies are so well run, stable, and adaptable that they raise their dividends every single year for 25-plus consecutive years.

Through recessions, economic crashes, bear markets, inflation spikes, and interest rates that fluctuate widely, aristocrats are the bluest of blue chips....

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