2024-04-12 07:00:00 ET
Summary
- Dividend aristocrats have underperformed due to an overweight in utilities, but recent trends suggest a potential rally.
- Certain dividend aristocrats are very well positioned for the coming AI data center boom. More than $340 billion in spending has been reported from just four well-known companies.
- Cash inflow into high-yield blue chips, economic growth, and improved EPS could lead to a multi-year earnings and total returns boom.
- These aristocrats offer low-risk yields as high as 9.4%, 12% to 13% long-term expected income growth and total returns, and 40% upside to fair value potential in the next year.
- Short-term pain caused by rising interest rates is a potential opportunity for long-term investors who remember that good economic news is always good news for long-term investors. Only traders and speculators should worry about short-term rate fluctuations.
My readers love dividend aristocrats, but what's not to love? You have some of the world's highest quality, most dependable, best-run blue chips that have been raising their dividends for 25-plus consecutive years.
That's through at least three recessions, two 50%-plus market crashes, and the pandemic crash, not to mention the Great Inflation of 2022, the worst in 42 years.
If you're anything like me, you love low-risk, dependable income that rolls in like clockwork, regardless of the economy and stock market. That's where dividend aristocrats shine brightest....
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10 Dividend Aristocrat Bargain Buys Yielding As Much As 9.4%