Three Dividend Aristocrats at Attractive Valuations

 |  Includes: BMS, TEG, TGT
by: Scott's Investments

Earlier last month I began profiling various Dividend Aristocrats that are worthy of further investigation. For this list, I looked for Dividend Aristocrats trading at attractive valuations using the free screening service at Finviz. The list of attractively valued aristocrats continues to shrink as the overall market climbs higher. Increasingly I find deep bargains among widely followed companies nearly impossible to find.

The list looks for Dividend Aristocrats which meet the following criteria:

  • Forward P/E < 15
  • Price/Free Cash Flow < 15
  • Price/Sales < 1
  • Long Term Debt/Equity < 1

One name that continues to appear on my lists is Integrys Energy Group (NYSE:TEG). It weathered two analyst downgrades in March and has continued a steady climb higher. The chart could not be prettier for investors in TEG:

click to enlarge

The trend in TEG could turn at any point, however, a yield near 5.5% from a company with a history of raising dividends is still enticing for yield hungry investors. As an alternative, an investor could hedge positions -- a strategy I detailed here or use more active trading as I detailed here -- if they are still worried about market weakness.

The other two names on the list are Target (NYSE:TGT) and Bemis (NYSE:BMS).

Ticker Company Industry Trend Analysis Forward P/E P/S Dividend Yield LT Debt / Equity
BMS Bemis Co. Inc. Packaging & Containers Here 13.27 0.97 2.94% 0.68
TEG Integrys Energy Group, Inc. Diversified Utilities Here 14.9 0.51 5.43% 0.82
TGT Target Corp. Discount, Variety Stores Here 13.53 0.7 1.17% 0.99
Click to enlarge

Disclosure: None