Dividend Aristocrats are stocks from the S&P 500 that have raised dividends for a period of more than 25 consecutive years. Standard & Poor’s created an index for such stocks consisting of 42 large capitalized blue chip stocks. Many of them are very expensive in terms of valuation. Some yielding around one percent others have a P/E ratio of more than 20 or a slow growth. But who are the real cheap stocks from the S&P 500 Dividend Aristocrats?
I screened 42 Dividend Aristocrats by cheapest price ratios. As criteria, I decided to select a forward price to earnings ratio of less than 15 and a price to sales and price to book ratio of less than 2. Finally the dividend yield should be above 2 percent. Here are the cheapest stocks sorted by dividend yield:
1. Bemis Company (BMS) is acting within the packaging and containers industry. The company has a market capitalization of $3.2 billion, generates revenues in an amount of $5.2 billion and a net income of $217.4 million. It follows P/E ratio is 15.3 and forward price to earnings ratio 12.7, Price/Sales 0.6 and Price/Book ratio 1.7. Dividend Yield: 3.1 percent. The company raised dividends for 28 consecutive years.
2. AFLAC (AFL) is acting within the accident and health insurance industry. The company has a market capitalization of $19.6 billion, generates revenues in an amount of $20.9 billion and a net income of $1.8 billion. It follows P/E ratio is 11.0 and forward price to earnings ratio 6.4, Price/Sales 0.9 and Price/Book ratio 1.6. Dividend Yield: 2.9 percent. The company raised dividends for 28 consecutive years.
3. Stanley Black & Decker (SWK) is acting within the machine tools and accessories industry. The company has a market capitalization of $10.3 billion, generates revenues in an amount of $9.8 billion and a net income of $615.6 million. It follows P/E ratio is 16.9 and forward price to earnings ratio 10.1, Price/Sales 1.1 and Price/Book ratio 1.4. Dividend Yield: 2.7 percent. The company raised dividends for 44 consecutive years.
4. Lowe's Companies (LOW) is acting within the home improvement stores industry. The company has a market capitalization of $27.1 billion, generates revenues in an amount of $48.8 billion and a net income of $2.0 billion. It follows P/E ratio is 14.5 and forward price to earnings ratio 12.1, Price/Sales 0.6 and Price/Book ratio 1.6. Dividend Yield: 2.6 percent. The company raised dividends for 49 consecutive years.
5. The Chubb Corporation (CB) is acting within the property and casualty insurance industry. The company has a market capitalization of $18.1 billion, generates revenues in an amount of $13.5 billion and a net income of $2.1 billion. It follows P/E ratio is 9.1 and forward price to earnings ratio 10.5, Price/Sales 1.3 and Price/Book ratio 1.2. Dividend Yield: 2.5 percent. The company raised dividends for 46 consecutive years.
6. Archer Daniels Midland (ADM) is acting within the farm products industry. The company has a market capitalization of $18.6 billion, generates revenues in an amount of $80.7 billion and a net income of $2.0 billion. It follows P/E ratio is 8.9 and forward price to earnings ratio 8.2, Price/Sales 0.2 and Price/Book ratio 1.0. Dividend Yield: 2.3 percent. The company raised dividends for 36 consecutive years.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
