9 Dividend Blue Chips That Can Make You Rich

Summary

• I've completed the 2020 update for all the dividend aristocrats. As a group they are 10% overvalued for 2020 though should still outperform the broader market over time.
• CAH, NUE, TROW, CAT, and LOW represent the highest return potentials on offer from Aristocats today, all capable of delivering double-digit, long-term returns.
• Of those, TROW and CAT are my top recommendations, because of reasonable to attractive valuations and strong growth potential without the growth uncertainty that NUE and CAH face.
• XOM, CB, LOW, CAT and TGT are the aristocrats with the lowest PEG ratios. XOM and CAT are good to great buys right now, as long as you're comfortable with their cyclical business models.
• SHW and LOW are the fastest growing aristocrats, with LOW a reasonable buy at $112 and SHW at $435. LOW is a pullback away from that price, while SHW will require a 26% bear market. Both represent excellent watchlist stocks for this year and decade.
• Looking for more stock ideas like this one? Get them exclusively at The Dividend Kings. Get started today »

Editor's Note: This article was updated on 1/17/2020 to reflect the correction of a few calculation errors.

(Source: imgflip)

I'm breaking out the intro for the weekly series into a revised introduction and reference article on the 3 rules for using margin safely and profitably (which will no longer be included in those future articles).

To minimize reader confusion, I will be providing portfolio updates on a rotating tri-weekly schedule. This means an update every three weeks on:

• 2 Exciting New Companies I Just Bought For My Retirement Portfolio (where I keep 100% of my life savings).
• The best dividend Kings and Aristocrats to buy for the next decade (this article)
• My "What I'm Buying Next" series, which explains what companies are on my immediate buy watchlist from which I make all weekly retirement portfolio buys.

I've also broken out the "Why Valuation ALWAYS Matters" intro to this series.

I've Updated All The Dividend Aristocrats For 2020

I'm in the process of updating the entire Dividend Kings Master List of dividend growth stocks worth owning at the right price.

In a Tuesday 15-hour marathon session I updated all 57 for

• quality
• dividend safety
• growth profiles
• 2020 fair value
• good buy prices
• potential trim/sell prices
• 5-year CAGR total return potential ranges
• dividend growth streaks
• 5-year CAGR dividend growth rates
• long-term analyst consensus growth rates
• forward P/E ratios
• PEG ratios

Here are the results.

Fundamental Stats

• Average quality score: 9.7/11 (basically SWAN level) - three companies got quality upgrades
• Average dividend safety: 4.7/5 (very safe)
• Average yield: 2.4% vs. 1.8% S&P 500 and 2% most dividend growth ETFs
• Average valuation: 10% overvalued (vs. 18% overvalued for 2019) vs. 14% to 19% for S&P 500
• Average dividend growth streak: 43 years
• Average 5-year dividend growth rate: 9% CAGR
• Average long-term FactSet

Analyst’s Disclosure:I am/we are long LOW, CAT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Dividend Kings owns CAT, LOW, TROW and XOM in our portfolios.