The 13 Best Dividend Aristocrats To Buy In This Uncertain Economy

Summary

• Last week the S&P 500 had its best week since 1974, roaring higher by 12%. That defies the mounting economic damage the US is facing and plummeting earnings expectations.
• Many believe the market has been crazy hot lately as multiples are starting to outpace steadily-deteriorating fundamentals.
• When facing the worst recession in 75 years, income investors should trust the bluest of blue chips, such as dividend aristocrats and kings for the equity portfolio of their portfolios.
• While no dividends are ever 100% guaranteed, aristocrats are some of the best dividend stocks you can buy right now, even with the worst recession in 75 years bearing down on us.
• They are not guaranteed to not fall in the coming weeks, but as part of a diversified and prudently-risk managed portfolio, with proper cash/bond allocations, they can make excellent additions to a bunker dividend growth portfolio.
• Looking for more stock ideas like this one? Get them exclusively at The Dividend Kings. Get started today »

(Source: Imgflip)

Many investors think the market is acting a bit crazy right now.

(Source: Ploutos)

Last week we saw the S&P 500 soar 12% in four days, the 8th best week in market history.

(Source: Ycharts)

Since bottoming (so far) on March 23 (at -35% from the peak, intra-day) the broader market surged 25% in a matter of two weeks.

During periods of high uncertainty, investors are often balanced on the knife-edge between fear and fear of missing out. That's what causes both panic selling and panic buying.

(Source: Brian Gilmartin)

Earnings expectations have fallen off a cliff in recent weeks, as one would expect when about 30% of the US economy (according to the Bureau of Labor Statistics) has shutdown.

Since the start of the year, the 2020 consensus EPS forecast has fallen by about 18% and individual analyst estimates for earnings this year range from about -35% to -15%.

The economic news coming in each week is likely to steadily get worse.

(Source: MarketWatch)

Retail sales last month fell by 8.7%, almost three times the previous record set back in November 2008.

(Source: MarketWatch)

New unemployment claims have reached such proportions as to boggle the imagination, 17 million in three weeks.

The Empire State Index, which measures North East manufacturing, fell a record 57 points last month.

(Source: Ycharts)

Manufacturing has never been in worse shape. Severely depressed demand, supply disruptions, and extremely high uncertainty will keep manufacturing on an extremely weak trajectory in the near term.” -Oren Klachkin, Oxford Economics

The blue chip economist consensus, consisting of the 16 most accurate economists, keeps getting worst each week.

(Source: MarketWatch)

The Q2 contraction is already expected to be more than double the 1958 single-quarter record of -10%. And while Q3's bounce back is expected to be strong, we're still expected

Analyst’s Disclosure:I am/we are long ABBV, ADP, TROW, GD, MO, MMM, FRT. 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 ABBV, ADP, TROW, GD, MO, MMM, LOW, and FRT in our portfolios.