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Dividend Aristocrat Round-Up (Going Long Exxon And Universal Corp) For 4/27-5/1

May 04, 2020 3:22 PM ETXOM, GTN, SKT, BEN, FRT, LEG, CINF, MGEE, ED, BDX, CWT, HP, T, WST, ECL, TR, SHW, BF.B, KO, GPC, UVV25 Comments
Hale Stewart profile picture
Hale Stewart


  • There's still great deal of volatility in the REIT aristocrats.
  • Prior recommendations are either unchanged for up modestly.
  • I add Exxon and Universal Corp. to the buy list.

This week, instead of focusing on new issues, I move two companies from the watch list to the buy list: Exxon (XOM), and Universal Corp. (UVV). The charts for both companies are at actionable points.

Top Performing Aristocrats

  • Tanger Factory Outlets (SKT): +18.09%
  • Meredith Corporations (MDP): +13.51%
  • Franklin Resources (BEN): 13.25%
  • Federal Realty Investment Trust (FRT): 13.23%
  • Leggett and Platt (LEG): 12.95%

Bottom Performing Aristocrats

  • Cincinnati Financial (CINF): -22.39%
  • MGE Energy (MGEE) -6.63%
  • Consolidated Edison (ED): -6.52%
  • Becton Dickinson (BDX): -6.08%
  • California Water (CWT): -5.55%

The REIT aristocrats (SKT)(FRT) remain very volatile, with investors torn between the sector's high yields and the now extremely challenging nature of their operating environment. Utilities lost ground last week. Electric utilities are seeing a drop in demand due to the shuttering of businesses. Water utilities are getting caught in the downdraft.

Highest Dividends

  • Tanger Factory Outlets (SKT): 21.47%
  • Meredith Corporation (MDP): 18.28%
  • Helmerick and Payne (HP): 11.47%
  • Exxon (XOM): 8.07%
  • AT&T (T): 6.96%

Lowest Dividends

  • West Pharmaceuticals (WST): .335
  • Ecolabs (ECL): .99%
  • Tootsie Roll (TR): 1.01%
  • Sherman Williams (SHW): 1.02%
  • Brown Forman B shares (BF.B): 1.15%

Next, let's look at the watch list:The large drop in Edison is the stand-out event. As noted above, utility demand is down -- especially in the New York area. Kimberly Clark and Procter and Gamble are simply selling-off for technical reasons. Universal and Exxon are discussed below.

Here are the three stocks on the buy list:All were up marginally.

Here is how all three have performed since going on the list:

  • Coke (KO): recommended on 4/13 at 46.5, currently at 45.6
  • AT&T (T): recommended on 4/13 at 29.9, currently at 29.9
  • Genuine Auto Parts (GPC) recommended on 4/21 a 70.56, currently at 75.19

Let's check in on other SA analysis of stocks on

This article was written by

Hale Stewart profile picture
Hale Stewart spent 5 years as a bond broker in the late 1990s before returning to law school in the early 2000s. He is currently a tax lawyer in Houston, Texas. He has an LLM in domestic and international taxation (MagnaCumLaude). He is the author of the book The Lifetime Income Security Solution. Follow me on Twitter at @originalbonddadYou can read his legal analysis on his law office's blog.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (25)

The icons will ride the pandemic and perform better, come autumn and winter when wild winds blow and snow covers the ground in boreal realms. They will create wealth for another century and bring joy, hope and trust to the world once more. Exxon will thrive with 16 fields in Guyana and another 20 hopefully will emerge to develop a new energy hub in the region. If Shell buys out CNOOC stake on Stabroek, the two titans will triumph together, as they did in the North Sea.
Cuip99 profile picture
I am long in XOM (and BP). I appreciate the yield in the nice dividends. I feel crude oil prices will gradually recover. But then I also own KO. My REIT ownership is quite limited and probably will stay that way.
being impressed by a high div is risky business for few reasons
1. Dividend can be cut or eliminated
2. Companies can keep dividend but stock price drop much more than the amount collected
3. Many cases after the dividend is collected many sell the stock
And I was considering selling Exxon and maybe picking it up in a few years at $15, where my SLoB is at now.
HackDaddie profile picture
Present EV market share? 2018 saw a new record set at 2.1%. TWO PERCENT. The EV market has been floundering around for years making a tenth gain here and there year-over-year since 2010. I'm picking up at least 100 shares of XOM every month and DRIP'n every dividend payout right back into more XOM stock. EV are no doubt the future...just not OUR future...maybe our grandkids, but at EV's present rate of growth...even that's pushing it. As soon as the economy reopens, XOM will be back at $60-80 inside of a month...guaranteed.
Adding debt just to maintain their dividend payments ???
XOM: Have you seen the Bloomberg Businessweek article: “The Humbling of Exxon” by Kevin Crowley & Bryan Gruley in the 4 May issue?
Really good article though I cringed during most of it as I am long XOM!
Have not you heard. Exxon is going out of business. Electric cars are going to rule the roads. Wind and sun is where its at, Kumbaya my wayward brother in stocks. global warming must be stopped in our time for the children because a mind is a terrible thing.
Let's see if China agrees with you when we sink the western world with this nonsense.
"Haven't you heard-Exxon is going out of business, Wind and sun is where it's at" LOL -- Yes I've heard that! I've also heard that the other planets in the solar system are heading up too, but nobody in the green energy sector want to talk about that...lol Still searching for a SUV on Saturn (nothing yet). I've also heard that wind and solar outputs are too anemic to even scratch the surface of oil when it comes to global energy demands. Go figure...
ignorance trumps science smart!
Seatonmanagement profile picture
I hope you are right about Exxon, but I fear that all too soon Exxon might not continue dividend & trim it a little, next time, not drastically. Or merely hold place for 2+ years.
Hampton108 profile picture
MDP paused their dividend about 2 weeks ago, while waiting for advertising revenues to return to normal, whatever that exactly means...median, average, over time etc....

If you buy xom, you must not care about total return. Do your homework. Less than 1% annually over past decade including divs.
patientmike writes: "Do your homework, less than 1% annually over past decade" --sigh-- There you go again patientmike. The technical trend you're referring to is broken. Pointing to the 10 year return after a 3 month crash is disingenuous to say the least. But having said that...let's use your logic (however ridiculous) to gauge where the stock is heading technically. For the stock to make it back to the very LOWER part of that 10yr range you're referring to it would represent a better than 30% move to the upside (not counting the dividend btw). Please think out your logic before you suggest someone is misinformed.
Before the crash xom returned under 2 % for the prior 15 years on a total return basis. U are disingenuous. My source: Morningstar
In that time frame (15 years) XOM has offered a high yield and a wonderful opportunity for traders to accumulate gains in what has been a very predictable bracket-trading range. I guess you could spin whatever story you want to (pro or con) in such a long time frame patientmike. Unfortunately, you chose the negative spin. Again: that range is BROKEN (to the downside), meaning: a new range-bracket birth has been created. The ONLY question you should be asking yourself considering XOM as an investment or a trading vehicle TODAY is: where is it heading in the future....period.
Jackagain profile picture
I bought XOM around $42.00 a couple weeks ago. Picked up RDS.B today for a little over $30.
You got great bargains. Enjoy!
Krooklyn7 profile picture
Awesome!! I too pick up some XOM share at a low price around $35, when all this started. I couldn't belive it, when I saw the drop!
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