Protect Your Wealth: 5 Dividend Aristocrats To Avoid

May 17, 2024 7:00 AM ET, , , , , 33 Comments

Summary

  • Dividend aristocrats are highly stable and well-run blue-chip companies that raise their dividends every year for 25-plus consecutive years.
  • However, no stock is a risk-free bond alternative. Even aristocrats can cut their dividends and experience significant losses.
  • Over the last 50 years, dividend cutters suffered 91% inflation-adjusted losses.
  • It's crucial to avoid dividend cutters when investing, with safety and quality being the most important factors to consider.
  • Here are the five highest-risk aristocrats, the most likely to cut their dividends. They're undervalued for a reason, and smart income investors should look at safer alternatives that often yield just as much and offer similar or superior return potential.
  • Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Learn More »
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LumerB

Dividend Aristocrats are beloved because they're the quintessential sleep-well-at-night blue chips.

Companies are so well run, stable, and adaptable that they raise their dividends every single year for 25-plus consecutive years.

Through recessions, economic crashes, bear markets, inflation spikes, and interest rates that fluctuate

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This article was written by

115.76K Followers

Dividend Sensei (Adam Galas) is an Army veteran and stock analyst with 20+ years of market experience.

He is a founding author of the investing group The Dividend Kings which focuses on helping investors safeguard and grow their money in all market conditions through the highest-quality dividend investments. Dividend Sensei and the team of analysts (Brad Thomas, Justin Law, Nicholas Ward, Chuck Carnevale, and Sebastian Wolf) help members invest more intelligently in dividend stocks. Features include: 13 model portfolios, buy ideas, company research reports, and a thriving chat community for readers looking to learn how to invest more intelligently in dividend stocks. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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