10 High-Yield Dividend Aristocrats For Growth And Bargain Hunters

Dec. 13, 2024 7:00 AM ETBTI, THFF, TGT, MO, GRC, CSL, CVX, TROW, KMB, TMP7 Comments
(19min)

Summary

  • The S&P is up almost 30% this year, and many investors are worried about an impending crash.
  • PEGY (PE divided by growth and yield) ratio combines yield, growth, quality and value, creating the potential for excellent long-term returns and income growth while outperforming the S&P.
  • These low PEGY aristocrats boast a 4% yield, A-credit rating, 43-year dividend growth streak, 9% earnings growth, and a 13% long-term return potential, making them exceptional potential investments.
  • Their PEGY ratio of 1.27 is 3X lower than the dividend aristocrats, and they are 14% historically undervalued, with a 21% upside in the next year alone.
  • Their fundamentals justify a possible 44% gain in the next two years and a possible 102% gain over the next five years. Analysts expect their inflation-adjusted dividends to potentially triple in the next 10 years.
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Multi-ethnic businesspeople under rain of money

Jose Luis Pelaez Inc

Bottom Line Up Front: PEGY Aristocrats Combine Yield, Growth, Quality And Value

Consensus Total Return Potential

  • Not a forecast.
  • Consensus return potential.
  • These are the expected returns if and only if these companies grow as expected and return to historical

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This article was written by

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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 a beneficial long position in the shares of BTI either through stock ownership, options, or other derivatives. 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.

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