69 May Aristocrats: Buy 1 Of 38 "Safer" Dividend Dogs

Summary

• Many S&P 500 Dividend Aristocrats remain overvalued, but select high-yield 'Dogs' like Realty Income and Amcor offer attractive entry points for income investors.
• Analyst forecasts suggest the top ten Aristocrat Dogs could deliver 16% to 38% net gains by May 2026, with average risk below the market.
• Caution: Fourteen Aristocrats have negative free cash flow margins, making their dividends less secure despite high yields—focus on 'safer' picks like Hormel.
• A market pullback or dividend hikes could bring more Aristocrats to fair value; patience and selective buying are key for maximizing yield and safety.
• "Dividend Aristocrats... in the S&P500 Index… have raised their annual payouts every year for at least 25 consecutive years. " – Kiplinger.com/Investing.
• Looking for a portfolio of ideas like this one? Members of The Dividend Dog Catcher get exclusive access to our subscriber-only portfolios. Learn More »

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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.