High-Yielding Dividend Aristocrats Remain Appealing For Income And Appreciation

Jul. 05, 2012 1:18 PM ETABT, JNJ, KMB, LEG, PBI4 Comments
Avi Morris profile picture
Avi Morris
5.1K Followers

In April 2011, I wrote an article "The 5 Best High-Yielding Dividend Aristocrats Remain Appealing," which listed high-yielding Dividend Aristocrats (all raised annual dividends for at least the prior 25 years) investments for income with yields of at least 3½% and growth. Since then, the Dow Jones Industrials is up a modest 3%. The 5 stocks are listed below with current prices and yields:

Company

Price

Yield

Pitney Bowes (PBI)

$14.61

10.3%

Leggett & Platt (LEG)

$21.27

5.3%

Johnson & Johnson (JNJ)

$68.04

3.6%

Kimberley-Clark (KMB)

$84.00

3.5%

Abbott Labs (ABT)

$64.83

3.1%

PBI was hit hard, falling 40% because of an army of short sellers who have already buried the company even though analysts are forecasting EPS of roughly $2 next year. This is "the company" supplying postal services and equipment around the world. Because of all the negative thinking, the stock is only suitable for investors who aren't afraid of playing with fire.

LEG produces engineered components and products found in homes, offices, automobiles and retail stores. Analysts are forecasting EPS of $1.31 in 2012 and $1.57 next year. The dividend was raised from $1.08 to $1.12 last year with another 4 cent increase expected in August.

KMB is a well-known paper company organized into four divisions: Personal Care, Consumer Tissue, K-C Professional and Health Care. Analysts are forecasting EPS of $5.15 this year and $5.52 next year. The dividend was raised from $2.80 to $2.96 for 2012.

JNJ is one of the largest healthcare companies in the world and has been able to keep its coveted AAA credit rating. In the last 5 years, the stock has been held back by flattish sales and its inability to solve its numerous recalls. Analysts are forecasting EPS of $5.14 this year and $5.52 next year. The dividend was increased from $2.28 to $2.44

This article was written by

Avi Morris profile picture
5.1K Followers
Avi Morris became interested in stocks while in high school when he started an investment club. It made him a few bucks and his interest in stocks continued. Over the years, Avi earned a portfolio between savings

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