Top 5 S&P500 Dividend Aristocrats – November 2019

Dividend Aristocrats - Top 5While we know that the stock market will grow over time, on a day-to-day or even month-to-month basis, the stock market is always changing value due to the daily fluctuation of all the stocks.

The opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which dividend stocks are an opportunity. An opportunity can be for a stock you already own or simply for a new addition to your portfolio. It is important to note that the rankings below do not assess the viability of the business.

Top 5 S&P500 Dividend Aristocrat Stocks

Here are the top 5 US aristocrat stocks for this month, see below for the details. This is obviously a snapshot in time at the time of writing, many factors could change the rankings.

Here is a quick excerpt on the top 5 dividend aristocrats stocks opportunities identified by the US Aristocrats List. The list includes the US Dividend Aristocrats and Kings.

Stay on top of your next investment decision with the Dividend Snapshot US Aristocrats List. Review the Chowder Rule along with the 3, 5, and 10 year ratios for dividend growth, EPS growth and the payout ratio to pick a solid investment for your portfolio.

Walgreens Boots Alliance, Inc.

WBA - Walgreens Boots Alliance, Inc.Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 385,000* people. The Company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has more than 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s size, scale, and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the U.S. and worldwide.

Investment Data

Franklin Resources, Inc.

BEN - Franklin ResourcesFranklin Resources, Inc. is a global investment management organization. It provides investment management, fund administration, sales and distribution, shareholder and other services. The company manages more than $717 billion in assets (AUM) at September 30, 2018, and offers products and services under Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby brands. Franklin’s assets can be broadly classified into equity (43% of total AUM as of September 2018), fixed income (36%), multi-asset (20%), and cash management (1%). The U.S. remains Franklin’s largest market with 67% of AUM, followed by EMEA (14%), Asia Pacific (13%), Canada (4%) and Latin America (2%). Franklin operates through an integrated network of risk management professionals, a global trading desk network and a strong distribution franchise across the globe. The company has an unrivaled global reach with offices in 34 countries and clients in more than 170 countries. Franklin’s clientele includes retail (72% of AUM), institutional (25%) and high net-worth (3%) clients.

Investment Data

AO Smith

AO Smith Corporation is a global water technology company. It manufactures residential and commercial water heaters, boilers, and water treatment products. It is the largest manufacturer and marketer of water heaters in North America with a leading share in both the residential and commercial markets, and major product lines. AO Smith sells a comprehensive product line in varying sizes in more than 60 countries worldwide. The company offers electric, natural gas, gas tankless, liquid propane as well as solar tank units. The products are typically used in residences, restaurants, hospitals, schools, hotels, office buildings, laundries, car washes, and other large commercial buildings. AO Smith is comprised of two reporting segments: North America (64% of 2018 revenues) and Rest of the World (36% - China, Europe, and India). The company has operations in the U.S., Canada, China, India, Mexico, the Netherlands, Turkey, the UK and Vietnam. The company has a strong wholesale distribution channel including more than 1,200 independent distributors. It also has long-standing customer relationships with four of the six largest national hardware and home center chains, including Lowe’s.

Investment Data

T. Rowe Price Group, Inc.

TROW - T. Rowe Price Inc.Founded in 1937, Baltimore-based T. Rowe Price is a global investment management organization with $1.01 trillion in assets under management as of October 31, 2018. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The organization also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

Investment Data

Pepsi Co.

Investment Data

Top 10 Canadian Dividend Stocks – January 2020

Opportunity Score Formula

The top 5 US aristocrats stocks identified above are based on a score calculated using a number of financial data points from the companies. In the end, the score is generated from following five key indicators:

  • 52-Week Range: Trend over the past 52 weeks. Is the stock pulling back from a 52 week high?
  • P/E Ratio: Is the stock price running away from its earnings?
  • Revenue Growth: Is the revenue growing? Growing revenue is important. We don't want to be fooled by share buybacks and cost management only.
  • Dividend Yield: Is the yield attractive? Usually could identify a pullback if the yield starts to go up or major trouble if it goes too high.
  • Dividend Growth: Uses dividend growth and the Chowder Rule. Is the company capable of growing the dividend consistently?
  • Dividend Payout Ratio: Uses historical averages to put today's ratio in perspective. Is the company able to grow the dividend at the same rate it increases its earnings?

The generated score is meant to assess an entry point opportunity based on historical and today's numbers. It completely ignores the business quality, the quality of the company is for every investor to assess. My stock selection process breaks down the quantitative and qualitative assessments investors should establish to pull the trigger before buying.

If you are interested in more details, the S&P500 Dividend Aristocrats List provides many more data points to help make your investment decision.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.
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