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

Nucor

Nucor is the largest steel producer in the U.S. with a production capacity exceeding 27 million tons. It is a quality producer of automotive grade steels with a growing presence in the automotive market and is one of the largest vertically integrated and most diversified steelmakers in North America. Nucor operates through key subsidiaries like Harris Steel, The David J. Joseph Company and Skyline Steel and has 200 operating facilities. The company has an extensive presence in the U.S. and Canada. Nucor has 13 bar mills manufacturing a broad range of steel products. The company has a diversified product mix consisting of sheet (33% of 2018 external tons sales), bar (23%), structural (8%), plate (8%), tubular products (4%), rebar fabrication (4%), downstream (9%) and raw materials (11%). It serves a wide range of customers from individuals to large industrial bases. The steel mills segment is Nucor’s largest segment, representing ~65% of Nucor’s 2018 sales, followed by steel products and raw materials segments.

Investment Data

Caterpillar

CAT - CaterpillarCaterpillar is a leading global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through Construction Industries (39% of sales), Resource Industries (17%), Energy & Transportation (38%) and Financial Products (6%) segments. It also provides financing and related services. Caterpillar has a huge brand portfolio consisting of over 20 well-known brands. Over the last 90 years in service, customers trust Caterpillar for their basic infrastructure, energy and natural resources needs. The company derives 59% of its revenues from outside the U.S. - Asia Pacific (23% of total 2018 sales); Europe, Africa, Middle East (22%); North America (47%) and Latin America (8%). Caterpillar operates through a network of 168 dealers in 193 countries. It has installed over 1.5 million construction machines and built more than 20 million engines globally. Caterpillar is favorably placed to gain from higher demand for oil and gas activities and increased mining production and commodity prices.

Investment Data

Linde Praxair Inc.

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

Top 10 Canadian Dividend Stocks – November 2019

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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