Top 5 US Aristocrat Stocks – January 2018

While 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 US 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.

The monthly top 10 rarely have the same top 10 stocks. Be sure to come back, or better yet, follow the top 10 with the Canadian Dividend Performance List.

DISCLOSURE: Please note that links to merchants mentioned within this post might be using an affiliate link. Using an affiliate link means that, at zero cost to you, I might earn a commission if you buy something through that affiliate link.

Cardinal Health

CAH - SmallHeadquartered in Dublin, Ohio, Cardinal Health, Inc. is a global, integrated healthcare services and products company, providing customized solutions for hospitals, health systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices worldwide.The company provides clinically-proven medical products and pharmaceuticals and cost-effective solutions that enhance supply chain efficiency from hospital to home. Cardinal Health connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination and better patient management. Backed by nearly 100 years of experience, with approximately 50,000 employees in nearly 60 countries, Cardinal Health ranks among the top 25 on the Fortune 500.
  • Opportunity Score: 90%
  • Stock: NYSE:CAH
  • Sector: Healthcare
  • Dividend Yield: 2.93%
  • Dividend Payout Ratio: 53.92%
  • Technical Trend: Market Trend

Leggett & Platt

LEG - Leggett & PlattJ.P. Leggett and C.B. Platt were both residents of Carthage when they formed their business partnership in 1883. Together they produced the L&P bedspring, patented in 1885, which offered the best night's sleep yet available.Leggett & Platt's diverse manufacturing capabilities are divided into four product segments: Residential Products – a leading supplier of a wide range of components used in finished bedding and residential settings; Furniture Products – products and components for the home and office; Industrial Products – steel production used in a myriad wire products; Specialized Products– products used in a diverse array of specialty applications, from vehicle seat support to aerospace products.
  • Opportunity Score: 80%
  • Stock: NYSE:LEG
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.11%
  • Dividend Payout Ratio: 58.30%
  • Technical Trend: Market Trend

Target Corporation

TGT - Target Target Corporation, incorporated on February 11, 1902, is the second-largest discount store retailer in the United States, behind Walmart, and a component of the S&P 500 Index.

Target Corporation is a general merchandise retailer selling products through its stores and digital channels. The company offers high-quality, on-trend merchandise at discounted prices in clean, spacious, guest-friendly stores and through its digital channels. The company has found success as a cheap-chic player in the industry.

  • Opportunity Score: 80%
  • Stock: NYSE:TGT
  • Sector: Consumer Defensive
  • Dividend Yield: 3.67%
  • Dividend Payout Ratio: 52.10%
  • Technical Trend: Market Trend

General Dynamics Corporation

GD - General Dynamics CorporationGeneral Dynamics is a global aerospace and defense company. From Gulfstream business jets to submarines to wheeled combat vehicles to communications systems, people around the world depend on our products and services for their safety and security.

General Dynamics is organized into four business groups and each comprises several business units. The balanced business model gives each business unit the flexibility they need to stay close to their customers and remain agile. General Dynamics’ business units are responsible for the execution of their strategy and their operational performance.

  • Opportunity Score: 79%
  • Stock: NYSE:GD
  • Sector: Industrials
  • Dividend Yield: 1.68%
  • Dividend Payout Ratio: 33.37%
  • Technical Trend: Market Trend

Kimberley-Clark

KMB - Kimberley-ClarkKimberly-Clark has some of the most recognized brands in the world. The brands hold the No. 1 or No. 2 share position in 80 countries, and have five billion-dollar brands: Huggies, Scott, Kleenex, Cottonelle and Kotex.

Kimberly-Clark Professional partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive, with brands including Kleenex, Scott, WypAll, Kimtech and Jackson Safety.

Billions worldwide choose their products to make a positive difference in their lives.

  • 42,000 employees worldwide and operations in 35 countries
  • Leading brands sold in more than 175 countries
  • More than 145 years in business
  • Nearly one-quarter of the world's population purchase our products every day
  • Opportunity Score: 79%
  • Stock: NYSE:KMB
  • Sector: Consumer Defensive
  • Dividend Yield: 3.26%
  • Dividend Payout Ratio: 64.03%
  • Technical Trend: Market Trend

Top 10 Canadian Dividend Stocks – January 2018

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?
  • 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 US 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.

Image courtesy of David Castillo Dominici - FreeDigitalPhotos.net