Top US Aristocrat Stocks – September 2017

Top AristocratsWhile 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. Some of the companies are strong blue chip stocks while others can be smaller companies with growth.

Top 5 US Dividend Aristocrats Stocks

The monthly top US Dividend Aristocrats are not always the same for an extended period. It’s the reality of the stock markets. To that end, it’s important to always review your options when you are ready to invest. If you like monthly top stocks, you can review the Top Canadian Dividend Stocks.

The top 5 US Dividend Aristocrats are listed below with a summary of the company with some metrics provided.

In the short run, the market is a voting machine, but in the long run it is a weighing machine.
– Benjamin Graham


The top stocks identified below 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 pull back 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?

1. Cardinal Health

CAH - SmallHeadquartered in Dublin, Ohio, Cardinal Health (NYSE:CAH) is a global, integrated healthcare services and products company, providing customized solutions for hospital 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. Cardinal Health’s strength as a company flows from four areas of expertise: logistics, product, business and patient solutions.

  • Opportunity Score: 93%
  • Stock: NYSE:CAH
  • Sector: Healthcare
  • Dividend Yield: 2.67%
  • Dividend Payout Ratio: 45.90%
  • Technical Trend:

2. Nucor Corporation

NUE - SmallNucor (NYSE:NUE) is a Fortune 500 company with approximately 200 operating facilities, including our wholly owned subsidiaries of Harris Steel, The David J. Joseph Company, and Skyline Steel. The company consists of 90 businesses that operate independently but compete collectively.

  • Opportunity Score: 91%
  • Stock: NYSE:NUE
  • Sector: Basic Materials
  • Dividend Yield: 2.82%
  • Dividend Payout Ratio: 41.48%
  • Technical Trend:

3. Hormel Foods Corp

HRL - SmallHormel Foods Corporation (NYSE:HRL), a Delaware corporation (the Company), was founded by George A. Hormel in 1891 in Austin, Minnesota, as George A. Hormel & Company. HRL is primarily engaged in the production of a variety of meat and food products and the marketing of those products throughout the United States and internationally. Although pork and turkey remain the major raw materials for Hormel products, the Company has emphasized for several years the manufacture and distribution of branded, value-added consumer items rather than the commodity fresh meat business.

The company’s business is reported in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, International & Other. Domestically, HRL sells its products in all 50 states through company sales personnel, independent brokers, and distributors. Through Hormel Foods International Corporation, it markets its products in various locations throughout the world. Some of the larger markets include Australia, Canada, China, England, Japan, Mexico, and Micronesia. Products are sold to retailers, wholesalers, foodservice distributors and operators, and other outlets worldwide.

  • Opportunity Score: 82%
  • Stock: NYSE:HRL
  • Sector: Consumer Defensive
  • Dividend Yield: 2.17%
  • Dividend Payout Ratio: 41.98%
  • Technical Trend:

4. Legget & Plat

LEG - SmallLeggett & Platt (NYSE:LEG) is a diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products that can be found in most homes and automobiles. The 134-year-old company is comprised of 17 business units, 21,000 employee-partners, and 130 manufacturing facilities located in 19 countries.

Leggett & Platt is the leading U.S. manufacturer of the following: a) components for residential furniture; b) components for bedding; c) carpet cushion; d) adjustable beds; e) components for work furniture; f) high-carbon drawn steel wire; g) automotive seat support and lumbar systems; and h) bedding industry machinery.

  • Opportunity Score: 79%
  • Stock: NYSE:LEG
  • Sector: Consumer Cyclical
  • Dividend Yield: 3.16%
  • Dividend Payout Ratio: 56.92%
  • Technical Trend:

5. Target

TGT - SmallFounded in 1902 as Dayton’s, Target (NYSE:TGT) establishes the practice of giving 5 percent of pretax profits back to the community. In doing so, it becomes the second American company to establish a preset amount of annual giving.

Dayton’s started expanding in the 1950’s and officially became Target in 1960 as a discount retailer. By demonstrating visionary leadership, the company took the first step toward transforming Dayton from a family-run department-store chain into one of the nation’s largest discount-store chains.

  • Opportunity Score: 78%
  • Stock: NYSE:TGT
  • Sector: Consumer Defensive
  • Dividend Yield: 4.17%
  • Dividend Payout Ratio: 50.10%
  • Technical Trend:

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 -

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