The 65-member Dividend Aristocrats are among the market's best sources of reliable, predictable income. But these five stand out as truly elite.
The past year-plus has been easy going for investors looking
to generate profits from equity returns, with the S&P 500 up by almost
double from the March 2020 lows. Income, however, is another story altogether.
Already-low interest rates started retreating this spring; the yield on the
10-year Treasury note is back down to a paltry 1.3%.
Fortunately, investors have a better way to collect
reliable, predictable income.
Dividend Aristocrats – companies with a track record of
increasing shareholder payouts for at least 25 consecutive years – offer the
best of many worlds. Most Aristocrats are large-cap blue chips with typically
stable earnings, healthy balance sheets and long histories of profitability and
growth. That allows them to:
- Pay secure, typically well-covered dividends.
- Raise their payouts regularly without interruption.
- Offer the potential for much more significant price gains than bonds typically deliver.
Investors have plenty of Dividend Aristocrats to choose from
– 65 at present, in fact. But it's unlikely that anyone is looking to buy up
individual shares of each and every one. So if you had to buy just a few, which
ones should they be?
To help answer that question, we looked at the full list of
Dividend Aristocrats through the lens of the Stock News POWR Ratings System. We
then narrowed our focus down to only those Aristocrats receiving a Strong Buy
rating from the pros based on the company's current financial situation and
future prospects.
Based on those criteria, here are the five best Dividend
Aristocrats for investors looking to beef up their income portfolios.
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