Five Dividend Aristocrats with Promising Upside Potential
A strong track record of increasing dividends can attract significant investor interest. To qualify as a “Dividend Aristocrat,” a company must raise its shareholder dividends each year for at least 20 consecutive years, making these stocks highly sought after. Interest in these companies often leads to their shares becoming “fully priced,” limiting potential gains based on analyst targets.
However, our team at ETF Channel has identified five dividend growth stocks within the SPDR S&P Dividend ETF, which tracks the S&P High Yield Dividend Aristocrats Index. These stocks show substantial upside potential based on average analyst target prices over the next 12 months. If the analysts are correct, these stocks could yield both capital gains and increasing dividends for investors.
In the following table, we present a summary of the five standout stocks, including their recent share prices, average analyst target prices for the next year, and potential upside to these targets.
| Stock | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|
| Federal Realty Investment Trust (Symbol: FRT) | $105.39 | $124.67 | 18.29% |
| S&P Global Inc (Symbol: SPGI) | $501.86 | $589.67 | 17.50% |
| Abbott Laboratories (Symbol: ABT) | $113.48 | $133.18 | 17.36% |
| Exxon Mobil Corp (Symbol: XOM) | $112.32 | $130.17 | 15.89% |
| Roper Technologies Inc (Symbol: ROP) | $522.32 | $604.67 | 15.77% |
It’s important to note that the average 12-month analyst targets refer only to share prices. Each of these stocks is also expected to pay out dividends during this period. To estimate total return potential, we will combine the analyst price appreciation with the anticipated dividend yields.
| Stock | Dividend Yield | % Upside to Analyst Target | Implied Total Return Potential |
|---|---|---|---|
| Federal Realty Investment Trust (Symbol: FRT) | 4.17% | 18.29% | 22.46% |
| S&P Global Inc (Symbol: SPGI) | 0.73% | 17.50% | 18.23% |
| Abbott Laboratories (Symbol: ABT) | 2.08% | 17.36% | 19.44% |
| Exxon Mobil Corp (Symbol: XOM) | 3.53% | 15.89% | 19.42% |
| Roper Technologies Inc (Symbol: ROP) | 0.63% | 15.77% | 16.40% |
Another crucial aspect to consider with dividend growth stocks is the rate at which the dividends are increasing. We analyzed the trailing twelve months of dividends paid for each of the five companies and compared them to the dividends from the previous year, which gives us insight into their growth rates.
| Stock | Prior TTM Dividend | TTM Dividend | % Growth |
|---|---|---|---|
| Federal Realty Investment Trust (Symbol: FRT) | $4.34 | $4.38 | 0.92% |
| S&P Global Inc (Symbol: SPGI) | $3.60 | $3.64 | 1.11% |
| Abbott Laboratories (Symbol: ABT) | $2.08 | $2.24 | 7.69% |
| Exxon Mobil Corp (Symbol: XOM) | $3.68 | $3.84 | 4.35% |
| Roper Technologies Inc (Symbol: ROP) | $2.799 | $3.075 | 9.86% |
The five stocks highlighted here are part of our complete Dividend Aristocrats List. The average analyst target price information utilized in this article is provided by Zacks Investment Research via Quandl.com.
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Explore 25 Dividend Aristocrats »
For further insights, check out:
• Institutional Holders of OBLG
• ZEUS Options Chain
• FARM market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
