Five Dividend Aristocrats Poised for Growth in 2024
To become a “Dividend Aristocrat,” a company must consistently increase shareholder dividends annually for at least 20 consecutive years. This impressive achievement often attracts investor interest, and funds tracking the Dividend Aristocrats Index must include these stocks. However, increased demand can lead to shares becoming “fully priced,” raising questions about potential growth.
At ETF Channel, we’ve analyzed the holdings of the SPDR S&P Dividend ETF, which tracks the S&P High Yield Dividend Aristocrats Index. We identified five dividend growth stocks that still offer substantial upside potential based on average analyst target prices for the next 12 months. If analysts are correct, these stocks could provide both capital gains and increasing dividends for investors.
The table below outlines these five stocks, including their recent share prices, average analyst target prices, and the percentage upside to reach those targets.
| Stock | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|
| S&P Global Inc (Symbol: SPGI) | $518.96 | $578.72 | 11.52% |
| Best Buy Inc (Symbol: BBY) | $96.28 | $105.50 | 9.58% |
| Exxon Mobil Corp (Symbol: XOM) | $120.35 | $130.81 | 8.69% |
| Federal Realty Investment Trust (Symbol: FRT) | $113.34 | $122.97 | 8.49% |
| Fuller Company (Symbol: FUL) | $79.78 | $86.50 | 8.42% |
It’s important to note that the average 12-month analyst targets refer to share price expectations. Each of these companies is also expected to pay dividends during this period. To estimate the total return potential, we combined the current dividend yield with the analyst target price upside:
| Stock | Dividend Yield | % Upside to Analyst Target | Implied Total Return Potential |
|---|---|---|---|
| S&P Global Inc (Symbol: SPGI) | 0.70% | 11.52% | 12.22% |
| Best Buy Inc (Symbol: BBY) | 3.91% | 9.58% | 13.49% |
| Exxon Mobil Corp (Symbol: XOM) | 3.16% | 8.69% | 11.85% |
| Federal Realty Investment Trust (Symbol: FRT) | 3.88% | 8.49% | 12.37% |
| Fuller Company (Symbol: FUL) | 1.12% | 8.42% | 9.54% |
Another important factor is the growth of the dividends themselves. We examined the trailing twelve months (TTM) of dividends paid by each company compared to the previous year’s TTM. This comparison indicates how much each company’s dividend has grown over the year:
| Stock | Prior TTM Dividend | TTM Dividend | % Growth |
|---|---|---|---|
| S&P Global Inc (Symbol: SPGI) | $3.55 | $3.63 | 2.25% |
| Best Buy Inc (Symbol: BBY) | $3.64 | $3.74 | 2.75% |
| Exxon Mobil Corp (Symbol: XOM) | $3.64 | $3.80 | 4.40% |
| Federal Realty Investment Trust (Symbol: FRT) | $4.33 | $4.37 | 0.92% |
| Fuller Company (Symbol: FUL) | $0.79 | $1.079 | 36.58% |
These five stocks are part of our broader Dividend Aristocrats List. The data regarding average analyst target prices used in this article is sourced from Zacks Investment Research via Quandl.com.
Dividend Growth Stocks: 25 Aristocrats »
Also see:
• Top Ten Hedge Funds Holding SEF
• FTPA Historical Stock Prices
• AIG Technical Analysis
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
