Five Dividend Aristocrats Poised for Growth in 2024
To earn the title of “Dividend Aristocrat,” a company must achieve an impressive milestone: increasing dividends for at least 20 consecutive years. Companies that reach this benchmark often draw significant investor interest, leading to high demand. This demand can sometimes result in such stocks becoming “fully priced,” limiting future upside potential.
At ETF Channel, we analyzed the holdings of the SPDR S&P Dividend ETF, which tracks the S&P High Yield Dividend Aristocrats Index. Our findings highlighted five dividend growth stocks that still offer considerable upside based on average analysts’ price targets for the next 12 months. If these predictions hold true, investors could enjoy both capital gains and rising dividend payments.
Below is a summary of these five stocks, including their recent share prices, the average analyst target for the next 12 months, and the expected percentage increase to reach these targets.
| Stock | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|
| Polaris Inc (Symbol: PII) | $65.22 | $79.92 | 22.53% |
| Colgate-Palmolive Co. (Symbol: CL) | $93.91 | $106.09 | 12.97% |
| McCormick & Co Inc (Symbol: MKC) | $77.13 | $85.85 | 11.30% |
| Lincoln Electric Holdings, Inc. (Symbol: LECO) | $203.30 | $223.00 | 9.69% |
| California Water Service Group (Symbol: CWT) | $51.08 | $54.50 | 6.70% |
While the average analyst targets reflect only potential share price movements, these five companies are also expected to pay dividends during the forecast period. Thus, the expected total return includes both the share price appreciation and the dividend yield. We have estimated this total return potential by adding each stock’s current yield to the expected price upside, as shown in the table below:
| Stock | Dividend Yield | % Upside to Analyst Target | Implied Total Return Potential |
|---|---|---|---|
| Polaris Inc (Symbol: PII) | 4.05% | 22.53% | 26.58% |
| Colgate-Palmolive Co. (Symbol: CL) | 2.13% | 12.97% | 15.1% |
| McCormick & Co Inc (Symbol: MKC) | 2.33% | 11.30% | 13.63% |
| Lincoln Electric Holdings, Inc. (Symbol: LECO) | 1.48% | 9.69% | 11.17% |
| California Water Service Group (Symbol: CWT) | 2.19% | 6.70% | 8.89% |
Another important aspect of these dividend growth stocks is the rate at which their dividends are increasing. We examined the dividends collected by shareholders in the last twelve months and compared them to the prior year’s amounts to gauge growth.
| Stock | Prior TTM Dividend | TTM Dividend | % Growth |
|---|---|---|---|
| Polaris Inc (Symbol: PII) | $2.59 | $2.63 | 1.54% |
| Colgate-Palmolive Co. (Symbol: CL) | $1.91 | $1.98 | 3.66% |
| McCormick & Co Inc (Symbol: MKC) | $1.56 | $1.68 | 7.69% |
| Lincoln Electric Holdings, Inc. (Symbol: LECO) | $2.56 | $2.84 | 10.94% |
| California Water Service Group (Symbol: CWT) | $1.04 | $1.12 | 7.69% |
These five stocks are included in our complete Dividend Aristocrats List. The average analyst target price data used in this analysis was provided by Zacks Investment Research via Quandl.com.
Dividend Growth Stocks: 25 Aristocrats »
Also see:
• Amazon.com market cap history
• ANGO Options Chain
• Funds Holding FUL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
