There are no guarantees that the payments will continue forever. The company announced it will reduce capital expenditures to $16 billion-$19 billion for 2020 to preserve cash in this difficult environment. For the quarter, sales increased 2.3% to $34.7 billion. Value must be considered as well. This was a new âmembers recordâ. A company is known to be to dividend aristocrats if it has not only paid dividends to its stockholders consistently but also increased its payout of the dividend year by year for at least 25 consecutive years. This earnings-per-share growth will be achieved through a combination of rising revenue as well as share repurchases. The key to Lowe’s success over the course of 2020 has been its booming e-commerce platform. Exxon Mobil’s earnings are volatile, due to the cyclical nature of the oil and gas industry. While the pandemic will take its toll on the earnings this year, and it is likely the company’s earnings-per-share growth streak will end, we still expect 4% earnings-per-share growth over the next five years, primarily thanks to the recent acquisitions. In 2019, People’s United Financial acquired United Financial, which enhanced the presence of the company in central Connecticut and western Massachusetts. It has total assets of $59 billion. Each is sorted by GICS sectors and listed in alphabetical order by name. But a recovery in oil and gas prices could mean strong returns for investors willing to buy at these depressed prices. Neither of the two are expanding their store count significantly, and neither is interested in a price war. Retail pharmacy has proven to be resistant to e-commerce and will benefit from the aging U.S. population and rising demand for healthcare. The sparkling beverage portfolio includes the flagship Coca-Cola brand, as well as other soda brands like Diet Coke, Sprite, Fanta, and more. Thus, dividend aristocrat companies are those with a stable business and surplus funds. Next to the ârealâ aristocrats with 25 years of dividend increase, there are several companies that will⦠Walgreens’ adjusted earnings-per-share declined by just 7% during 2009 and the company actually grew its adjusted earnings-per-share from 2007 through 2010. Walgreens has increased its dividend for 45 consecutive years. It is an equally weighted company index. This allows them to gain market share while weaker businesses fight to stay alive. The Dividend Aristocrats Index is also significantly underweight the Information Technology sector, with a 1.7% allocation compared with over 20% allocation within the S&P 500. Specifically, income investors should consider the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index that have each increased their dividends for ⦠Updated on January 23rd, 2020 by Samuel Smith. Not to forget that the dividends which the investors receive can be invested back by them into the shares again to obtain more results. The Dividend Aristocrats Index has slightly underperformed the broader market index over the last decade, with a 13.7% total annual return versus a 13.9% total annual return for the S&P 500 Index. Total revenue came in at $208.2M, down from $233.2M in the year-ago quarter. General Dynamics stock has a 3% dividend yield. These are companies that pay dividends and annually increase their dividends. Based on expected fiscal 2021 adjusted EPS of $4.98, Walgreens stock trades at a price-to-earnings ratio (P/E) of 8.3. You can see detailed analysis on every Dividend Aristocrat further below in this article. In order to calculate future returns, we have used mid-cycle (5-year average) earnings-per-share of $3.26 as a base. A Dividend Aristocrat is a company in the S&P 500 that has paid and ⦠An investor can identify dividend aristocrats by studying the dividend payout history of a company and also the rate of increase in the payout each year. Ex-Date Calendar 49 Dividend Aristocrats 57 AMEX 1306 NYSE 2590 NASDAQ 3062 Warren Buffett Stock Portfolio 2020 46 Monthly Dividend Stocks 405 Monthly Dividend ETFs 10 Upcoming Dividends 402 High Paying Dividend 10 Dogs Of The Dow 10 Pay-Dates 1 On June 29th, AT&T announced it had turned on 5G service to 28 additional markets. We expect 6% annual earnings-per-share growth over the next five years. You will Learn Basics of Accounting in Just 1 Hour, Guaranteed! They are ‘just’ a collection of high quality shareholder friendly stocks that have strong competitive advantages. The image below shows the history of the Dividend Aristocrats Index from 1989 through 2020: Note: CL, GPC, and NUE were all removed and re-added to the Dividend Aristocrats Index through the historical period analyzed above. Dividend Aristocrats have historically seen smaller drawdowns during recessions versus the S&P 500. Walgreens has also announced a partnership with VillageMD in which Walgreens will offer full-service doctor offices co-located at its stores. This will help the company continue to invest in growth, pay dividends to shareholders, and also pay down debt. Shares of AT&T trade for a price-to-earnings ratio of 9.0, below our fair value P/E of 11. FFO per share came in at $1.22, down sharply from $1.43 in the year-ago quarter. It now sells products in more than 200 countries around the world, and has 21 brands that each generate $1 billion or morein annual sales. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. Mall traffic is declining, which has put pressure on many brick-and-mortar retailers. McDonald's ( MCD). Analysis includes valuation, growth, and competitive advantage(s). Stocks of such companies are less risky and provide good returns. Coca-Cola was founded in 1892. In addition, expected annual FFO-per-share growth of ~5.9%, plus the 5.2% dividend yield lead to expected total annual returns of 11.6% per year over the next five years. People’s United Financial is a diversified financial services company that provides commercial and retail banking and wealth management services via its network of over 400 branches in the Northeast. General Dynamics has established naval and ground platforms that support maintenance and modernization contracts, as well as future prime contract wins. For the fiscal year, sales increased 2.0% to $139.5 billion. he 57 Aristocrats stocks for June/July 2019 represent all eleven Morningstar Sectors. In the 2020 third quarter, AT&T generated revenue of $42.3 billion, along with operating cash flow of $12.1 billion. Walgreens Boots Alliance is a pharmacy retailer with over 21,000 stores in 11 countries. For example, in the most recent quarter Walgreens’ sales growth was led by a 3.6% increase in the Retail Pharmacy USA segment and a 4.3% increase in the Pharmaceutical Wholesale division. In this example, the company cannot be said to be a dividend aristocrat since the rate of payout of dividends is not increasing consistently. Despite the steep declines, there were some positive signs. The new platform is a critical step for AT&T to keep up in the streaming wars. Click here to read an article examining all 15 no-fee DRIP Dividend Aristocrats in detail. You may also have a look at the following articles –, Copyright © 2021. Production increased 1% from the previous quarter. Some of these dividend growers are the names that make up the S&P 500 ® Dividend Aristocrats ® Indexâ57 high-quality companies with at least 25 consecutive years of dividend growth. Conditions for retail real estate have become even more challenging due to the coronavirus, which has forced many stores to close. We forecast 7% annual EPS growth over the next five years. Based on expected EPS of $8.60 for the current fiscal year, Lowe’s stock trades for a P/E ratio of 18.6. Companies created via a spin-off (like AbbVie) can be Dividend Aristocrats with less than 25 years of rising dividends if the parent company was a Dividend Aristocrat. ... 57 Dividend yield: 2.7%. A business that pays consistent dividends must be more selective with the growth projects it takes on because a portion of its cash flows are being paid out as dividends. By yield, AT&T topped all Aristocrats. For superior long-term returns, investors should focus on high-quality dividend growth stocks. As you can see below, the consumer staples sector accounts for nearly 25% of the index. Adjusted operating income decreased -24.9% to $5.2 billion, while adjusted earnings-per-share totaled $4.74, down -20.6% year-over-year but ahead of previous guidance of $4.65 to $4.70. Sector Overview 4. Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series) 5. These 7 stocks represent attractive long-term buys for dividend growth investors. New Year Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. General Dynamics had revenue of nearly $40 billion last year. As a result, virtually all banks will increase their provisions for loan losses. Cintas. This is a difficult time for retailers, as competition is heating up from e-commerce players such as Amazon (AMZN) and many others. 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