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Grab These 5 Overlooked Dividend Aristocrats Before Wall Street Catches On
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24/7 Insights
Since 1926, dividends have been a significant contributor, providing approximately 32% of the total return for the S&P 500. The remaining 68% came from capital appreciations. This shows the importance of sustainable dividend income and the potential for capital appreciation in shaping total return expectations.
A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Investors looking for defensive companies paying big dividends are drawn to the Dividend Aristocrats and with good reason. The 67 companies that made the cut for the 2024 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight. But the requirements go even further, with the following attributes also mandatory for membership on the Dividend Aristocrats list:
We screened the list and found five overlooked Dividend Aristocrats that investors grab now before Wall Street catches on. All have a Buy rating at top Wall Street firms. Don’t forget to get this free dividend legends report https://a673b.bigscoots-temp.com/dividend-legends/?tpid=1407652&tv=link&tc=in_content
This solid play for volatile markets offers a very reasonable entry point and a solid 3.31% dividend. Archer Daniels Midland Co. (NYSE: ADM) processes oilseeds, corn, wheat, cocoa, and other agricultural commodities.
The company operates through the following segments:
The Ag Services and Oilseeds segment includes activities related to the origination, merchandising, crushing, and further processing of oilseeds such as soybeans and soft seeds, such as cottonseed, sunflower seed, canola, rapeseed, and flaxseed into vegetable oils and protein meals.
The Carbohydrate Solutions segment engages in corn wet milling and dry milling activities and converts corn into sweeteners, starches, and bioproducts.
Lastly, the Nutrition segment provides customer needs for food, beverages, health and wellness, and more.
This old-school utility stock offers income investors the stability and track record many seek now, as well as a 3.55% dividend. Consolidated Edison Inc. (NYSE: ED), through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States.
It offers electric services for approximately 3.6 million customers in New York City and Westchester County; gas to about 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan.
The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey and gas to about 0.1 million customers in southeastern New York. In addition, it operates:
Consolidated Edison owns, develops, and operates renewable and energy infrastructure projects, provides energy-related products and services to wholesale and retail customers, and invests in electric and gas transmission projects.
With a diverse product base and a familiar and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical plays and pays a rich 3.39% dividend. It is one of the top market-cap stocks in the health care sector and raised the dividend for shareholders last year for the 61st consecutive year.
The company remains one of Wall Street’s most diversified health care names, offering everything from medical devices to over-the-counter health items and prescription drugs.
The health care giant also has one of the most exciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding for conservative accounts with a long-term investment.
The company generates a little over half of its sales in international markets, and it is expected to see higher spending on healthcare over the next 10 years.
This consumer staples leader is a safe bet for nervous investors, paying a dependable 3.53% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide.
It operates through three segments:
The Personal Care segment offers a diverse range of products, including:
Its related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names showcase the company’s resilience and adaptability.
The Consumer Tissue segment provides a comprehensive range of products, including facial and bathroom tissues, paper towels, napkins, and related items, all under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names.
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
This medical technology giant is a solid pick for investors looking for a safe position in the healthcare devices sector and pays a 3.56% dividend. Medtronic PLC (NYSE: MDT) develops, manufactures, and sells device-based medical therapies to health care systems, physicians, clinicians, and patients worldwide.
The Cardiovascular Portfolio segment offers:
It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, transcatheter pulmonary valves and percutaneous coronary intervention products, percutaneous angioplasty balloons, and other products.
The Neuroscience Portfolio segment offers:
The segment offers products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, urogynecologists, interventional radiologists, ear, nose, and throat specialists, and energy surgical instruments.
The Medical Surgical Portfolio segment offers:
The Diabetes Operating Unit segment provides insulin pumps and consumables, continuous glucose monitoring systems, and InPen, a smart insulin pen system.
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