Now that we have officially entered November, a whole entirely new world of volatility appears to be present in the stock market. Whether we’re talking about big moves in Trump-related names (following his decisive victory) or moves in other interest rate-sensitive assets, investors have plenty to keep them on their toes this year.

That said, the stock market has broadly continued to move higher following this most recent key catalyst. The S&P 500 now trades at roughly 25-times earnings, which is up significantly from the multiple of around 20-times earnings a year ago, and has surged more than 35% over the course of the past year. That’s a move that most investors aren’t likely to see every year, and given its outsized nature, is enough to make many investors nervous. Fair enough.

For those looking to add a little more defensiveness to their portfolios, looking at dividend aristocrats (companies that have raised their dividends for at least 25 consecutive years) can be a great choice. These companies tend to stand the test of time, and have cash flow profiles (and balance sheets) that allow for dividend growth, supported generally by business models with some sort of moat (or durable competitive advantage) around the business.

The following three dividend aristocrats are ones I think are all-weather type holdings that investors who are more on the cautious end of the spectrum can consider right now. Let’s dive in!

Key Points About This Article:

• There’s plenty of volatility in the market, and while most of the price action today continues to be to the upside, there are reasons why some investors may want to take a breath.
• For those looking to stay fully invested, here are three dividend aristocrats worth considering right now.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

CVR Energy (CVI)

CVR Energy (NYSE:CVI) shares plummeted 35% over the past month, compounding a 51% loss for the year. Despite this, the company’s current price-sales ratio of 0.2-times suggests potential value, at least on a relative basis. That’s because nearly half of U.S. Oil and Gas companies have price-sales ratios above 1.8-times, with some exceeding 4-times. It’s my view that this lower valuation may not be warranted by the market, due to the company’s relatively consistent cash flow generation.

This cash flow growth profile has allowed the company to raise its dividends consistently over the past five years, actually making six such increases over this time frame. Now, these increases have been smaller in nature. However, with a payout ratio of around 75%, there may be room for the company to continue to grow its distribution over time, though some bears may have reason to be skeptical.

That’s because with a dividend yield above 10%, the market may be implying that this dividend yield is unsustainable. We’ll see – for now, the company looks like it’s in decent shape, and with a new Trump administration ahead, I think this stock could be worth looking at here.

The company’s current annual dividend of $2.00 per share may be riskier than others. But for those looking to reach for a bit of extra yield in this market, this is an option I think may be worth considering right now.

Franklin BSP Realty Trust (FBRT)

Franklin BSP Realty Trust Inc. (NYSE:FBRT) is a real estate investment trust (REIT) that has established a notable dividend history since its inception. The company manages a diversified U.S.-focused commercial real estate debt portfolio, primarily first mortgage loans, alongside subordinate and mezzanine loans. With $6.3 billion in assets as of June 30, FBRT’s internal handling of origination, underwriting, and asset management, supported by a strong broker network, provides a steady deal pipeline. 

As of October 2024, FBRT offers an annual dividend of $1.42 per share, translating to a dividend yield of approximately 10.97%. This yield places FBRT among the higher echelons of dividend-paying stocks, particularly within the mortgage REIT sector, where the average yield hovers around 11.9%.

FBRT’s dividends are distributed quarterly, with recent payments consistently set at $0.355 per share since December 2022. This provides a much more consistent revenue stream for long-term investors, though many of the same risks I mentioned with the previous pick apply to FBRT.

In my view, the real estate sector is one that could be among the more volatile places to invest, given where interest rates potentially go over the medium-term. But for those who believe that rates will ultimately head lower, this is an intriguing pick worth at least keeping on the watch list right now.

Buckle Inc. (BKE)

Buckle Inc. (NYSE: BKE) is a company many investors may not have heard of, but is one that may be worth considering for its dividend growth profile. With a current yield around 3.3%, Buckle is among the higher-yielding retailers focused on casual apparel, and this yield does suggest that the company’s cash flow profile may be more robust than its competition. For investors looking for exposure to this particular sector, that’s a good thing.

Buckle’s focus on growing its prevalence in the private label world is something that has driven interest in the stock. Analysts now expect Q1 2025 revenue to rise 3.1% to $270.56 million and EPS to grow 7.3% to $0.74. Full-year revenue and EPS are forecasted to increase by 3.2% and 5.6%, respectively, in fiscal 2026. This stock is up more than 40% over the course of the past year as some investors appear to be looking at this stock as a relative value play, which I’d argue makes sense. Trading at just 11-times earnings, it’s hard to find this kind of value in today’s market, which again has an aggregate multiple of around 25-times earnings. 

For those looking for a dividend stock with a bit more of a value orientation (and supported by consistent performance and strong fundamentals), this is a name I think is worth doing some homework on right now.

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