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The Safest Dividend Aristocrats - 20 Potential Stocks To Beat The Down Going Market

Dividend Aristocrats with lowest beta ratios from the index originally published at "long-term-investments.blogspot.com". 

Dividend Aristocrats are wonderful income growth stocks. They have raised their dividend payments over a period of more than 25 consecutive years and they are selected by the credit rating agency to be a constituent of the popular S&P 500 Dividend Aristocrats index.

Exactly 54 companies are part of the index but some of them are very volatile. They have a bigger risk and you can discover this by the beta ratio. Just in times of a weak and down going market, it’s good to have stocks with a very low beta ratio.

Below is a list of the 20 Dividend Aristocrats with the lowest beta ratio of the index. The ratios are between 0.16 and 0.64. Every stock on the list has a performance which represents roughly 20 to 60 percent of the overall market. In a falling market you will have a performance advantage.

Here are safest Dividend Aristocrats:
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Family Dollar Stores (NYSE:FDO) has a market capitalization of $6.89 billion. The company employs 33,000 people, generates revenue of $9.331 billion and has a net income of $422.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $904.10 million. The EBITDA margin is 9.69 percent (the operating margin is 7.37 percent and the net profit margin 4.53 percent).


Financial Analysis: The total debt represents 16.23 percent of the company’s assets and the total debt in relation to the equity amounts to 42.19 percent. Due to the financial situation, a return on equity of 35.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.65. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.43, the P/S ratio is 0.74 and the P/B ratio is finally 5.35. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 0.12.


Long-Term Stock Price Chart Of Family Dollar Stores (FDO)
Long-Term Dividend Payment History of Family Dollar Stores (FDO)
Long-Term Dividend Yield History of Family Dollar Stores (FDO)

Consolidated Edison (NYSE:ED) has a market capitalization of $16.69 billion. The company employs 14,529 people, generates revenue of $12.188 billion and has a net income of $1.141 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.294 billion. The EBITDA margin is 27.03 percent (the operating margin is 19.19 percent and the net profit margin 9.36 percent).

Financial Analysis: The total debt represents 27.44 percent of the company’s assets and the total debt in relation to the equity amounts to 95.28 percent. Due to the financial situation, a return on equity of 9.77 percent was realized. Twelve trailing months earnings per share reached a value of $3.58. Last fiscal year, the company paid $2.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 1.36 and the P/B ratio is finally 1.39. The dividend yield amounts to 4.35 percent and the beta ratio has a value of 0.15.


Long-Term Stock Price Chart Of Consolidated Edison (ED)
Long-Term Dividend Payment History of Consolidated Edison (ED)
Long-Term Dividend Yield History of Consolidated Edison (ED)

Kimberly Clark (NYSE:KMB) has a market capitalization of $36.81 billion. The company employs 58,000 people, generates revenue of $21.063 billion and has a net income of $1.652 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.677 billion. The EBITDA margin is 17.46 percent (the operating margin is 12.75 percent and the net profit margin 7.84 percent).

Financial Analysis: The total debt represents 33.89 percent of the company’s assets and the total debt in relation to the equity amounts to 135.09 percent. Due to the financial situation, a return on equity of 34.20 percent was realized. Twelve trailing months earnings per share reached a value of $4.60. Last fiscal year, the company paid $2.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.82, the P/S ratio is 1.78 and the P/B ratio is finally 7.62. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 0.29.

Long-Term Stock Price Chart Of Kimberly Clark (KMB)
Long-Term Dividend Payment History of Kimberly Clark (KMB)
Long-Term Dividend Yield History of Kimberly Clark (KMB)

Take a closer look at the full list of the safest Dividend Aristocrats. The average P/E ratio amounts to 22.29 and forward P/E ratio is 15.46. The dividend yield has a value of 2.59 percent. Price to book ratio is 8.88 and price to sales ratio 1.97. The operating margin amounts to 14.23 percent and the beta ratio is 0.43. Stocks from the list have an average debt to equity ratio of 1.60.

Here is the full table with some fundamentals (TTM):

20 Safest Dividend Aristocrats (Click to enlarge)

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Related stock ticker symbols:
T, ED, KMB, MCD, JNJ, PG, CLX, XOM, PEP, KO, WMT, CL, ADM, CB, MKC, HRL, FDO, ABT, SHW, BCR  

Selected Articles:

*I am long KMB, WMT, MCD, PG, MKC, ADM, CL, PEP, KO, JNJ. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.