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12 Of The Safest Dividend Aristocrats

Happy New Year! It was a fantastic year 2014 and I hope you've also generated a good performance.

I hope that this year can also produce a solid for my portfolio depite the fact that many analysts are scared about the current market valuation.


I think that we must own stocks but we need to keep a larger amount of cash in order to be prepared for a potential market correction. If dividend yields go up, it's good for us because we can earn more money by holding stocks and receiving dividends, all with a smaller amount of money.


What to do with price fluctuations?


One of my most important lessons on the stock market was - how do I become more diversified and secure?

The answer was very simple: Don't put all your money into one basket; don't put all your money into one asset. Keep diversified over industries, sectors and try to look for higher capitalized stocks who are acting within several countries.

Those are one of my keystones when I talk about investment security. For sure, it's no guarantee to avoid losses but I can sleep much better and can take a bigger part of the capital market.

Today I like to show you some new stocks with focus on security. These are my main criteria:

- Dividend yields over 2%
- Beta below 0.5
- Dividend Payout Ratios under 60%
- Market Caps are over $10 billion

My screen produced a few interesting results of which three have a very long history with their dividends, going back more than 40 years (close to Dividend Kings). I like to highlight some oft them now. 

Here are 12 of the safest Dividend Aristocrats...

Exxon Mobil (NYSE:XOM) has a market capitalization of $397.11 billion. The company employs 75,000 people, generates revenue of $420,836.00 million and has a net income of $33,448.00 million.

Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $57,483.00 million. The EBITDA margin is 13.66 percent (the operating margin is 9.58 percent and the net profit margin 7.95 percent).

Financials: The total debt represents 6.55 percent of Exxon Mobil’s assets and the total debt in relation to the equity amounts to 13.05 percent. Due to the financial situation, a return on equity of 19.17 percent was realized by Exxon Mobil.

Twelve trailing months earnings per share reached a value of $7.95. Last fiscal year, Exxon Mobil paid $2.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.79, the P/S ratio is 0.94 and the P/B ratio is finally 2.34. The dividend yield amounts to 2.94 percent and the beta ratio has a value of 0.90.

Long-Term Stock Price Chart Of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

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AFLAC (NYSE:AFL) has a market capitalization of $27.91 billion. The company employs 8,859 people, generates revenue of $24,138.00 million and has a net income of $3,158.00 million.

AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,451.00 million. The EBITDA margin is 26.73 percent (the operating margin is 21.17 percent and the net profit margin 13.08 percent).

Financials: The total debt represents 4.04 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 33.50 percent. Due to the financial situation, a return on equity of 20.64 percent was realized by AFLAC.

Twelve trailing months earnings per share reached a value of $6.38. Last fiscal year, AFLAC paid $1.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.70, the P/S ratio is 1.16 and the P/B ratio is finally 1.95. The dividend yield amounts to 2.52 percent and the beta ratio has a value of 1.52.

Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

Automatic Data Processing (NASDAQ:ADP) has a market capitalization of $41.09 billion. The company employs 61,000 people, generates revenue of $12,206.50 million and has a net income of $1,502.60 million.

Automatic Data Processing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,559.10 million. The EBITDA margin is 20.97 percent (the operating margin is 18.09 percent and the net profit margin 12.31 percent).

Financials: The total debt represents 6.81 percent of Automatic Data Processing’s assets and the total debt in relation to the equity amounts to 32.75 percent. Due to the financial situation, a return on equity of 23.37 percent was realized by Automatic Data Processing.

Twelve trailing months earnings per share reached a value of $3.18. Last fiscal year, Automatic Data Processing paid $1.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.78, the P/S ratio is 3.37 and the P/B ratio is finally 6.14. The dividend yield amounts to 2.30 percent and the beta ratio has a value of 0.85.

Long-Term Stock Price Chart Of Automatic Data Processing (ADP)
Long-Term Dividend Payment History of Automatic Data Processing (ADP)
Long-Term Dividend Yield History of Automatic Data Processing (ADP)

Genuine Parts Company (NYSE:GPC) has a market capitalization of $16.45 billion. The company employs 37,500 people, generates revenue of $14,077.84 million and has a net income of $684.96 million.

Genuine Parts Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,192.19 million. The EBITDA margin is 8.47 percent (the operating margin is 7.52 percent and the net profit margin 4.87 percent).

Financials: The total debt represents 10.32 percent of Genuine Parts Company’s assets and the total debt in relation to the equity amounts to 23.66 percent. Due to the financial situation, a return on equity of 21.58 percent was realized by Genuine Parts Company.

Twelve trailing months earnings per share reached a value of $4.50. Last fiscal year, Genuine Parts Company paid $2.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.90, the P/S ratio is 1.17 and the P/B ratio is finally 4.94. The dividend yield amounts to 2.14 percent and the beta ratio has a value of 0.74.

Long-Term Stock Price Chart Of Genuine Parts Company (GPC)
Long-Term Dividend Payment History of Genuine Parts Company (GPC)
Long-Term Dividend Yield History of Genuine Parts Company (GPC)

12 Of The Safest Dividend Aristocrats (click to enlarge)
Source: long-term-investments.blogspot.com

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*I am long JNJ, PEP, EMR, ADP, GPC, MMM, ITW. 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.