Indeed, S&P 500 earnings declined for the fifth consecutive period in the second quarter of 2016 and even if the third quarter results are positive, the growth rate is likely to be very small. A potential consequence of this "earnings recession" is that future dividends could be at risk. Earnings are an essential driver of dividends, and ultimately returns, so there is good reason for concern.
But there's an exclusive group of companies that may provide an answer. The S&P 500 Dividend Aristocrats Index includes high quality companies that have increased their dividends every year for at least 25 consecutive years.
How are these companies able to continually grow dividends? One answer is by delivering earnings growth. The S&P 500 Dividend Aristocrats have delivered positive annual earnings growth for the first two quarters of 2016 in amounts that were substantially higher than the broad market.
Attached you will find a compilation of the cheapest Dividend Aristocrats. You can also find a list of the 20 highest yielding Aristocrats at the end of this article. You might notice that yield and cheapness are sometimes not the same.
These are the cheapest Dividend Aristocrats....
AT&T -- Yield: 5.32%
AT&T (NYSE:T) employs 277,200 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $229.08 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49,599.00 million. The EBITDA margin is 33.79% (the operating margin is 16.88% and the net profit margin 9.32%).
Financials: The total debt represents 31.33% of AT&T assets and the total debt in relation to the equity amounts to 102.84%. Due to the financial situation, a return on equity of 12.57% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $2.35. Last fiscal year, AT&T paid $1.89 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.74, the P/S ratio is 1.54 and the P/B ratio is finally 1.84. The dividend yield amounts to 5.32%.
Stock Charts:
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| Long-Term Stock Price Chart of AT&T (T) |
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| Long-Term Dividend Payment History of AT&T (T) |
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| Long-Term Dividend Yield History of AT&T (T) |
AbbVie -- Yield: 4.35%
AbbVie (NYSE:ABBV) employs 28,000 people, generates revenue of $22,859.00 million and has a net income of $5,144.00 million. The current market capitalization stands at $100.68 billion.AbbVie’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,707.00 million. The EBITDA margin is 38.09% (the operating margin is 32.97% and the net profit margin 22.50%).
Financials: The total debt represents 59.70% of AbbVie assets and the total debt in relation to the equity amounts to 802.81%. Due to the financial situation, a return on equity of 180.90% was realized by AbbVie.
Twelve trailing months earnings per share reached a value of $3.72. Last fiscal year, AbbVie paid $2.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.82, the P/S ratio is 4.20 and the P/B ratio is finally 24.04. The dividend yield amounts to 4.35%.
Stock Charts:
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| Long-Term Stock Price Chart of AbbVie (ABBV) |
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| Long-Term Dividend Payment History of AbbVie (ABBV) |
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| Long-Term Dividend Yield History of AbbVie (ABBV) |
Target Corporation -- Yield: 3.55%
Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $39.12 billion.Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).
Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.
Twelve trailing months earnings per share reached a value of $5.15. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.03, the P/S ratio is 0.53 and the P/B ratio is finally 3.14. The dividend yield amounts to 3.55%.
Stock Charts:
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| Long-Term Stock Price Chart of Target Corporation (TGT) |
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| Long-Term Dividend Payment History of Target Corporation (TGT) |
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| Long-Term Dividend Yield History of Target Corporation (TGT) |
T. Rowe Price Group -- Yield: 3.36%
T. Rowe Price Group (NASDAQ:TROW) employs 6,239 people, generates revenue of $4,200.60 million and has a net income of $1,223.00 million. The current market capitalization stands at $15.68 billion.T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,025.20 million. The EBITDA margin is 48.21% (the operating margin is 45.21% and the net profit margin 29.11%).
Financials: The total debt represents 0.00% of T. Rowe Price Group assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.76% was realized by T. Rowe Price Group.
Twelve trailing months earnings per share reached a value of $4.44. Last fiscal year, T. Rowe Price Group paid $2.08 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.37, the P/S ratio is 3.73 and the P/B ratio is finally 3.38. The dividend yield amounts to 3.36%.
Stock Charts:
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| Long-Term Stock Price Chart of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Payment History of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Yield History of T. Rowe Price Group (TROW) |
Cardinal Health -- Yield: 2.72%
Cardinal Health (NYSE:CAH) employs 37,300 people, generates revenue of $121,546.00 million and has a net income of $1,431.00 million. The current market capitalization stands at $21.18 billion.Cardinal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,172.00 million. The EBITDA margin is 2.61% (the operating margin is 2.02% and the net profit margin 1.18%).
Financials: The total debt represents 16.23% of Cardinal Health assets and the total debt in relation to the equity amounts to 84.51%. Due to the financial situation, a return on equity of 22.28% was realized by Cardinal Health.
Twelve trailing months earnings per share reached a value of $4.12. Last fiscal year, Cardinal Health paid $1.55 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.85, the P/S ratio is 0.17 and the P/B ratio is finally 3.24. The dividend yield amounts to 2.72%.
Stock Charts:
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| Long-Term Stock Price Chart of Cardinal Health (CAH) |
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| Long-Term Dividend Payment History of Cardinal Health (CAH) |
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| Long-Term Dividend Yield History of Cardinal Health (CAH) |
AFLAC Incorporated -- Yield: 2.47%
AFLAC Incorporated (NYSE:AFL) employs 9,915 people, generates revenue of $21,025.00 million and has a net income of $2,533.00 million. The current market capitalization stands at $29.03 billion.AFLAC Incorporated’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,420.00 million. The EBITDA margin is 25.78% (the operating margin is 19.74% and the net profit margin 12.05%).
Financials: The total debt represents 4.20% of AFLAC Incorporated assets and the total debt in relation to the equity amounts to 28.07%. Due to the financial situation, a return on equity of 14.05% was realized by AFLAC Incorporated.
Twelve trailing months earnings per share reached a value of $6.30. Last fiscal year, AFLAC Incorporated paid $1.58 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.35 and the P/B ratio is finally 1.67. The dividend yield amounts to 2.47%.
Stock Charts:
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| Long-Term Stock Price Chart of AFLAC Incorporated (AFL) |
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| Long-Term Dividend Payment History of AFLAC Incorporated (AFL) |
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| Long-Term Dividend Yield History of AFLAC Incorporated (AFL) |
Chubb -- Yield: 2.22%
Chubb (NYSE:CB) employs 22,000 people, generates revenue of $19,138.00 million and has a net income of $2,834.00 million. The current market capitalization stands at $59.00 billion.Chubb’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,839.00 million. The EBITDA margin is 20.06% (the operating margin is 18.38% and the net profit margin 14.81%).
Financials: The total debt represents 9.48% of Chubb assets and the total debt in relation to the equity amounts to 33.28%. Due to the financial situation, a return on equity of 9.65% was realized by Chubb.
Twelve trailing months earnings per share reached a value of $7.48. Last fiscal year, Chubb paid $2.66 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.75, the P/S ratio is 3.03 and the P/B ratio is finally 1.39. The dividend yield amounts to 2.22%.
Stock Charts:
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| Long-Term Stock Price Chart of Chubb (CB) |
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| Long-Term Dividend Payment History of Chubb (CB) |
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| Long-Term Dividend Yield History of Chubb (CB) |
Lowe's Companies -- Yield: 2.08%
Lowe's Companies (NYSE:LOW) employs 180,000 people, generates revenue of $59,074.00 million and has a net income of $2,546.00 million. The current market capitalization stands at $59.30 billion.Lowe's Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,568.00 million. The EBITDA margin is 11.12% (the operating margin is 8.41% and the net profit margin 4.31%).
Financials: The total debt represents 40.46% of Lowe's Companies assets and the total debt in relation to the equity amounts to 165.26%. Due to the financial situation, a return on equity of 28.76% was realized by Lowe's Companies.
Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, Lowe's Companies paid $1.07 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.47, the P/S ratio is 1.00 and the P/B ratio is finally 7.99. The dividend yield amounts to 2.08%.
Stock Charts:
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| Long-Term Stock Price Chart of Lowe's Companies (LOW) |
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| Long-Term Dividend Payment History of Lowe's Companies (LOW) |
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| Long-Term Dividend Yield History of Lowe's Companies (LOW) |
Walgreens Boots Alliance -- Yield: 1.84%
Walgreens Boots Alliance (NASDAQ:WBA) employs 240,000 people, generates revenue of $117,351.00 million and has a net income of $4,147.00 million. The current market capitalization stands at $87.95 billion.Walgreens Boots Alliance’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,673.00 million. The EBITDA margin is 7.39% (the operating margin is 5.11% and the net profit margin 3.53%).
Financials: The total debt represents 26.18% of Walgreens Boots Alliance assets and the total debt in relation to the equity amounts to 63.68%. Due to the financial situation, a return on equity of 13.74% was realized by Walgreens Boots Alliance.
Twelve trailing months earnings per share reached a value of $3.82. Last fiscal year, Walgreens Boots Alliance paid $1.46 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.94, the P/S ratio is 0.75 and the P/B ratio is finally 2.95. The dividend yield amounts to 1.84%.
Stock Charts:
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| Long-Term Stock Price Chart of Walgreens Boots Alliance (WBA) |
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| Long-Term Dividend Payment History of Walgreens Boots Alliance (WBA) |
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| Long-Term Dividend Yield History of Walgreens Boots Alliance (WBA) |
PPG Industries -- Yield: 1.70%
PPG Industries (NYSE:PPG) employs 46,600 people, generates revenue of $15,330.00 million and has a net income of $1,426.00 million. The current market capitalization stands at $25.43 billion.PPG Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,667.00 million. The EBITDA margin is 17.40% (the operating margin is 12.57% and the net profit margin 9.30%).
Financials: The total debt represents 25.22% of PPG Industries assets and the total debt in relation to the equity amounts to 86.43%. Due to the financial situation, a return on equity of 27.65% was realized by PPG Industries.
Twelve trailing months earnings per share reached a value of $2.97. Last fiscal year, PPG Industries paid $1.41 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.85, the P/S ratio is 1.62 and the P/B ratio is finally 5.05. The dividend yield amounts to 1.70%.
Stock Charts:
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| Long-Term Stock Price Chart of PPG Industries (PPG) |
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| Long-Term Dividend Payment History of PPG Industries (PPG) |
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| Long-Term Dividend Yield History of PPG Industries (PPG) |
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| 10 Cheap Dividend Aristocrats And The 20 Highest Yielding Aristocrats (click to enlarge) |
