Dividend Aristocrats with low forward
Price-to-earnings originally published at long-term-investments.blogspot.com. Everybody talks about
Dividend Aristocrats when discussing the best dividend growth stocks. Those
companies have raised their dividend payments over a period of more than 25
years in a row and being selected by the credit rating agency Standard & Poor’s. The index
has only 54 constituents. Normally, Dividend Aristocrats are highly valuated
because of their high quality and low risk business models.
If you pay a big premium on your asset, you will
not get a good return in the end. It’s very simple. All you need to do is to
scout for attractive bargains at the capital market.
Today I would like to screen the Dividend
Aristocrats Index by the cheapest companies in terms of forward P/E. Only
19 stocks have a current forward P/E ratio below 15. Some of them have bigger
amounts of debt and others are slow growing. However, nearly 70 percent of the
results have a current buy or better rating by brokerage firms.
All members of the Dividend Aristocrats Index
generated a positive year-to-date performance. It’s also a sign for the quality
of the index. In average, they have a stock price performance of 16.03 percent.
1.02 percent points better than the broader S&P 500.