The article uses TipRanks’ Dividend Aristocrat tool to identify three dividend aristocrat stocks that have a Buy rating on Wall Street and hold at least 20% upside. The stocks are:
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Forget margin or options. Here's how the pros trade IBMDividend aristocrats are S&P 500 companies that have raised their shareholder payouts every year for at least 25 consecutive years. This streak of consistency makes them highly sought-after by investors looking to steady payouts in addition to capital appreciation.
What Makes These Dividend Aristocrats Stand Out?
According to Wall Street analysts, the three stocks listed below are worth buying. Each stock currently has a dividend payout ratio of at least 58%, meaning that each company recently distributed at least half of its net earnings to shareholders as dividends. Furthermore, each company currently has a Buy rating based on consensus from top analysts or broader Wall Street agreement, with significant upside potential.
Be sure to click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio. Here are today’s top dividend aristocrat stock picks from TipRanks.
- McCormick & Company (MKC) — McCormick is a U.S. packaged foods company focused on making and distributing spices, seasoning mixes, condiments, and other flavorful products. The Maryland-based company currently has a dividend payout ratio of 121.57%. MKC paid 48 cents per share in its last dividend issuance, with a dividend yield of 3.43%. Its shares currently carry a Moderate Buy consensus rating from 10 analysts, with an average price target of $64.56 that suggests about 23% upside.
- Amcor (AMCR) — Amcor is a Swiss packaging and container business that makes and sells packaging products such as rigid containers and plastic caps. The Zurich-based company currently has a dividend payout ratio of 69.13%. It paid 65 cents a share in its last dividend issuance, with a dividend yield of 3.20%. AMCR stock also currently holds a Moderate Buy consensus rating from nine Wall Street analysts. This comes with an average price target of $51.44, which implies a more than 23% upside.
- International Business Machines (IBM) — IBM is a global tech giant that offers hybrid cloud and artificial intelligence services and is known for its development of quantum computers. The company offers services such as software for business automation, data and analytics, and on-premises and cloud-based server and storage solutions. The New York-based company currently has a dividend payout ratio of 58.08%. IBM paid $1.68 per share in its last dividend issuance, with a dividend yield of 1.37%. Its shares currently carry a Moderate Buy consensus rating from 17 analysts, with an average price target of $307.75 that implies about 22% upside.
More on Dividend Aristocrats
Some observers also treat recent spin-offs as dividend aristocrats if their parent companies meet the required track record, effectively granting the offshoot the parent’s dividend history.
Interested in More Dividend Aristocrat Stocks?
To find more stocks like these, take a look at TipRanks’ Dividend Aristocrats tool.
The page provides an exhaustive list of all dividend aristocrats, including their most recent dividend yields, previous dividend amounts, payout ratios, and other details.