US Dividends Aristocrats thread

Mr. Wood

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US vaping backlash dents British American Tobacco revenues
27 Nov 2019
The FTSE 100 company has sought to capitalise on boom in cigarette alternatives

BAT said revenues in its “new category” arm – which includes vaping – would grow at the lower end of its previously announced range of 30% to 50% for the 2019 financial year.

not the other tech BAT
choose living, not smoking :s22:
 

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Sherwin-Williams
November 22nd, 2019

Sherwin Williams’ acquisition of Valspar created compelling growth opportunities for this high-quality dividend growth stock. The company should continue to grow its revenue, earnings, and dividends at a high rate over the next several years, barring a major recession.

However, the valuation is too high to warrant a buy recommendation at this time. This is a typical example of a great business trading at a not-so-great price. The following Warren Buffett quote is particularly appropriate in this situation:

“For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.” – Warren Buffett

We think there is a lot of growth ahead along with strong payout expansion, but the very high valuation means we cannot recommend Sherwin-Williams at this point.
 

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Dividend Aristocrats In Focus Part 11: S&P Global
November 22nd, 2019

S&P Global is a strong business, with a long runway of growth up ahead. There will always be a need for financial ratings services. And, future growth potential is strong in new areas like data and financial technology. S&P Global’s acquisitions will accelerate its growth in these segments.

The dividend yield of 0.9% might not be attractive to income investors, but dividend growth investors should view the stock favorably. The company has increased its dividend by 10% per year over the past five years. S&P Global announced a 14% dividend increase last February. The expected payout ratio for 2019 is under 25%, meaning the current payout is safe and there is plenty of room for future increases.

That said, shares are expensive relative to the historical average, earning S&P Global’s stock a hold recommendation at the current price.
 

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Dividend Aristocrats in Focus Part 12: Nucor
November 22nd, 2019
Nucor’s status as a Dividend Aristocrat helps it to stand out among the highly volatile materials sector. There are very few raw materials businesses that have multi-decade track records of compounding their adjusted earnings-per-share.

Nucor has a higher dividend yield than the S&P 500 Index, and the company has a long history of annual dividend increases. Nucor also has a strong industry position and a healthy balance sheet.

However, the current stock valuation does not merit a buy recommendation. And, the company would be significantly affected by a recession. For investors that are looking for raw materials exposure, we recommend waiting for a better opportunity to acquire shares of Nucor.
 

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Dividend Aristocrats In Focus Part 13: Lowe’s
November 22nd, 2019

Lowe’s has a relatively low dividend yield below 2%, but it makes up for this with high dividend growth rates. The company consistently provides double-digit dividend growth each year. The current environment is difficult for retail, but Lowe’s operates in a niche that should withstand e-commerce competitors.

Lowe’s is still growing sales and earnings, which should allow for continued dividend growth. And, it has a low dividend payout ratio, which also supports high dividend increases. The stock may not be enticing for investors interested in high yields, but Lowe’s should continue to increase its dividend each year. However, due to a high current valuation and a low expected rate of return, investors should wait for a better price before buying the stock.
 

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Dividend Aristocrats In Focus Part 14: People’s United Financial
November 25th, 2019
People’s has an attractive dividend yield above 4%, and growth potential for the years ahead. The bank is not immune from economic downturns, and a flat yield curve is a risk. However, People’s has proven to be adept at finding and acquiring growth in its key markets, and we have no reason to believe that won’t continue.

People’s is an appealing stock for its decent valuation, strong competitive position in key markets in the Northeast, and its 4%+ yield. For these reasons, we continue to rate People’s a buy.
 

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Dividend Aristocrats In Focus Part 15: Franklin Resources
November 25th, 2019
Franklin Resources’ assets under management again declined in 2019. It will likely take some time to recover what it has lost, but the company is still growing earnings, thanks to share buybacks. And, the stock offers a 3.8% dividend yield and the potential for annual dividend increases.

With a low valuation, generous yield and possibility of a higher valuation down the road, Franklin Resources could be attractive for value and dividend growth investors.

However, given projected returns, investors interested in the stock are encouraged to wait for a pullback or an improvement in fundamentals before buying Franklin Resources. As such, the stock receives a hold recommendation.
 

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Dividend Aristocrats In Focus Part 16: T. Rowe Price
November 25th, 2019
Investors scanning the financial sector for dividend stocks may naturally land on the big banks. But there is only one bank stock on the list of Dividend Aristocrats, People’s United Financial (PBCT).

In fact, most Dividend Aristocrats hailing from the financial sector, come from the insurance and investment management industry. This speaks volumes about the stability of their business models.

T. Rowe Price is an industry leader, and should continue to increase its dividend each year. However, with just a mid-digit expected rate of return over the next five years, T. Rowe Price receives a hold recommendation from Sure Dividend at this time. Investors are encouraged to wait for a pullback before purchasing this Dividend Aristocrat.
 

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Dividend Aristocrats In Focus Part 17: V.F. Corporation
November 25th, 2019

V.F. Corp has overcome some of the short-term challenges that it faced due to the decline of shopping malls. The company has acquired assets that fit in well with its future plans, and divested those that do not.

The company has also seen impressive growth rates in its core brands, like Vans and The North Face, as well as in the areas of e-commerce. This has V.F. Corp in a strong position for the future.

That being said, our projected total annual return of 3.5% is not attractive enough for us to recommend buying shares of V.F. Corp at the moment. If shares were to pullback, we would strongly recommend that investors consider adding the apparel maker to their portfolio.
 

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Dividend Aristocrats In Focus Part 18: Target
November 25th, 2019
There is no question Target had struggled dealing with the rise of e-commerce shopping along with the rest of retail, but the company appears to have righted itself and growth has returned. Same-store-sales were higher than expected and digital sales continue to impress given the highly competitive environment for the retail industry. Store improvements have also led to an increase in customer traffic.

However, we feel that the current valuation is too rich. In a way, Target is a victim of its own success–the massive rally in share price over the past year has pushed the valuation well above our fair value estimate. As such, we rate shares as a hold and encourage investors to wait for a pullback before buying stock in Target.
 

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again we see that most recommendations are at high valuation. not a good time to show hand. but can hold or wait for price correction, if u believe America will continue to be great.
I think warren buffett will agree. :s13:

no need to pay course sellers thousands oso can receive quality analysis for free. :s13:
 

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Warren Buffett’s latest attempt to put his cash to work is thwarted
NOV 29 2019

KEY POINTS
Tech Data says it has agreed to be bought by private-equity firm Apollo Global Management for $145 a share, which values the tech company at about $5.14 billion, excluding debt.

The deal was sweetened from Apollo’s previous bid of $130 a share, or just over $4.77 billion, after an unnamed suitor topped Apollo’s original offer.

The undisclosed competing suitor was none other than Berkshire Hathaway, CNBC has learned exclusively.

But when Bank of America brought the go-shop provision from Apollo’s deal with Tech Data deal to his attention, he quickly swung into action.

Bank of America called Todd Combs, one of Berkshire investment managers, on Nov. 19.

By the next day, Buffett had decided he would be willing to offer up to $140 a share for the company, besting Apollo’s offer of $130 a share.

Two days after that, Berkshire Vice Chairman Greg Abel traveled to Clearwater, Florida, to meet with Tech Data management. The next day, Saturday, Berkshire formally made the offer of $140 a share for the company, streamlining the process by simply borrowing Apollo’s existing contract for Tech Data in large part, amending it only in a few areas, and on terms that would benefit Tech Data.

On Sunday evening, the Tech Data board approved Berkshire’s offer as a superior deal to Apollo’s original deal.

But by Wednesday, Apollo sweetened its offer to $145 a share, and Buffett bowed out of the bidding war.
 

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retailers will mostly hear news last. by then price alrdy marked up by big boys.
which is why I like buy long term blue chips rather than growth stories
 

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Amazon Gears Up for Holiday Season, to Hire Seasonal Workers
November 29, 2019

Amazon.com, Inc. AMZN is gearing up to handle the 2019 holiday season rush.

Like every year, the company is planning to hire seasonal and temporary employees to handle the holiday season pressure in its unique way. Reportedly, it will hire about 200,000 seasonal workers this holiday season.

I thot they hav the technology to do without humans? :s22:

on one hand, I like tech for betterment of society and efficiency.
but on the other hand some of these seasonal workers mayb like students on vacation jobs, low income workers to supplement their family. I dunno. I juz see it as last time I had to do part time menial job to put myself thru school.
 

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Dividend Aristocrats In Focus Part 19: Chubb Ltd.

November 26th, 2019
While Chubb is a well-managed and diversified insurance company with a long history of growing book value, we find the total projected return to be average. This is due to the high P/B valuation of the stock when compared to its 10-year average. The stability in a cyclical industry is noteworthy, as is the exceptional dividend growth record, but the current valuation makes the stock a hold, and not a buy right now.
 

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Dividend Aristocrats In Focus Part 20: Air Products & Chemicals
November 26th, 2019

Air Products & Chemicals is a strong dividend growth stock, having raised its dividend each year for the past 37 years, including a recent 5.5% increase on January 25th, 2019.

The company has de-risked its business model and that business transformation allows it to focus on its core business of industrial gases. Moreover, it has a large slate of new projects to help stay on track for growth in the coming years. This should benefit shareholders in the form of continued dividend increases on an annual basis.

That said, these positive factors cannot outweigh the significant premium that the market is placing on these shares at the present time. Valuation contraction could reduce Air Products & Chemicals’ expected returns over the next five years significantly. As a result, we recommend investors avoid the stock until a significant decline in the share price brings its valuation back to fair value.
 

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Dividend Aristocrats In Focus Part 21: Leggett & Platt
November 26th, 2019
Leggett & Platt has utilized a proven growth strategy, that has been successful for over 130 years. The company is highly profitable, and has a solid 3% dividend yield, which has grown for 48 years in a row. Further, Leggett & Platt has also earned a place on our list of “blue-chip” stocks. You can see the full list of blue-chip stocks here.

With that being said, Leggett & Platt’s significant share price run in 2019, along with only marginal earnings improvement, has lifted shares to a historically high valuation. It is possible that shares could remain at this level. However, if the valuation were to revert to a more typical valuation, this could considerably reduce an investor’s total return expectation.

Leggett & Platt is an attractive stock for investors interested in stable dividend growth stocks; however, we believe that the current valuation is too high to buy the stock right now.
 

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Dividend Aristocrats In Focus Part 22: Caterpillar
November 26th, 2019
Caterpillar offers investors a wide variety of reasons to want to own the stock today. It has a nearly-3% yield in addition to 26 consecutive years of dividend increases. Its payout ratio is around one-third of earnings, so its dividend has a very high safety rating and has lots of room to continue to expand in the coming years.

It also has favorable fundamental backdrops in its major segments, which means earnings growth should continue for the foreseeable future. Finally, the stock is attractively priced as it trades just under our fair value estimate. Putting these factors together paints a bullish picture of Caterpillar, and we believe it is a buy today even with the recent rally.
 

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Dividend Aristocrats In Focus Part 23: W.W. Grainger


November 27th, 2019
W.W. Grainger is a company managed for the long-term. It has encountered difficulties as of late, but the business continues to persevere, just as it has done for decades. Moreover, the company remains profitable in good times or bad and has an exceptional record of not only paying but also increasing its dividend for 48 straight years.

While the business strength and potential growth are enviable, the dividend yield and the valuation are not particularly compelling at this juncture. As such, we view Grainger as a solid business with an average total return potential over the intermediate-term, making the stock a hold and not a buy right now.
 

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Dividend Aristocrats In Focus Part 24: Clorox

November 29th, 2019

Clorox is a reliable dividend stock. The company has a leadership position across its product markets, with potential for some measure of growth. Right now does not appear to be a good buying opportunity, as Clorox stock trades significantly above its 10-year average and at ~124% of our fair value estimate.

The company should be able to continue its four-decade long streak of annual dividend raises regardless of the overall economic climate. However, the valuation is enough for us to rate the stock a sell and to recommend those interested in owning it to wait for a much lower valuation.
 
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