The REIT’s business model is quite simple and has delivered spectacular long-term results. Read more about this in our free e-book. The focus of this article is on Dividend Aristocrats in the sensitive sectors: Communication Services: cable wireless, internet providers. Thanks for reading this article. In addition, the stock has a current dividend yield of 1.8%. We have compiled a list of 150+ REITs, that are worthy of further consideration, based on their dividend yields and dividend growth potential. If the stock valuation retraces to the fair value estimate, the corresponding multiple contraction would reduce annual returns by 8.5%. The good news is that its low cost of capital (via share issuances above net asset value and low interest rates thanks to its A-rating) enable it to accretively deploy capital despite compressing cap rates. This resilience allowed Atmos Energy to continue increasing its dividend each year. Helping You Make The Most Of Your Money – Invest Smarter with Dividend, Copyright 2011-2020, Unilever warns on missing its 2019 sales growth target. AT&T also provided an essential three-year capital allocation framework for its business, including paying down debt, which is essential for a sound business. This indicates the stock looks reasonably valued today. You can download the full list of Dividend Aristocrats by clicking on the link below: Click here to download your Dividend Aristocrats Excel Spreadsheet List now. Based on our fair value estimate of 12, we view this stock as undervalued right now and with upside potential. Should the stock return to our forecast fair value of 17 times FFO, it would provide a ~6.7% headwind to annualized total returns. One group that is surprisingly under-represented, is the utility sector. The fact that there are only two utilities on the list may come as a surprise, especially since utilities are widely regarded as being steady dividend stocks. Realty Income has a very impressive dividend history, particularly for a REIT. Plus, contractual rent growth increased by 1.2%, well above the normal 1% level. The Dividend Aristocrats are a unique group of companies. At the same time, Real Estate Investment Trusts (REITs) seem like natural fits for the Dividend Aristocrats. That said, shares are quite expensive at the moment. The Dividend Aristocrats are an exclusive group of companies that have increased their dividend for at least 25 consecutive years. Archer-Daniels-Midland operates in 160 countries and generates annual revenue above $64 billion. Realty Income has done this by building a broadly diversified portfolio of well located real estate with many high quality tenants. In fact, Realty Income owns a highly diversified portfolio by industry, tenant, and geography. We expect Realty Income to hold up similarly well during the next downturn, and in fact it will likely present the trust with an opportunity to refuel its growth pipeline as it will likely use its strong balance sheet to snatch up discounted properties. This is why we recommend long-term investors looking for the best stocks, first consider the Dividend Aristocrats. Dividend Aristocrats In Focus Part 61: Ross Stores. In return, the dividend investors receive a high dividend yield above 5% and a positive EPS growth. And yet, there are only three REITs on the list of Dividend Aristocrats: Federal Realty Investment Trust (FRT), Essex Property Trust (ESS), and Realty Income (O). The company derives rental income from all over the United States as well as the United Kingdom, insulating itself against regional challenges. For 2020 AT&T expects revenue growth of 1% to 2%, adjusted earnings-per-share of $3.60 to $3.70 and a dividend payout ratio in the low-50% range. As dividend aristocrat, AT&T has raised its dividend already for 36 consecutive years. Atmos Energy is a large-cap utility. Dividend Aristocrats In Focus Part 58: Expeditors International of Washington Published on January 28th, 2020 by Josh Arnold Expeditors International of Washington Inc. (EXPD) may not be the best known stock to most investors given that it services a logistics and transportation niche in global commerce. The list of Dividend Aristocrats is diversified across multiple sectors, including consumer goods, financials, industrials, and healthcare. The overall price-performance of AT&T is very poor, combined with the dividend, the total return is ~145% over the last 10 years. AT&T is reducing a dividend investor risk here. The quality and value unlocked through this large deal reflects the power of Realty Income’s broad network and attractive cost of capital. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment. We expect the company to grow earnings by 6% per year over the next five years. Published on February 3rd, 2020 by Nate Parsh. The list of Dividend Aristocrats is diversified across multiple sectors, including consumer goods, financials, industrials, and healthcare. There are only two utility stocks on the list of Dividend Aristocrats: Consolidated Edison (ED) and 2020 addition Atmos Energy (ATO). This gives it the ability to build a stronger portfolio while also having more growth levers available to it, generating superior risk-adjusted returns for shareholders. One group that is surprisingly under-represented, is the utility sector. For the coming 5 years, we see a total annual return in excess of around 10%, consisting of the 5.4% dividend yield, 4% expected EPS growth. Sector Overview 4. Dividend Aristocrats Analysis (The Dividend Aristocrats In Focus Series) 5. Gas service is necessary and vital to society. Companies with a low debt ratio have the option of maintaining or even increasing the dividend even during recessions. The company serves over 3 million natural gas customers spread across eight different states. Realty Income has spent much of the past year trading between $70 and $80 per share, which is well above our fair value estimate of $56. These companies have high-quality business models that have stood the test of time, and showed a remarkable ability to raise dividends every year regardless of the economy. Business model and growth perspective. Therefore, risk-averse investors looking primarily for income right now–such as retirees–could see greater value in buying utility stocks like Atmos Energy. We have compiled a list of all 64 Dividend Aristocrats, along with relevant financial metrics like dividend yield and P/E ratios. In December, AT&T announced another dividend increase. The results of this model speak for themselves: 16.8% compound average annual total return since the 1994 listing on the New York Stock Exchange, a mere 0.4 Beta against the S&P 500, growing cash flows per share in 22 out of its 23 years, achieving a 93.8% adjusted EBITDARE Margin, and having one of the few A- credit ratings among U.S. REITs. This is well above our fair value estimate of 16, which is equal to the 10-year average price-to-earnings ratio for the stock. It is important that companies that can maintain or even increase their dividend payments in bad times. This article will discuss this brand new Dividend Aristocrat in more detail. International Dividend Portfolio dropped -1.17% after +5.76% last month, Dividend Retirement Portfolio -0.89% in September, European Dividend Aristocrats Performance: September 2020, Dividend Kings Performance September 2020, Dividend Aristocrats Performance: September 2020, must have increased dividends every year for at least 25 consecutive years, Liquidity at least USD 5 million (average daily value traded), Diversification, at least 40 constituents and no sector allocation above 30%, 2007 adjusted earnings-per-share of $2.76, 2008 adjusted earnings-per-share of $2.16 (22% decline), 2009 adjusted earnings-per-share of $2.12 (1.8% decline), 2010 adjusted earnings-per-share of $2.29 (8% increase), For the European focused investors there is also the list of.