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3 Highly Ranked Dividend Aristocrat Stocks to Buy Now
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In economic uncertainty investors often seek stocks that can act as a hedge against market volatility. Stocks that can weather storms and offer dividends are a bonus. In relation to trading and investing in this year’s market environment, most want to know how the company’s stock can hold up amid higher inflation.
Let’s take a look at three highly ranked Zacks stocks that are also Dividend Aristocrats, raising their dividends for at least 25 consecutive years. These stocks should help investors fight back against inflation and a market downturn.
Archer Daniels is a leading producer of food and beverage ingredients and goods made from agricultural products. Commodity prices have been high along with inflation, making companies that produce them the beneficiaries. To that note, Archer Daniels produces oilseeds, corn, wheat, cocoa, and more.
The company also engages in the manufacturing, sale, and distribution of natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products.
Dividend History: ADM has a 1.69% annual dividend yield at $1.60 a share. The annualized dividend growth over the last five years is 4.12%. ADM currently has a 22% payout ratio and has raised its dividend for 49 consecutive years.
ADM sports a Zacks Rank #1 (Strong Buy) with EPS estimates on the rise, and the Agriculture-Operations Industry currently ranks in the top 27% of Zacks industries.
Archer Daniels earnings are expected to climb 42% to $7.40 a share in 2022, based on Zacks estimates. Fiscal 2023 earnings are expected to decline -14% after a tough-to-follow year but estimate revisions are largely up at $6.33 a share compared to $5.96 per share 90 days ago. Sales are set to jump 19% this year and slightly decline by -1% in FY23 to $100.50 billion.
Year to date, ADM is up +41% to crush the S&P 500’s -17%. ADM has also outperformed its Zacks Sub Industry, which is up +31% YTD. Over the last five years, ADM is up an impressive +177% when including its dividend to also outperform the benchmark and its Zacks Sub Industry’s +84%.
Image Source: Zacks Investment Research
Archer Daniels has been a leader in its industry. Trading around $95 a share, ADM has a forward P/E of 12.7X and below the industry average of 20.1X. Even better, ADM trades nicely below its decade-high of 20.5X and the median of 14.6X.
ADM has beaten EPS expectations for 14 consecutive quarters. The Average Zacks Price Target still suggests 5% upside from current levels in addition to a reliable dividend.
The Automotive-Replacement Parts Industry is in the top 35% of all Zacks industries making Genuine Parts worth a look for dividend seekers. The dividend aristocrat is a leader in its space, distributing automotive and industrial replacement parts and materials. Despite the challenging sales environment for the auto industry, GPC should have pricing power during high inflation with auto parts and materials always needed for the industry in some form.
Dividend History: GPC has a 1.97% annual dividend yield at $3.58 a share. Genuine Parts’ dividend growth over the last five years is 5.13% with a payout ratio of 44%. GPC has raised its dividend for 66 consecutive years.
GPC stock is up an impressive 29% YTD vs its peer groups -17% drop. Over the last five years, GPC’s total return is +143% outperforming the benchmark and its peer group at +2%.
Image Source: Zacks Investment Research
Trading around $180 a share GPC recently hit 52-week highs. GPC has a forward P/E of 22.3X, above the industry average of 14.2X. However, GPC has been a leader in its industry and trades slightly below its decade-high of 23.4X. What is intriguing for the stock is the rising earnings estimates.
According to Zacks estimates, GPC earnings are expected to jump +18% to $8.16 a share in 2022. Fiscal 2023 earnings are expected to be up another 6%. Top line growth is expected as well with sales up 16% this year and another 2% in FY23 to $22.42 billion.
GPC sports a Zacks Rank #2 (Buy) with rising EPS revisions and solid growth expected despite a tougher operating environment. GPC has also beaten EPS expectations for 10 consecutive quarters.
Oil conglomerate Exxon Mobil (XOM - Free Report) is well known for its dividend and has the highest yield on this Aristocratic list as well. Exxon Mobil is a premier integrated energy company with three main segments: Upstream (oil & production), Downstream (refining), and Chemical (manufacturing & marketing petrochemicals).
With the price of oil staying near $90 a barrel, XOM should be able to offer some defensive protection for investors during stretches of high volatility. This has been the case for most of the year.
Dividend History: XOM has a 3.19% annual dividend yield at $3.64 a share. Exxon Mobil’s annualized dividend growth over the last five years is 2.43% with a payout ratio of 28%. Exxon Mobil has raised its dividend for 40 consecutive years.
Exxon Mobil’s YTD performance has continued to impressively outperform the benchmark and its peers. XOM’s total return is a stellar +91% YTD vs. the Oil-Gas- International Integrated Markets +59%.
Image Source: Zacks Investment Research
Trading around $112 a share, XOM shares recently hit 52-week highs as well. XOM has a forward P/E of 8.2X. This is above its industry average of 4.7X, but still below the S&P 500 at 18.4X. And XOM is a proven industry leader. Better still, XOM is trading at a discount to its decade median of 17.7X and well off its highs of 349.5X.
According to Zacks estimates, XOM earnings are now expected to jump 159% to $13.92 a share in 2022. Fiscal 2023 earnings are expected to be down -21%, but earnings estimate revisions are rising once again. Exxon Mobil’s sales are projected to be up 49% this year, but down -7% in FY23 to $396.28 billion following an excellent year.
With top and bottom line growth continuing to increase for the current year, XOM is sporting a Zacks Rank #2 (Buy). Exxon Mobil’s Oil and Gas -Integrated- International Industry is also in the top 15% of over 250 Zack Industries.
Bottom Line
Positive earnings estimate revisions, along with reliable income from these Dividend Aristocrats make them suitable investments to consider. These stocks are having strong YTD performances despite the challenging economic environment and may be able to sustain these runs. Outside of income investing, these three Dividend Aristocrats could also be an option for diversification in the portfolio.
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3 Highly Ranked Dividend Aristocrat Stocks to Buy Now
In economic uncertainty investors often seek stocks that can act as a hedge against market volatility. Stocks that can weather storms and offer dividends are a bonus. In relation to trading and investing in this year’s market environment, most want to know how the company’s stock can hold up amid higher inflation.
Let’s take a look at three highly ranked Zacks stocks that are also Dividend Aristocrats, raising their dividends for at least 25 consecutive years. These stocks should help investors fight back against inflation and a market downturn.
Archer Daniels Midland (ADM - Free Report)
Archer Daniels is a leading producer of food and beverage ingredients and goods made from agricultural products. Commodity prices have been high along with inflation, making companies that produce them the beneficiaries. To that note, Archer Daniels produces oilseeds, corn, wheat, cocoa, and more.
The company also engages in the manufacturing, sale, and distribution of natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products.
Dividend History: ADM has a 1.69% annual dividend yield at $1.60 a share. The annualized dividend growth over the last five years is 4.12%. ADM currently has a 22% payout ratio and has raised its dividend for 49 consecutive years.
ADM sports a Zacks Rank #1 (Strong Buy) with EPS estimates on the rise, and the Agriculture-Operations Industry currently ranks in the top 27% of Zacks industries.
Archer Daniels earnings are expected to climb 42% to $7.40 a share in 2022, based on Zacks estimates. Fiscal 2023 earnings are expected to decline -14% after a tough-to-follow year but estimate revisions are largely up at $6.33 a share compared to $5.96 per share 90 days ago. Sales are set to jump 19% this year and slightly decline by -1% in FY23 to $100.50 billion.
Year to date, ADM is up +41% to crush the S&P 500’s -17%. ADM has also outperformed its Zacks Sub Industry, which is up +31% YTD. Over the last five years, ADM is up an impressive +177% when including its dividend to also outperform the benchmark and its Zacks Sub Industry’s +84%.
Image Source: Zacks Investment Research
Archer Daniels has been a leader in its industry. Trading around $95 a share, ADM has a forward P/E of 12.7X and below the industry average of 20.1X. Even better, ADM trades nicely below its decade-high of 20.5X and the median of 14.6X.
ADM has beaten EPS expectations for 14 consecutive quarters. The Average Zacks Price Target still suggests 5% upside from current levels in addition to a reliable dividend.
Genuine Parts (GPC - Free Report)
The Automotive-Replacement Parts Industry is in the top 35% of all Zacks industries making Genuine Parts worth a look for dividend seekers. The dividend aristocrat is a leader in its space, distributing automotive and industrial replacement parts and materials. Despite the challenging sales environment for the auto industry, GPC should have pricing power during high inflation with auto parts and materials always needed for the industry in some form.
Dividend History: GPC has a 1.97% annual dividend yield at $3.58 a share. Genuine Parts’ dividend growth over the last five years is 5.13% with a payout ratio of 44%. GPC has raised its dividend for 66 consecutive years.
GPC stock is up an impressive 29% YTD vs its peer groups -17% drop. Over the last five years, GPC’s total return is +143% outperforming the benchmark and its peer group at +2%.
Image Source: Zacks Investment Research
Trading around $180 a share GPC recently hit 52-week highs. GPC has a forward P/E of 22.3X, above the industry average of 14.2X. However, GPC has been a leader in its industry and trades slightly below its decade-high of 23.4X. What is intriguing for the stock is the rising earnings estimates.
According to Zacks estimates, GPC earnings are expected to jump +18% to $8.16 a share in 2022. Fiscal 2023 earnings are expected to be up another 6%. Top line growth is expected as well with sales up 16% this year and another 2% in FY23 to $22.42 billion.
GPC sports a Zacks Rank #2 (Buy) with rising EPS revisions and solid growth expected despite a tougher operating environment. GPC has also beaten EPS expectations for 10 consecutive quarters.
Exxon Mobil (XOM - Free Report)
Oil conglomerate Exxon Mobil (XOM - Free Report) is well known for its dividend and has the highest yield on this Aristocratic list as well. Exxon Mobil is a premier integrated energy company with three main segments: Upstream (oil & production), Downstream (refining), and Chemical (manufacturing & marketing petrochemicals).
With the price of oil staying near $90 a barrel, XOM should be able to offer some defensive protection for investors during stretches of high volatility. This has been the case for most of the year.
Dividend History: XOM has a 3.19% annual dividend yield at $3.64 a share. Exxon Mobil’s annualized dividend growth over the last five years is 2.43% with a payout ratio of 28%. Exxon Mobil has raised its dividend for 40 consecutive years.
Exxon Mobil’s YTD performance has continued to impressively outperform the benchmark and its peers. XOM’s total return is a stellar +91% YTD vs. the Oil-Gas- International Integrated Markets +59%.
Image Source: Zacks Investment Research
Trading around $112 a share, XOM shares recently hit 52-week highs as well. XOM has a forward P/E of 8.2X. This is above its industry average of 4.7X, but still below the S&P 500 at 18.4X. And XOM is a proven industry leader. Better still, XOM is trading at a discount to its decade median of 17.7X and well off its highs of 349.5X.
According to Zacks estimates, XOM earnings are now expected to jump 159% to $13.92 a share in 2022. Fiscal 2023 earnings are expected to be down -21%, but earnings estimate revisions are rising once again. Exxon Mobil’s sales are projected to be up 49% this year, but down -7% in FY23 to $396.28 billion following an excellent year.
With top and bottom line growth continuing to increase for the current year, XOM is sporting a Zacks Rank #2 (Buy). Exxon Mobil’s Oil and Gas -Integrated- International Industry is also in the top 15% of over 250 Zack Industries.
Bottom Line
Positive earnings estimate revisions, along with reliable income from these Dividend Aristocrats make them suitable investments to consider. These stocks are having strong YTD performances despite the challenging economic environment and may be able to sustain these runs. Outside of income investing, these three Dividend Aristocrats could also be an option for diversification in the portfolio.