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Seeking Income? Don't Ignore These 3 Dividend Aristocrats
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Investors love consistent, reliable dividend payouts. After all, who doesn’t love the thrill of getting paid?
And when seeking dividend-paying stocks, many turn to the Dividend Aristocrats.
Dividend Aristocrats have paid and increased their dividend payouts for at least 25 consecutive years, putting their well-established and successful business natures on full display.
Three members of the club – PepsiCo (PEP - Free Report) , Target (TGT - Free Report) , and Genuine Parts (GPC - Free Report) – could all be considered for those seeking an income stream. Let’s take a closer look at each.
PepsiCo
PEP shares have consolidated over the last year, unchanged in value. Nonetheless, analysts have positively revised their expectations for its current fiscal year, with the $8.15 Zacks Consensus EPS estimate up 4% over the last year.
Image Source: Zacks Investment Research
The company’s payout has grown by 6.7% annually over the last five years, owing to its commitment to shareholders. Shares presently yield a sizable 3.1% annually paired with a payout ratio sitting at 66% of its earnings.
Image Source: Zacks Investment Research
Target
Target shares have been notably strong year-to-date, gaining nearly +20% in value and widely outperforming relative to the S&P 500. Shares got a solid boost following its latest set of quarterly results, with investors pleased with the print.
Image Source: Zacks Investment Research
Concerning the release mentioned above, Target exceeded the Zacks Consensus EPS estimate by more than 20% and posted sales modestly above the consensus. Earnings saw year-over-year growth of 57%, whereas sales climbed 1.5%.
Shares currently yield 2.7% annually paired with a sustainable payout ratio sitting at 49% of the company’s earnings. The retailer has upped its payout five times over the last five years, translating to a 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Genuine Parts
Genuine Parts shares have also outperformed the general market year-to-date, gaining +11.6% compared to the S&P 500’s 7.2% gain. Like TGT, shares took off post-earnings following its latest quarterly release.
Image Source: Zacks Investment Research
Shares currently yield a solid 2.6% annually, nicely above its respective Zacks industry average of 2.2%. Dividend growth is also apparent, with GPC carrying a 5.6% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
When structuring a portfolio, many investors blend in dividend-paying stocks for obvious reasons, including limiting drawdowns in other positions, creating a passive income stream, and the ability to maximize return through dividend reinvestment.
And when it comes to dividend-paying stocks, Dividend Aristocrats are common targets, as they’ve upped their dividend payout for a minimum of 25 consecutive years.
All three stocks above – PepsiCo (PEP - Free Report) , Target (TGT - Free Report) , and Genuine Parts (GPC - Free Report) – belong to the elite Dividend Aristocrat group, making them suitable considerations for investors seeking income.
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Seeking Income? Don't Ignore These 3 Dividend Aristocrats
Investors love consistent, reliable dividend payouts. After all, who doesn’t love the thrill of getting paid?
And when seeking dividend-paying stocks, many turn to the Dividend Aristocrats.
Dividend Aristocrats have paid and increased their dividend payouts for at least 25 consecutive years, putting their well-established and successful business natures on full display.
Three members of the club – PepsiCo (PEP - Free Report) , Target (TGT - Free Report) , and Genuine Parts (GPC - Free Report) – could all be considered for those seeking an income stream. Let’s take a closer look at each.
PepsiCo
PEP shares have consolidated over the last year, unchanged in value. Nonetheless, analysts have positively revised their expectations for its current fiscal year, with the $8.15 Zacks Consensus EPS estimate up 4% over the last year.
Image Source: Zacks Investment Research
The company’s payout has grown by 6.7% annually over the last five years, owing to its commitment to shareholders. Shares presently yield a sizable 3.1% annually paired with a payout ratio sitting at 66% of its earnings.
Image Source: Zacks Investment Research
Target
Target shares have been notably strong year-to-date, gaining nearly +20% in value and widely outperforming relative to the S&P 500. Shares got a solid boost following its latest set of quarterly results, with investors pleased with the print.
Image Source: Zacks Investment Research
Concerning the release mentioned above, Target exceeded the Zacks Consensus EPS estimate by more than 20% and posted sales modestly above the consensus. Earnings saw year-over-year growth of 57%, whereas sales climbed 1.5%.
Shares currently yield 2.7% annually paired with a sustainable payout ratio sitting at 49% of the company’s earnings. The retailer has upped its payout five times over the last five years, translating to a 15% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Genuine Parts
Genuine Parts shares have also outperformed the general market year-to-date, gaining +11.6% compared to the S&P 500’s 7.2% gain. Like TGT, shares took off post-earnings following its latest quarterly release.
Image Source: Zacks Investment Research
Shares currently yield a solid 2.6% annually, nicely above its respective Zacks industry average of 2.2%. Dividend growth is also apparent, with GPC carrying a 5.6% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
When structuring a portfolio, many investors blend in dividend-paying stocks for obvious reasons, including limiting drawdowns in other positions, creating a passive income stream, and the ability to maximize return through dividend reinvestment.
And when it comes to dividend-paying stocks, Dividend Aristocrats are common targets, as they’ve upped their dividend payout for a minimum of 25 consecutive years.
All three stocks above – PepsiCo (PEP - Free Report) , Target (TGT - Free Report) , and Genuine Parts (GPC - Free Report) – belong to the elite Dividend Aristocrat group, making them suitable considerations for investors seeking income.