I’m a diehard dividend growth investor. If you don’t pay your shareholders reliable, rising cash dividends, I’m not interested in investing. But within the universe of all dividend growth stocks, Dividend Aristocrats are some of my favorite stocks. These are stocks that have increased their dividends for at least the last 25 consecutive years. The difficulty level of being able to do something like that is extremely high. And because of that extreme difficulty, there are less than 100 Dividend Aristocrats in existence. These are some of the rarest and highest-quality stocks on the planet. That rarity leads to these stocks often being rather expensive in terms of valuations. However, some Dividend Aristocrats have recently corrected. A correction in the stock market is a decline of 10% or more from the most recent peak. So if you’re the type who doesn’t want to invest until there’s been a correction, here’s your chance.

The first Dividend Aristocrat I want to tell you about is Air Products & Chemicals (APD). Air Products & Chemicals is a global producer and supplier of industrial gases. This Dividend Aristocrat has increased its dividend for 39 consecutive years. You’re waiting for a correction? Well, here you go. This stock is well into correction territory. Actually, it’s corrected almost twice over. I recently highlighted, analyzed, and valued this stock, estimating its intrinsic value at a bit over $329/share – which is right in line with its 52-week high. So not only has this stock corrected, but it didn’t even look expensive before the correction. If you’re looking for an ultra-high-quality Dividend Aristocrat that appears to be in the discount aisle after a severe correction, look no further.

The second Dividend Aristocrat I want to tell you about is Chevron (CVX). Chevron is a multinational energy corporation. The stock’s 52-week high is $113.11. Chevron’s stock is currently priced below $98/share. So we’re clearly in correction territory here. The stock market may not have corrected. But it’s a market of stocks. And many individual stocks, like Chevron, have corrected. Most basic valuation metrics are at, or below, recent respective historical averages. The current 5.5% yield, for instance, is 120 basis points higher than its five-year average. This is a high-yield Dividend Aristocrat that is well below its recent high. If your portfolio could use energy exposure and/or a yield boost, take a look at Chevron.

Last but not least, let’s talk about Leggett & Platt (LEG). Leggett and Platt is a diversified engineered components manufacturer. This $6 billion (by market cap) manufacturer often flies under the radar. But don’t let their small size or obscure name fool you. This company brings the goods. They don’t just manufacture things like furniture components. They’ve manufactured one of the most impressive dividend growth track records you’ll ever find. This Dividend Aristocrat has increased its dividend for an incredible 50 consecutive years. This Dividend King is almost 20% off of its 52-week high. Another dividend growth stock that’s well into correction territory. When people fixate on the market as a whole, they miss out on all of the stocks that make up the market. This stock has a 52-week high of $59.16, which was reached in May. It’s been in correction mode ever since, with shares now at below $48/each. The P/E ratio of 15.9 is well below its five-year average of 19.9. And the current yield is 20 basis points higher than its five-year average. If a Dividend King yielding 3.5% that’s is almost 20% off of its recent peak sounds appealing, consider taking a serious look at Leggett & Platt.

Video Length: 00:08:53