Today’s 18 Best Dividend Aristocrats Are Today’s Worst Investments

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The Standard & Poor’s Dividend Aristocrats represent the crème de la crème of dividend growth stocks. These are all companies that have increased their dividend for a minimum of 25 consecutive years. Many of them have consecutively increased their dividends for 30 years, 40 years, 50 years or more. Therefore, they offer a level of predictable dividend growth that is unsurpassed by any other dividend-paying stocks.

From a quality perspective, all the Standard & Poor’s Dividend Aristocrats are awarded investment grade credit ratings. Six of the 68 Dividend Aristocrats are BBB- to BBB+ and all the rest are rated A- or better. Consequently, these high-quality dividend growth stocks represent the best-of-breed dividend growers for prudent investors focused on dividend growth to invest in. However, and unfortunately, in today’s low-interest rate environment, most of these best-of-breed dividend growth stocks have become overvalued in the marketplace. Therefore, investors need to consider, recognize, and even acknowledge that even the best of stocks can become overvalued and therefore poor long-term investment candidates.

With this video, I will cover 18 examples of my favorite businesses that I believe have become un-investable due to extremely high valuations. In this video I will be analyzing these stocks through the lens of FAST Graphs: Automatic Data Processing (ADP), Albemarle (ALB), Air Products (APD), Colgate Palmolive (CL), Clorox (CLX), Cintas (CTAS), Ecolab (ECL), Emerson Electric (EMR), Hormel Foods (HRL), Illinois Tool Works (ITW), Coca Cola (KO), McDonald's (MCD), Medtronic (MDT), McCormick (MKC), Procter & Gamble (PG), Roper (ROP), Sherwin Williams (SHW), S&P Global (SPGI).

Video length 00:22:49

Disclosure:  Long MDT.

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks ...

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William K. 3 years ago Member's comment

I would have much preferred a text presentation over the video.