The 3 Cheapest Dividend Aristocrats for a Lifetime of Income

The 3 Cheapest Dividend Aristocrats for a Lifetime of Income
The 3 Cheapest Dividend Aristocrats for a Lifetime of Income

Everyone likes a good deal, but in the markets the best deals are rarely advertised. And I say we’re lucky, because sometimes even the strongest companies get pushed into oversold territory, not because the business is broken, but because the feeling is.

While others are afraid, That’s exactly where I find opportunities. And that’s why I often turn to the Dividend Aristocrats, the elite group of S&P 500-listed companies that have consistently increased their dividends for more than 25 years. And when these stocks trade near their recent lows, while still earning solid analyst support and paying a reliable (and growing) income stream, to me, this creates a window of opportunity.

With that, today I’m focusing on finding dividend aristocrats that are in that sweet spot where value meets momentum.

Using Barchart’s Stock Screener, I selected the following filters to get my list:

  • Annual dividend yield (FWD), %– Left blank to sort the results from highest to lowest performance.

  • 14-day Relative Strength Index (RSI): Less than 40%. RSI below 30% suggests the stock is “oversold” and above 80% is considered “overbought.” I set the maximum at 40% as a “practically oversold zone.”

  • Percentage from low: Within 10% of the 1 month minimum. It confirms that the stock is still close to a bullish reversal zone, which may give me a chance to get in before the bounce starts.

  • Number of analysts: 12 or higher. The greater the consensus, the better.

  • Current Analyst Rating: 3.5–5. Stocks that are “moderate buy” to “strong.”

The screen returned six results, and I’ll cover three, ordered by performance from highest to lowest, to compile my list of the best Dividend Aristocrats to buy now.

Let’s start with the first Dividend Aristocrat:

J.M. Smucker is a company that started selling apple butter and has grown to make some of the biggest brands in the world, including Smucker’s jams, Folgers coffee, and Milk-Bone. Apart from that, it also dominates the premium pet food market with a 47% share.

In its recent quarterly report, sales rose 2.6% year-over-year to $2.3 billion, while its net income rose 1,085% to $241 million. While the stock has risen marginally from its one-month low, it currently has an RSI of 39.19, possibly making the current level a particularly attractive entry point.

The company pays an annual forward dividend of $4.40, which translates to a yield of around 4.4%, the highest yield on this list. At the same time, a consensus among 18 analysts rates the stock as a “Moderate Buy,” a rating that has been consistent over the past three months. Other than that, with a high target of $135, there could be up to 35% upside in the stock over the next 12 months.

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