"Future Dividend Aristocrats Offer Steadiness and Yield Up to 6.5%"
Three stocks, Verizon, Evergy, and an unnamed third company, are likely to join the ranks of the Dividend Aristocrats in the future. These stocks have attractive dividends and long payment histories, making them promising additions to the BÖRSE ONLINE Global Dividend Stars Index.
To become a Dividend Aristocrat, a company must meet several key criteria. It must be a constituent of the S&P 500 Index, have raised its regular dividend per share for at least 25 consecutive years, maintain a market capitalization of at least $3 billion, have an average daily trading value of at least $5 million over the prior three months, and adhere to sector balance rules to avoid overconcentration.
Verizon, a telecommunications company, is particularly stable and attractive due to its business model, which provides a steady and predictable cash flow through contracts. The company also ventures into energy production, using various sources such as coal, uranium, solar, and wind. Verizon is projected to become a Dividend Aristocrat in five years, with a current dividend yield of 6.5%.
Evergy, an energy company active in the United States, is on its way to becoming a Dividend Aristocrat. The company has a strong dividend payout history, and it is projected to become a Dividend Aristocrat, offering a dividend yield of 4.6%. Evergy produces power in the US and is currently awaiting an additional year to meet the 25-year consecutive payout increase requirement to become a Dividend Aristocrat.
Edison International, one of the largest energy suppliers in the United States, particularly active in California, is also projected to become a Dividend Aristocrat in 2027. The company has increased its payouts for 21 consecutive years and currently offers a dividend yield of 3.8%.
Investing in these stocks could potentially yield dividends from companies that will become Dividend Aristocrats in the future. Dividend aristocrats are often sought after by investors due to their steady and secure dividends that are regularly increased. They are companies that have increased their payouts for 25 consecutive years and are considered high-quality stocks on the stock exchange.
Becoming a Dividend Aristocrat is a significant achievement, as it requires sustained success over a long period. It signifies a company's resilience and consistent dividend growth even through various economic challenges, making them appealing for investors seeking reliable income and long-term dividend compounding. The current list of 69 Dividend Aristocrats is updated quarterly and these companies are recognized for their resilience and consistent dividend growth.
[1] Investopedia. (2022). Dividend Aristocrats. [online] Available at: https://www.investopedia.com/terms/d/dividendaristocrats.asp [2] CFA Institute. (2021). Dividend Aristocrats. [online] Available at: https://www.cfainstitute.org/-/media/documents/research/reading-room/white-papers/2021/dividend-aristocrats-2021.pdf [3] S&P Dow Jones Indices. (2022). S&P 500 Dividend Aristocrats. [online] Available at: https://www.spglobal.com/spdji/en/indices/equity/sp-500/sp-500-dividend-aristocrats/ [4] Yahoo Finance. (2022). S&P 500 Dividend Aristocrats. [online] Available at: https://finance.yahoo.com/screener/search?q=SP%20500%20Dividend%20Aristocrats
- In the future, investors may consider adding Verizon, Evergy, and other promising companies to their portfolios, as they are projected to join the ranks of the Dividend Aristocrats, renowned for their steady and secure dividends.
- As investors seek reliable income and long-term dividend compounding, stocks of companies on the path to becoming Dividend Aristocrats, such as Verizon and Evergy, could be worth considering for investing in the stock-market.
