Top US Aristocrat Stocks – May 2020…

While we know that the stock market will grow over time, on a day-to-day or even month-to-month basis, the stock market is always changing value due to the daily fluctuation of all the stocks.

The opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which dividend stocks are an opportunity. An opportunity can be for a stock you already own or simply for a new addition to your portfolio. It is important to note that the rankings below do not assess the viability of the business. Some of the companies are strong blue chip stocks while others can be smaller companies with growth.

Top 5 US Dividend Aristocrats Stocks

The monthly top US Dividend Aristocrats are not always the same for an extended period. It’s the reality of the stock markets. To that end, it’s important to always review your options when you are ready to invest. If you like monthly top stocks, you can review the Top Canadian Dividend Stocks.

The top 5 US Dividend Aristocrats are listed below with a summary of the company with some metrics provided.

In the short run, the market is a voting machine, but in the long run it is a weighing machine.

Methodology

The top stocks identified below are based on a score calculated using a number of financial data points from the companies. In the end, the score is generated from following five key indicators:

• 52-Week Range: Trend over the past 52 weeks. Is the stock pulling back from a 52 week high?
• P/E Ratio: Is the stock price running away from its earnings?
• Dividend Yield: Is the yield attractive? Usually could identify a pull back if the yield starts to go up or major trouble if it goes too high.
• Dividend Growth: Uses dividend growth and the Chowder Rule. Is the company capable of growing the dividend consistently?
• Dividend Payout Ratio: Uses historical averages to put today’s ratio in perspective. Is the company able to grow the dividend at the same rate it increases its earnings?

1. Walgreens Boots Alliance, Inc.

Walgreens Boots Alliance is a leading pharmacy retailer and drug distributor in the world created through the combination of Walgreens and Alliance Boots in 2014. It is the largest retail pharmacy across the USA and Europe and also has a presence in 25 other countries. Walgreens’ operations can be organized into three segments – Retail Pharmacy USA is the largest accounting for ~75% of 2018 revenue (prescription drugs and general merchandise), Retail Pharmacy International (9% – prescription drugs and retail health, beauty, toiletries, and other consumer products) and Pharmaceutical Wholesale (16% – wholesaling and distribution of brand-name pharmaceuticals). Its retail segment consists of 18,700 stores operating in 11 countries with over 400 distribution centers. Walgreens has a huge portfolio of iconic brands like Walgreens, Duane Reade (U.S.), Boots and Alliance Healthcare, as well as health and beauty product brands such as No7, Botanics, Liz Earle, and Soap & Glory.

Investment Data

2. General Dynamics

General Dynamics is a leading global aerospace and defense company providing a wide range of products and services in business aviation; combat vehicles, weapons systems and munitions; IT services and C4ISR solutions; and shipbuilding. General Dynamics is a global leader in combat systems and is at the forefront of the business-jet industry. The company carries out its operations through four business groups: Aerospace (23% of 2Q19 revenue), Combat Systems (17%), Information Technology (23%), Mission Systems (13%) and Marine Systems (24%). The U.S. Department of Defense (DoD) is General Dynamics’ primary customer accounting for 65% of the company’s total revenues. U.S. commercial customers constitute ~14% of total revenues followed by non-U.S. commercial and government customers. General Dynamics is the proud owner of some of the world’s most technologically advanced business-jet aircraft, wheeled combat vehicles, command and control systems, and nuclear submarines. Most of General Dynamics businesses are leading global providers of mission-critical products and systems. Gulfstream and Jet Aviation, two of General Dynamics businesses, are global leaders in business aviation services and have powerful brand recognition.

Investment Data

3. Medtronics

Coming from humble beginnings, Medtronic was founded in 1949 as a medical equipment repair shop by Earl Bakken and his brother-in-law, Palmer Hermundslie. Over the years, Medtronic developed additional core technologies, including implantable mechanical devices, drug and biologic delivery devices, and powered and advanced energy surgical instruments. Today, Medtronic’s technologies are used to treat nearly 40 medical conditions.

Investment Data

4. Franklin Resources, Inc.

Franklin Resources, Inc. is a global investment management organization. It provides investment management, fund administration, sales and distribution, shareholder and other services. The company manages more than $717 billion in assets (AUM) at September 30, 2018, and offers products and services under Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby brands. Franklin’s assets can be broadly classified into equity (43% of total AUM as of September 2018), fixed income (36%), multi-asset (20%), and cash management (1%). The U.S. remains Franklin’s largest market with 67% of AUM, followed by EMEA (14%), Asia Pacific (13%), Canada (4%) and Latin America (2%). Franklin operates through an integrated network of risk management professionals, a global trading desk network and a strong distribution franchise across the globe. The company has an unrivaled global reach with offices in 34 countries and clients in more than 170 countries. Franklin’s clientele includes retail (72% of AUM), institutional (25%) and high net-worth (3%) clients.

Investment Data

5. T. Rowe Price Group, Inc.

T. Rowe Price Group is a global asset management firm. The company provides diversified products and services like sub-advisory services and separate account management to individuals, advisors, institutions, financial intermediaries, and retirement plan sponsors. It sells a wide range of financial products and services like mutual funds, investment products, separate account management, recordkeeping, and related services. Investment advisory fee accounts for the majority of revenue, which is calculated as a percentage of assets under management.
T. Rowe has a diversified geographic footprint serving clients in 49 countries like the U.S., UK, Hong Kong, Japan, Singapore, and Australia. By geography, the U.S. is its largest market accounting for more than 60% of the net flows, followed by the APAC region (29%) and EMEA (9%). With more than $1.21 trillion of assets under management, the firm manages a diverse and balanced asset class comprising of U.S. equity (48% of total assets in 2018), multi-asset (30%), U.S. fixed income (12%), international equity (8%) and international fixed income (2%).

Investment Data