Dividend Kings—companies with a remarkable track record of increasing dividends for over 50 years—are the crown jewels of long-term portfolios. The allure of these stalwarts is further enhanced when they are available at a bargain, a proverbial cherry on top of an already lucrative cake.
Today, we embark on a quest to uncover the top three most affordable Dividend Kings that not only promise sustained capital growth but also offer a steady stream of dividends, providing investors with a comforting upward trajectory in their investments.
Unveiling the Selection Process
Guided by the North Star of financial prudence, the Barchart Watchlist served as the trusty vessel for this venture. Navigating through a sea of data, specific filters were employed to unearth the hidden gems within the realm of Dividend Kings.
Federal Realty Investment Trust (FRT)
Embarking on our expedition, the beacon of Federal Realty Investment Trust shines brightly. With a legacy spanning over six decades, this Real Estate Investment Trust (REIT) commands a prestigious presence in major hubs like Silicon Valley and New York City, offering investors a proxy to real estate’s riches through the lens of a stock.
With a dividend escalation streak that stretches back 56 years, FRT stands tall as a beacon of consistency in uncertain times. Analysts, recognizing its potential, have bestowed upon it a commendable rating of 4.24. Sporting a modest P/E ratio of 15.53 compared to the S&P 500 Real Estate sector’s 33.43, FRT emerges as a compelling proposition.
AbbVie (ABBV)
In the realm of pharmaceutical behemoths, AbbVie reigns supreme by diversifying its revenue streams beyond the shackles of a single blockbuster drug. While the expiry of exclusivity for Humira dealt a blow, AbbVie’s nimble footwork with Skyrizi and Rinvoq augurs well for its future revenue streams. With analysts bestowing a 4.09 rating upon it and a favorable P/E ratio of 14.74 within the healthcare sector’s 33.24, AbbVie stakes a strong claim in the dividend aristocracy.
Target Corporation (TGT)
Target Corporation not only lures bargain hunters with its discounted merchandise but also beckons dividend aficionados with its 52-year unbroken streak of dividend increments. Weathering the storm of sales fluctuation in 2023, Target showed a resilient rebound by doubling its cash flow, a testament to its operational fortitude. With a respectable 4.20 rating from analysts and a modest P/E ratio of 17.80 below the consumer discretionary sector’s 24.91, Target dazzles as a dividend gem.
Closing Remarks
As the investing adage goes, “buy low, sell high.” The allure of acquiring Dividend Kings at a discount lies in the promise of building a robust income portfolio. However, while the siren song of cheap stocks may be enticing, prudent due diligence is the compass that should guide every investor’s journey towards financial success.