“3 Dividend Aristocrats For Safe Dividends And High Total Returns”
November 27, 2020
“Undervalued Dividend Aristocrat #1: AbbViev…
Our fair value estimate for AbbVie stock is a P/E of 10.5, compared with a forward P/E of 8.4. This means that if AbbVie’s valuation expanded from 8.4 to 10.5 over the next five years, total returns (including EPS growth and dividends) could exceed 10% per year…
Undervalued Dividend Aristocrat #2: Walgreens Boots Alliance…
Continuing to grow sales and earnings, albeit at a modest rate, would still allow Walgreens to increase its dividend each year, as it has done for 45 consecutive years. Shares yield 4.5% currently, and the stock appears to be undervalued. With a forward P/E ratio of 7.9 compared with our fair value estimate of 10, we believe Walgreens stock can provide total returns of 13%-14% per year over the next five years…
Undervalued Dividend Aristocrat #3: AT&T…
The stock is also significantly undervalued in our view, trading at a forward P/E ratio of 8.9 compared with our fair value estimate of 11. This means valuation expansion could boost future shareholder returns by approximately 4.6% per year over the next five years. Including the 7.3% dividend yield and 3% expected annual earnings-per-share growth, expected returns could reach nearly 15% over the next five years…”
https://finance.yahoo.com/news/3-dividend-aristocrats-safe-dividends-184837062.html