By: Dividend Sensei
Dividends are an essential part of achieving life-changing wealth in the stock market.
Since 1930 the S&P 500 is up an inflation-adjusted 12.4X in price, but 404X with dividend reinvestment, 32.5X more, courtesy of a 2.2% annual dividend boost.
The dividend aristocrats are some of the most dependable dividend growth stocks on earth, consistently offering better returns, lower volatility, and rock solid income growth in all economic conditions.
But not all aristocrats are worth buying. These five are the lowest quality dividend aristocrats, while these five are the most overvalued.
In contrast, these two blue-chips are high-yield bear market aristocrat bargains growing at double-digits and trading at “fat pitch” valuations.
Analysts think one of these aristocrats could deliver 235% returns in the next five years, 4X better than the S&P 500.
The other has 3X the market’s return potential, 160% in the next five years, from a low-risk Ultra SWAN quality dividend king.