4 Dividend Aristocrats To Buy In July And 4 To Watch

Core Insights - The S&P 500 Dividend Aristocrats index now includes 67 companies, with recent changes including the removal of Walgreens Boots Alliance (WBA) and the addition of Fastenal (FAST) [1] - 3M's (MMM) status as a Dividend Aristocrat is at risk due to a dividend cut following the spin-off of its Solventum healthcare business [1] - The article highlights the importance of Dividend Aristocrats for reliable income growth and suggests they are a good starting point for long-term dividend investment [1] Changes in Dividend Aristocrats - Walgreens Boots Alliance (WBA) was removed from the index after cutting its dividend by nearly 50% in late 2023, ending a nearly 50-year streak of annual increases [1] - Fastenal (FAST) was added to the index, recognized for its 25 consecutive years of dividend hikes [1] - Other changes included the removal of V.F. Corp. (VFC) and the addition of Kenvue (KVUE), which was spun off from Johnson & Johnson (JNJ) [1] Investment Opportunities - Investors can gain exposure to the S&P 500 Dividend Aristocrats through the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which has $11.6 billion in assets and an expense ratio of 0.35% [2] - The article identifies four high-yield Aristocrats: Realty Income Corp (O), Franklin Resources Inc (BEN), Amcor PLC (AMCR), and Kenvue Inc (KVUE), which are considered attractive for their high dividends relative to share prices [2] Analyst Projections - Analysts predict significant gains for several Dividend Aristocrats by July 2025, with projected returns ranging from 18.17% to 27.95% [3] - Genuine Parts Co (GPC) is projected to net $276.52, Kenvue Inc (KVUE) $262.54, and Medtronic PLC (MDT) $237.28 based on target price estimates and dividends [3] - The average net gain for a $10,000 investment in the top ten Aristocrats is estimated at 22.1% [3] Yield Analysis - The article discusses the "Dividend Dogs" strategy, which focuses on high-yield stocks that have seen price declines, making their yields more attractive [4] - The top ten Aristocrats by yield include Realty Income Corp, Franklin Resources Inc, Amcor PLC, and Kenvue Inc, with the potential for further gains as market conditions change [8] Performance Metrics - The average projected upside for the top ten Aristocrats is 19.51%, with individual stocks like Genuine Parts Co and Kenvue Inc showing potential upsides of 25.63% and 22.88%, respectively [9] - The article emphasizes the importance of both yield and analyst price targets in assessing the attractiveness of Dividend Aristocrats [10]