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Buy 10 Sustainable Dividend Dogs Of Barron's August 100
AvangridAvangrid(US:AGR) Seeking Alphaยท2024-08-11 14:02

Core Insights - The article discusses Barron's seventh annual ranking of the most sustainable companies, highlighting the top 100 based on ESG performance indicators [3][4]. Group 1: Ranking Methodology - Barron's ranking was based on an analysis of the 1,000 largest publicly traded companies, evaluated on five key constituencies: shareholders, employees, customers, community, and the planet [3]. - Over 230 ESG performance indicators were assessed, with companies needing to score above the bottom quarter in each material stakeholder category to qualify for the list [3][4]. Group 2: Dividend-Paying Companies - Among the 100 sustainable companies, 77 were identified as dividend payers, with 10 of these showing annual dividends exceeding their share prices, indicating potential buy signals for investors [4]. - The companies that met this criterion include NextEra Energy Partners, Franklin Resources, and The Kraft Heinz Company, among others [4]. Group 3: Projected Gains - Analysts estimated net gains for ten top ESG companies ranging from 15.3% to 49.52% by August 2025, with four of these stocks also being among the top ten gainers based on analyst target prices [5][6]. - The average net gain for a $10,000 investment in these ten stocks was projected at 23.87%, with an average risk/volatility 7% lower than the market [6]. Group 4: Top Performers - The Estee Lauder Companies were projected to net $495.16 based on analyst estimates, while Target Corp. was expected to net $303.28 [6]. - Other notable projections include Merck & Co. at $238.60 and Bank of America at $200.62, indicating strong potential returns for these companies [6][11]. Group 5: Sector Representation - The top ten sustainable companies by yield included representatives from various sectors, such as utilities (NextEra Energy Partners), financial services (Franklin Resources), and consumer cyclical (Best Buy) [10]. - This diverse representation highlights the broad appeal and potential of sustainable investments across different industries [10].