3 Dividend Aristocrats on the Edge of a Big Move

Core Viewpoint - The article emphasizes the importance of not only focusing on yield when selecting dividend stocks, but also considering potential growth and analyst ratings for better investment decisions [1][2]. Group 1: Investment Strategy - Many investors are interested in income investing but lack a clear process for selecting the right dividend stocks [1]. - The article highlights three Dividend Aristocrats with high current yields and potential for price appreciation, suggesting a dual focus on income and growth [2]. Group 2: Selection Criteria - The selection process involved filtering companies based on significant dividend growth (over 20% in 5 years), a positive analyst consensus (ratings of 4 to 5), and a minimum of 12 analysts covering the company for reliability [3]. - After applying these filters, 17 Dividend Aristocrats were identified, which were then sorted by forward dividend yield to find the top three [4]. Group 3: Company Profile - AbbVie Inc (ABBV) - AbbVie is a healthcare company focused on developing treatments for cancer and immune disorders, with a stock price of approximately $255 per share and a 5-year gain of about 112% [5]. - The company has increased its dividend payout by nearly 45% over the past five years, currently offering an annualized dividend of $6.56, or $1.64 quarterly, resulting in a forward yield of almost 2.9% [6]. - AbbVie's payout ratio stands at 68.08%, indicating a sustainable dividend policy [6].