Cash Burn: 3 Dividend Aristocrats to Dump for Buyback Plays

Core Viewpoint - Dividend investing is effective but slow, with potential high opportunity costs during market rallies, suggesting a shift towards companies with aggressive buyback strategies for short-term gains [1] Group 1: Dividend Aristocrats to Sell - Archer Daniels Midland (ADM) has seen a decrease in earnings and its dividend yield of 3.31% and growth rate of 12.12% may not satisfy income-focused investors [2] - ADM's Nutrition segment's operating profit decreased by 36% year-over-year, and operational issues have contributed to declining profitability [2] - S&P Global (SPGI) has a low shareholder yield of 0.76% and a dividend yield of just 0.89%, despite 51 years of consecutive growth [4] - SPGI's capital appreciation over five years is 85.94%, but its high stock price limits income potential through options strategies [4][5] - Medtronic (MDT) faces pricing pressures and competition, with a high payout ratio of 87.90% and a low dividend growth rate of 1.47% [6] - MDT's stock price has fallen 8.15% over the past five years, and its Q3 FY24 revenue was $8.89 billion, marking a 4.7% increase [6] - Analysts predict MDT's EPS could climb over 80% to 5.25, but this is speculative and optimistic [7]