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3 Dividend Aristocrats So Cheap, Analysts Call Them Buys
Yahoo Financeยท 2025-10-28 08:54
Group 1 - The current investment environment is characterized by changing interest rates, inflation, and geopolitical uncertainty, making dividend stocks more attractive for their stability and income generation [1] - Dividend Aristocrats are S&P 500 companies that have consistently paid and increased dividends for at least 25 consecutive years, demonstrating resilience in challenging environments [2] - Selecting stocks randomly is not advisable; a strategic approach is necessary to identify undervalued stocks with strong fundamentals [2] Group 2 - A stock screener was utilized to identify high-yielding companies, focusing on those with a price-to-earnings (P/E) ratio between 10 and 20, and consensus ratings of "Moderate" to "Strong Buy" [3][4] - Amcor Plc (AMCR) is highlighted as the first Dividend Aristocrat, with a P/E ratio of 11.76 compared to the sector average of 23.25, indicating it is undervalued [5][6] - Amcor reported a 44% year-over-year sales increase to nearly $5.1 billion, despite a net loss of $39 million, and offers a forward annual dividend of $0.51 per share, yielding around 6% [7]