Rick Orford
4 min read
In This Article:
“Cheap” isn’t something you’d normally associate with quality, stable, and mature dividend stocks with solid revenue streams and massive international presences. Indeed, Dividend Aristocrats - companies that have paid increasing dividends for 25 or more years and are typical powerhouses in their sector - and because of it, they usually trade at a premium.
But that’s not always the case.
Sometimes, during or after market volatility, stock prices become silly, and premium stocks dip. This gives income investors like you and me the opportunity to snag these stocks at a discount.
It’s even better when such stocks are highly rated by Wall Street analysts and are expected to move bullishly based on technical analysis - it gives you more chances of capital appreciation while enjoying stable and increasing dividends.
So, today, let’s look at the cheapest buy-rated Dividend Aristocrats to add to your long-term portfolio.
I used the following filters on Barchart’s Stock Screener tool to get my list:
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Overall Opinion %: 50% or more buy rating. The Overall Opinion % filter is part of Barchart’s proprietary Opinion feature, which consolidates the results of 13 popular analytics tools throughout different periods to generate a buy, hold, or sell signal based on the interpreted results. A stock with a 50% or more buy rating indicates that a majority of the results are leaning more towards a bullish price movement in the future.
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Current Analyst Rating: 4 (Moderate Buy) to 5 (Strong Buy).
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P/E Ratio TTM: 0.01 (Very Low) to 30 (Medium). We’re looking for companies with growing earnings.
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Watchlists: Dividend Aristocrats
With these filters set, I ran the screen and got four results, arranged from lowest to highest TTM P/E:
However, upon comparing them to their respective sectors’ P/E, only two of the four results are trading below industry averages. So, I decided to remove the stock trading above its sector P/E, with the lowest signal percentage and analyst rating, which is Linde Plc.
With that out of the way, let’s discuss each company, starting with the cheapest Dividend Aristocrat worth buying:
TTM P/E: 20.42
Healthcare Sector P/E: 24.98
Cardinal Health is a major American multinational healthcare services provider that offers a wide range of healthcare services and medical products to over 90% of U.S. hospitals and more than 5 million homebound patients. It also has operations in over 35 countries.
