New Dividend Aristocrats for 2023

New Dividend Aristocrats for 2023

DISCLAIMER -  I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice.  These are my findings and can hopefully help you make informed investing decisions.  Consult a Broker or Lawyer before making any investment. 

Some of the better investment stocks that consistently pay dividends are in two lists called Dividend Aristocrats and Dividend Kings.  I did articles on both of these several months ago.

Dividend Aristocrats
Dividend Kings

The two lists sometimes overlap, but the rules to be in each are different.     Read the articles above to get all the details.

In summary, here are the rules for each list:

Traits of a Dividend Aristocrat

1. At least 25 years of consecutive dividend payments with a higher dividend per share each year.

2. The company maintains a minimum market capitalization of 3 Billion dollars. 

3. The stock averages at least 5 million dollars in daily trading.

4. The stock is part of the S&P 500 stock market index and is publicly traded.

Dividend Kings have just one trait, but it is a good one.
 
Traits of a Dividend Kings

1.  They have increased their dividend per share payout for 50 or more years.

 
This year in 2023, we have 3 new members of the Dividend Aristocrats.   While just making the list does not guarantee these will do great in the future, but they definitely warrant a look for your dividend portfolio.   Since these companies have raised their payouts on dividends for at least 25 consecutive years.

Let’s jump into the 3 new members.  J.M. Smuckers (SJM), Nordson (NDSN) and C.H. Robinson Worldwide (CHRW) are all entering the foray of companies who pay consistent dividends.   Let’s talk a bit about each company:
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J. M. Smuckers

Market Value:  $16.0 billion
Dividend yield:   2.7%
Analysts recommendations:  Hold

SJM  - J. M. Smuckers is a well-known consumer staples stock thanks to the company’s wide range of popular brands including Folgers Coffee, Dunking coffee, Jif Peanut butter, and Smuckers jams and jellies plus many others.
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Over the past 3 years, SJM has generated appreciation plus dividends of 15% compared to the 8.6% of the S&P 500.   Over the current year, they have a total return of 8.4% compared to S&P 500’s -7.4%.

Market Value:  $13.9 billion
Dividend Yield:  1.1%
Analysts’ consensus recommendation:  Buy

Nordson NDSN designs and manufactures systems that dispense, apply, and control fluids like adhesives, coatings, and sealants.   Nordson’s customers are in industries ranging from packaging, biotechnology, aerospace, and semi-conductor manufacturing.
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By Nordson’s own count, they say they have raised their dividend for 59 straight years.  This is a long-time market leader.

C.H. Robinson Worldwide

Market Value:  $11.7 billion
Dividend Yield:  2.5%
Analysts’ consensus:  Hold
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CHRW – C.H. Robinson Worldwide provides Freight transportation and logistics services to industries around the world.  It also delivers reliable increases to its quarterly dividends.
It’s most recent dividend paid in 4th quarter of 2022 was 51 cents per share which was a 10.9% increase over the prior quarter.

CHRW has outperformed the past one and 3 year periods, but lagged on 5 year.   In 20 year period, it has annualized total returns beating the S&P 500 by more than 2 points.
The consensus on the street that this is just a ‘hold’ stock currently.

These may or may not be good choices to add to your portfolio this year.   However, remember that dividend-growth stocks tend to hold their value better in periods of rising rates which we are currently experiencing in the United States.   While just Aristocrats dividend returns may not seem great, the combination of it and their growth in stock value can provide some great total returns.   I personally did not add any of these 3, but continue to put money in my selected Dividend Aristocrats and Dividend Kings weekly.

Seeking Alpha pointed out some of the best yields this year on Aristocrats including VFC, TROW, ESS, FRT, AMCR, ABBV, O, IBM, MMM, WBA averaging 4.38%.    I own most of these in my Schwab portfolio.

They also predicted the highest broker-estimated price upsides.  They were WMT, KO, CVX, SYY, GD, CB, APD, ROP, ADM, and NEE averaging a projected 16.41%.   I don’t own them all but do have most of them in my Schwab portfolio.

I truly believe that some of your most consistent year in and year out returns come from carefully chosen Dividend-Growth stocks.   They and some carefully chose Real Estate Trust ETFs make for a great combo.

Info on Real Estate trusts: 
More information on Dividend-Growth Stocks
  
 
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