Dividend aristocrats are companies that have consistently increased their payouts to investors for 25+ years. As shown below, the SPDR dividend aristocrat ETF (SPYD) has outperformed the S&P 500 index this year. Let us look at the top three dividend aristocrats to invest in in the remaining part of 2021.
Dividend aristocrats ETF vs S&P 500
Target (NYSE: TGT) is an American retailer with a market capitalisation of more than $123 billion. The company sells its products in retail outlets and in its e-commerce platform. Indeed, its mobile app is one of the best performers in both Android and iOS stores in the US.
The Target stock price has jumped by more than 45% this year. It has outperformed the dividend aristocrats ETF and the S&P 500 index.
Target has done well by delivering market-beating returns in the past few quarters. For example, in the most recent quarter, the company said that its revenue rose by about 9.51% to $25.1 billion. This was a $125 million beat.
Target will publish its next results on October 17 and there is a likelihood that it will also beat analysts estimates. They expect that its third-quarter revenue rose to about $24 billion while its profit jumped to $2.80 per share.
Most analysts believe that the Target stock price has more upside to go. For example, those at Deutsche Bank and Goldman Sachs expect that it will rise to $300 soon. This makes it a good dividend aristocrat to invest in.
S&P Global (NYSE: SPGI) is a relatively unknown company. Yet its products and services are widely used globally. Investors around the world rely on its ratings services to know where to allocate capital. Together with Fitch and Moody’s, they have a near oligopoly in the ratings industry.
In addition, S&P Global provides indices that are used to build exchange-traded funds (ETFs) and other products. For example, it owns the S&P 500 index and Dow Jones. The company also provides data to companies in almost all industries.
The S&P Global stock price has jumped by more than 40% this year and it has more room to grow. Most analysts have a buy rating on the stock and they expect it to rise to $500 soon. The stock could jump later this year if its acquisition of IHS Markit gets regulatory approval.
Sherwin-Williams (NYSE: SHW) is a dividend aristocrat valued at more than $84 billion. It is the biggest paint-maker in the United States. It generates more than $18 billion in revenue every year. The Sherwin-Williams stock price has jumped by more than 35% this year.
In the most recent quarter, the company’s revenue jumped to more than $5.15 billion while the earnings-per-share rose to $2.09.
Analysts expect that the stock will keep rising in the near term. According to Yahoo Finance, most analysts are either buy or strong buy rating on the stock. They expect that it will rise to more than $330.
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