Friday, January 30, 2015


If you're looking for stocks with room to grow their dividends, I checked the top 20 Dividend Aristocrats for 2015 and have identified 5 stocks that I think are worth looking in to.  The list includes:

1.  AFLAC (AFL)  Recent price $57.08, P/E of 9.0, EPS 6.38, Dividend $1.56, Payout Ratio 24, Dividend Yield 2.73%.

2.  Dover (DOV)  Recent price $70.04, P/E of 15.1, EPS $4.65, Dividend $1.60, Payout Ratio of 34, Dividend Yield 2.28%.

3.  Archer Daniels Midland (ADM)  Recent Price $46.63, P/E of 16.4, Dividend $0.96, Payout Ratio 33, Dividend Yield 2.06%.

4.  Chubb (CB)  Recent Price $97.90, P/E 12.0, EPS $8.53, Dividend $2.00, Payout Ratio 23, Dividend Yield 2.04%.

5.  Franklin Resources (BEN)  Recent Price $51.53, P/E 13.9, EPS $3.79, Dividend $0.60, Payout Ratio 16, Dividend Yield 1.16%.

All five have below average price to earnings and low payout ratios, leaving them plenty of room to increase dividends.  Chubb just approved a $1.3 billion dollar share repurchase program, which should add shareholder value without tax consequences.  I don't own individual shares of any of these stocks, but am definitely considering adding them to my portfolio as cash allows.  In the mean time, I'll be giving them a closer look.

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