In this article, we discuss 10 dividend aristocrats under $60 you can buy in September. You can skip our detailed analysis of dividend aristocrats and their performance in the past, and go directly to read 5 Dividend Aristocrats Under $60 You Can Buy in September.
As consumer prices in the US are rising at a rapid pace, dividend stocks are witnessing a renewed interest because they offer a regular stream of income. Investors are seeking opportunities in quality dividend companies that have endured different market conditions in the past. Stocks like Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ) are popular in this regard as they have raised their dividends for several years, which shows their stable earnings and strong fundamentals.
Historically, companies that have raised their dividends have outperformed their peers during different market cycles. According to a report by ProShares, in the rising interest rates period from 2008 to 2010, the S&P 500 Dividend Aristocrats Index returned 29.45%, compared with a 15.8% return of the Dow Jones US Select Dividend Index. The report further mentioned that the Dividend Aristocrats index returned 20.8% in the first quarter of 2022, compared with a 16% gain of the DJ US Select Dividend Index. This data also complies with Citigroup’s report, which mentioned that dividend growers have performed well in comparison to other class assets in the first half of 2022. This has raised investors’ interest in dividend companies as they seek the best investment opportunities in this rocky market.
Dividend payments reached their all-time high in the second quarter of 2022, according to the latest report by Janus Henderson Global Dividend Index. The global dividend payments amount to $545 billion globally, up 11.3% on a headline basis. Similarly, the US companies paid $144.4 billion in dividends during the quarter, surpassing the previous quarter’s record. In view of the above discussion, we will discuss some dividend aristocrats under $60.
Our Methodology:
The stocks mentioned below have raised their dividends for over 25 years and have a share price under $60, as recorded on September 5. They are ranked according to their share prices.
Dividend Aristocrats Under $60 You Can Buy in September
10. Amcor plc (NYSE:AMCR)
Share Price as of September 5: $12.02
Dividend Yield as of September 5: 3.99%
Amcor plc (NYSE:AMCR) is an American-Australian packaging company that specializes in the production of cartons, rigid containers, and flexible packaging.
In Q2 2022, Amcor plc (NYSE:AMCR)’s earnings fell in line with the estimates. The company’s revenue for the quarter stood at $14.5 billion, up 13.1% from the same period last year. Its adjusted free cash flow remained consistent with its guidance at $1.06 billion and its operating cash flow stood at $937 million. The company returned over $600 million in share repurchases and expects to allocate approximately $400 million for share repurchases in FY23.
Amcor plc (NYSE:AMCR) currently pays a quarterly dividend of $0.12 per share, with a dividend yield of 3.99%, as of September 5. The company has been raising its dividends for the past 39 years, maintaining a solid dividend growth record like other stocks such as Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ).
In July, CLSA initiated its coverage on Amcor plc (NYSE:AMCR) with a Buy rating and a A$22 price target, calling the company a leader in consumer packaging products.
At the end of Q2 2022, 20 hedge funds tracked by Insider Monkey owned stakes in Amcor plc (NYSE:AMCR), the same as in the previous quarter. The collective value of these stakes is over $252.4 million. Polaris Capital Management was the company’s leading stakeholder in Q2, owning stakes worth roughly $200 million.
9. Franklin Resources, Inc. (NYSE:BEN)
Share Price as of September 5: $25.88
Dividend Yield as of September 5: 4.48%
Franklin Resources, Inc. (NYSE:BEN) is a California-based investment management company that serves clients in over 165 countries. On August 29, the company declared a quarterly dividend of $0.29 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 41 years. As of September 5, the stock’s dividend yield came in at 4.48%. Its dividend are safe with a payout ratio of 34.12%.
In fiscal Q3 2022, Franklin Resources, Inc. (NYSE:BEN) reported an operating cash flow of $819.8 million and its free cash flow came in at $806.7 million. The company generated over $2 billion in revenue and ended the quarter with $5.5 billion in cash and cash equivalents. In addition to this, it also repurchased shares worth over $51 million, with total shareholders’ equity standing at over $12.3 billion.
In August, Deutsche Bank raised its price target on Franklin Resources, Inc. (NYSE:BEN) to $29, as the company showed strong fundamentals in its recent quarterly results. The firm further mentioned that the equity market is expected to rebound in the upcoming quarter.
As of the close of Q2 2022, 24 hedge funds tracked by Insider Monkey owned stakes in Franklin Resources, Inc. (NYSE:BEN), down from 30 a quarter earlier. These stakes hold a total value of over $217.2 million.
8. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Share Price as of September 5: $35.2
Dividend Yield as of September 5: 5.44%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a multinational retail company that owns retail pharmacy chains and several pharmaceutical manufacturing companies. The company was a popular stock among hedge funds in Q2 2022, as 40 funds tracked by Insider Monkey owned stakes in it, worth over $600 million. Ken Griffin, Jim Simons, and Cliff Asness were some of the company’s most prominent stakeholders in Q2.
In fiscal Q3 2022, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) generated $1.6 billion in cash from operating activities and its free cash flow stood at over $1.3 billion. The company had $2.2 billion in cash and cash equivalents at the end of May 2022, compared with $559 million in the prior-year period. Its payout ratio currently stands at 32.3%, which shows that the company is well-positioned to pay dividends smoothly.
On July 13, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) declared a 0.5% hike in its quarterly dividend to $0.48 per share. The company has been making uninterrupted dividend payments for the past 89 years while maintaining a 47-year track record of dividend growth. As of September 5, the stock’s dividend yield came in at 5.44%.
7. Leggett & Platt, Incorporated (NYSE:LEG)
Share Price as of September 5: $37.7
Dividend Yield as of September 5: 4.67%
Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based manufacturing company that designs and manufactures homes and automobile-related products. In June, Goldman Sachs reiterated its Buy rating on the stock as demand for home durables is gaining strength post-pandemic.
In Q2 2022, Leggett & Platt, Incorporated (NYSE:LEG) reported revenue of $1.33 billion, which showed a 4.7% year-over-year growth. The company generated $90 million in operating cash flow, up from $41 million in the same period last year. For FY22, the company expects its operating cash flow to fall between $550 to $600 million. It also expects to pay $230 million in dividends at the end of the fiscal year.
On August 9, Leggett & Platt, Incorporated (NYSE:LEG) declared a quarterly dividend of $0.44 per share, consistent with its previous dividend. The company maintains a 51-year streak of consistent dividend growth, which is one of the longest growth track records in the manufacturing sector. As of September 5, the stock’s dividend yield was recorded at 4.67%.
At the end of Q2 2022, 12 hedge funds tracked by Insider Monkey owned stakes in Leggett & Platt, Incorporated (NYSE:LEG), compared with 15 in the previous quarter. The collective value of these stakes is over $48.3 million. With over $13.2 million worth of stakes, Millennium Management was the company’s largest stakeholder in Q2.
6. V.F. Corporation (NYSE:VFC)
Share Price as of September 5: $40.7
Dividend Yield as of September 5: 4.91%
V.F. Corporation (NYSE:VFC) is a Colorado-based apparel and footwear company that manages 13 brands. In fiscal Q1 2023, the company reported revenue of $2.26 billion, which showed a 3.2% year-over-year growth. The company’s adjusted cash flow from operations came in at $1.2 billion and paid $194 million to shareholders in dividends. At the end of the quarter, it had over $528 million available in cash and cash equivalents, with total assets of over $13.2 billion.
V.F. Corporation (NYSE:VFC) currently pays a quarterly dividend of $0.50 per share and has a yield of 4.91%, as recorded on September 5. The company maintains a 48-year track record of consistent dividend growth.
In August, Deutsche Bank reiterated its Buy rating on V.F. Corporation (NYSE:VFC) as the company reported mixed quarterly results but remained positive on its growing customer base.
As per Insider Monkey’s Q2 2022 database, 29 hedge funds owned stakes in V.F. Corporation (NYSE:VFC), up from 28 in the previous quarter. These stakes hold a consolidated value of over $316.3 million. Diamond Hill Capital owned the largest stake in the company in Q2, worth over $304.8 million.
In addition to Exxon Mobil Corporation (NYSE:XOM), The Coca-Cola Company (NYSE:KO), and Johnson & Johnson (NYSE:JNJ), V.F. Corporation (NYSE:VFC) is another dividend aristocrat to consider in this current market situation.
Ave Maria mentioned V.F. Corporation (NYSE:VFC) in its Q2 2022 investor letter. Here is what the firm has to say:
“One stock was eliminated from the Fund, V.F. Corporation (NYSE:VFC) (apparel & footwear). Deteriorating fundamentals and sustained weakness in some of the company’s core brands led us to liquidate the position.”
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Disclosure. None. 10 Dividend Aristocrats Under $60 You Can Buy in September is originally published on Insider Monkey.
