20 Worst Dividend Aristocrat Stocks According to Analysts

1. Amcor plc (NYSE:AMCR)

Average Analyst Rating Score: 4.2

Amcor plc (NYSE:AMCR) is a global packaging company that develops and produces a wide range of packaging solutions. On May 1, the company declared a quarterly dividend of $0.125 per share, which was consistent with its previous dividend. It has raised its dividends for 40 consecutive years. AMCR tops our list of the worst dividend aristocrat stocks.

Amcor plc (NYSE:AMCR) reported strong earnings in fiscal Q3 2024. However, it reported revenue of $3.41 billion, which declined by 7% from the same period last year. Not only this, the revenue also missed analysts’ estimates by $83.14 million. The drop in revenue was because of the weakness in the healthcare sector and in its North American beverage business. In its earnings report, the company mentioned that the price mix negatively affected sales by about 3%. This was due to larger-than-expected volume declines in high-margin healthcare categories, which the company had already anticipated and mentioned in the previous quarter. In terms of dividends, the company has a high payout ratio of over 72%, which is concerning for income investors.

Analysts have maintained a consensus Sell rating on Amcor plc (NYSE:AMCR), which makes it one of the worst dividend aristocrat stocks on our list.

Insider Monkey’s database of Q1 2024 indicated that 17 hedge funds held stakes in Amcor plc (NYSE:AMCR), down from 21 in the previous quarter. These stakes are valued at over $65.6 million in total.

While we acknowledge the potential of dividend growth stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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