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5 Top Dividend Aristocrats to Buy for a Big Upside in 2021

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Though Wall Street was on a roller-coaster ride through 2020, it ended the year on a strong note. The Fed’s intention to keep rates at ultra-low levels coupled with expectations that the new administration will come up with substantial fiscal stimulus measures may help stocks climb north this year as well.

Market pundits expect corporates to perform much better this year, especially after the coronavirus slump. Coronavirus vaccines have also been introduced lately, which should certainly be a shot in the arm for beaten-down stocks, particularly the cyclical ones. Prominent among them are industrials, energy, financials and consumer discretionary stocks. However, these progresses have been priced in, making it quite a challenge for stocks to keep gaining this year.

Moreover, a new coronavirus strain has emerged, which is fast spreading across the globe. The new variant has started to spread in countries such as the U.K., with British Prime Minister Boris Johnson recently ordering a new lockdown to curb the spread that has the potential to completely disrupt the health system.

Recently, New York Governor said that the new variant of the U.K. coronavirus has been found in his state, raising concerns about its impact on hospital capacity. Lest we forget, the hospitalization rate in the United States is rising despite the measures taken by the government.

Talking about hospitalization, according to data tracked by The Washington Post mentioned in one of their articles, more than 128,000 people across the United States have been hospitalized due to COVID-19 as of Jan 4. The article went on to say that a record 2,800 patients were admitted yesterday.

Amid the alarming surge in coronavirus cases, another factor worrying stock market investors is the consequence of the two key Senate runoff elections in Georgia on Jan 5. The result may determine the destiny of the stock market in the near term. No matter which party wins, certain areas of the stock market may benefit while the rest could get affected. Such uncertainty at this point of time is clearly casting a pall over the vaccine-driven economic recovery.

5 of the Best Dividend Aristocrats to Buy Now

Given the aforesaid concerns, investors should look for stocks that provide risk-adjusted returns. To make the search easier, it’s prudent to invest in dividend aristocrats since they boast of strong fundamentals and are unperturbed by market gyrations. They also have better quality businesses, which help distinguish them from dividend payers. Let us, thus, take a look at the five top dividend aristocrats that should be added to your portfolio. These stocks also flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

The Procter & Gamble Company PG is engaged in the manufacture and sale of a range of branded consumer packaged goods. The company currently has a Zacks Rank #2. Procter & Gamble has paid out dividends for almost 130 years and has raised its payout for a whopping 63 successive years. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. The company’s expected earnings growth rate for the current year is a solid 8.6%.

Leggett & Platt, Incorporated LEG designs and produces various engineered components and products worldwide. The company currently has a Zacks Rank #2. This company is known for raising its dividend for 48 consecutive years. The Zacks Consensus Estimate for its current-year earnings has moved up 7.3% over the past 60 days. The company’s expected earnings growth rate for the current quarter is a superb 70.7%.

Stanley Black & Decker, Inc. SWK is a diversified global provider of tools and related accessories, mechanical access solutions; electronic security solutions, engineered fastening systems etc. The company currently has a Zacks Rank #2. For 52 straight years, the company has raised its dividend. The Zacks Consensus Estimate for its current-year earnings has advanced 3.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter is a stunning 145%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Genuine Parts Company GPC is a distributor of automotive replacement parts in the United States, Canada and Mexico. The company is known to have raised its dividends for 63 straight years. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved 0.4% north over the past 60 days. The company’s expected earnings growth rate for the current quarter is an encouraging 44.6%.

T. Rowe Price Group, Inc. TROW is a global investment management organization based in Baltimore, MD. The company has raised its dividend for 33 consecutive years. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 1.1% over the past 60 days. The company’s expected earnings growth rate for the current quarter is a promising 32.1%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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Procter & Gamble Company The (PG) : Free Stock Analysis Report
 
Genuine Parts Company (GPC) : Free Stock Analysis Report
 
Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
 
Leggett & Platt, Incorporated (LEG) : Free Stock Analysis Report
 
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
 
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