5 Cheap Dividend Aristocrats to Buy

The Dow Jones Industrial Average and other major indexes are hitting all-time highs regularly, and that is making it increasingly difficult to find bargains.

(Image credit: iStock)

The Dow Jones Industrial Average and other major indexes are hitting all-time highs regularly, and that is making it increasingly difficult to find bargains. That’s especially true among Dividend Aristocrats – Wall Street’s elite group of payout-raising companies.

Investors are willingly paying almost 18 times expected earnings for the companies in Standard & Poor's 500-stock index. That price-to-earnings multiple exceeds the index's five-year average of 15.6 and its 10-year average of 14.1, according to data from FactSet.

But that pales in comparison to the Dividend Aristocrats – 50 companies in the Standard & Poor's 500-stock index that have hiked their dividends every year for at least 25 consecutive years. At the moment, these stocks are trading at nearly 21 times forward earnings estimates. So, what’s an income-minded value investor to do?

Fortunately, a few Dividend Aristocrats are offering up their impressive track records of persistent and consistent distribution hikes at affordable prices. Here are five Aristocrats – spanning several industries – that are relatively cheap in a pricey market.

Data is as of Oct. 3, 2017, unless otherwise indicated. Click on symbol links in each slide for current share prices and more.

Companies are listed in alphabetic order. Analysts’ ratings provided by Zacks Investment Research (opens in new tab). The list of 50 Dividend Aristocrats is maintained by S&P Dow Jones Indices (opens in new tab).

Dan Burrows
Contributing Writer, Kiplinger.com