The 24 Safest Dividend Aristocrats Retirees Can Buy In July

Seeking AlphaRetirementThe 24 Safest Dividend Aristocrats Retirees Can Buy In JulyJul. 5, 2020 11:43 PM ET|| Includes: ADM, AFL, AROW, CB, CSL, DCI, ED, ESS, FELE, GD, GRC, GWW, JW-B, KO, MDU, MGRC, MMM, MO, NFG, NUE, PEP, SEIC, UGI, UMBFby: Dividend SenseiDividend Sensei The Dividend KingsDividend ideas from a top team of analysts to help you sleep well at night.SummaryJuly brings a worsening US pandemic, rising economic risk and the highest market valuations in 19 years. Short-term correction risk is high.
Conservative income investors, such as retirees trust dividend champions, aristocrats and kings to generate reliable and growing income in all economic/market conditions.
MMM, KO, MO, NFG, GWW, NUE, GRC, PEP, ED, ADM, CSL, UGI, DCI, MDU, MGRC, SEIC, UMBF, FELE, CB, AROW, JW-B, and ESS are the safest dividend champions for July.
These 24 blue-chip quality (or better) dividend champions, aristocrats, and kings, on average yield 3.2%, are 15% undervalued and have 11.4% probability-weighted expected returns over the next 5 years (vs. 12.5% 23.5-year CAGR historical returns).
Combined with dividend growth, cash, and bond ETFs, these 24 blue-chip champions & aristocrats can create a truly Sleep Well At Night bunker retirement portfolio that has generated superior absolute and volatility-adjusted returns over the last 12 years. That includes the Great Recession, which saw the biggest market crash since The Great Depression.


It's an exciting but also frightening time for income investors.
S&P 500 Valuation Matrix
Year EPS Consensus YOY Growth Forward PE Blended PE Overvaluation (Forward PE) Overvaluation (Blended PE) 2020 $125.11 -23% 25.0 21.8 53% 28% 2021 $163.43 30% 19.2 22.1 17% 30% 2022 $186.58 13% 16.8 18.0 3% 6%
(Sources: F.A.S.T Graphs, FactSet Research, Brian Gilmartin, Reuters'/Refinitiv/Lipper Financial)
The sharp rally in stocks over the last two months has resulted in the highest valuations in 19 years.
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