One Dividend Aristocrat Set To Soar And One You Should Ignore

Seeking AlphaDividend IdeasOne Dividend Aristocrat Set To Soar And One You Should IgnoreDec. 3, 2020 2:46 AM ET|| Includes: PII, SPGIby: Dividend SenseiDividend Sensei The Dividend KingsMaximize your income with the world’s highest-quality dividend investments SummaryDividend aristocrats are beloved by income investors and for good reasons.
They are the most dependable dividend blue-chips in the world, and combine several alpha factors to generate consistently market-beating returns over time.
But in this market bubble many aristocrats are incredibly overvalued, creating elevated valuation and volatility risk.
S&P Global is about 50% overvalued. It may be one of the highest quality companies on earth, but buying at these prices is a potentially costly mistake you could regret for many years to come.
In contrast, Polaris is a 12/12 quality Ultra SWAN hyper-growth dividend champion that's 22% undervalued. Analysts expect 15% to 16% CAGR long-term growth to drive about 19% CAGR total returns over the next five years, about 6X the likely returns of the S&P 500.
(Source: Imgflip)
The Dividend Aristocrats are beloved by conservative investors such as retirees and for good reason.
dividend champion: any US stock with a 25+ year dividend growth streak dividend aristocrat: any S&P 500 company with a 25+ year dividend growth streak dividend king: any company with a 50+ year dividend growth streak Ben Graham considered 20 years without a dividend cut as an important measure of quality.
(Source: Imgflip)
If 20 years without a cut is good, then 25+ years of steadily growing dividends, in all economic, industry, and market conditions is a sign of supreme quality and dependability retirees can trust to help pay the bills.
7 Proven Ways To Beat The Market Over Time

(Source: Ploutos) data as of the end of November
What's more, Dividend Aristocrats have also beaten the S&P 500 over the long term, which is why they are one... Read more