Overall, it’s mainly of use to investors who prize dependable income, dividend growth that will probably keep up with inflation, and some of the lowest volatility of any stock in the United States.
The company has seen its share of drama over the years. Most recently, its stock has sold off 30% since early September 2018, causing its dividend yield to soar to a record high near 5%. That said, let’s take a look at the company’s latest slump to review if anything appears to have changed with its dividend safety profile or long-term outlook.
Thanks to its regulated business model and management’s conservative capital allocation, the company has long been a source of safe and growing dividends. And combined with strategic acquisitions and diversification into the midstream industry, it has delivered some of the best earnings and dividend growth rates of any regulated utility.
In short, investors need to account for the company’s uninspiring growth outlook and the potential need for another big acquisition to improve its growth trajectory. With other pharma stocks offering similar yields, clearer growth potential, and more diversified drug portfolios, investors interested in this space may consider looking elsewhere.
Each stock on this list appears to have a safe dividend, backed by a stable business model and healthy payout ratio, a strong balance sheet, and below average stock price volatility. Simply put, these 10 dividend aristocrats can help you sleep better at night during the next economic and market downturn, whenever that proves to be.